Difference Between Current Account And Savings Account

Difference Between Current Account And Savings Account

First of all, before going to the details we should learn that what is a savings account and what is a current bank account. Okay, let us discuss what is the savings bank account first.

Current account vs. Savings account

Savings Bank Account

Savings bank account is the account where the primary purpose is to save our money for our future use. These type of account is created by individuals or jointly by two or more peoples. this account is usually used to deposit the money to get interest over the money for a period of time decided by the bank. The rate of interest varies from a bank to another . There are some banks which provide 4%to6% of interest annually. There are also shorten banks those provide 7%of annual interest.  There are also some banks those provide 3.5%of annual interest on minor accounts. these banks are really good that they provide savings accounts to the minors also.

Nowadays you can open your savings account in your phone too. These accounts are digitally maintained. these type of accounts are provided by the companies like paytm, airtel payment bank and etc. We will discuss Difference between current account and savings account after discussing the current bank account.

Current Bank Account

As from the name it says that the account which is used to make transactions all the time. here the depositor used to deposit money for the transaction without limitations. He may withdraw this amount at any moment. These type of account does not get interests over the money. these accounts are used by businessmen only for the transactional purpose. Here the depositor uses cheque against the amount also but he/she could provide a large amount. It doesn’t have any limitations. These accounts are also divided into parts according to its use. A small businessman uses the preliminary current account and a big businessman used to get the supreme current account.

Large business across the country needs high transactions that’s why these current accounts are used. everyone can’t get this type of accounts. A person has to show his business details before getting a current account over a bank. The best facility of the current account is where you can exchange the foreign currency also. For this exchange you have to use the current account named as foreign currency accounts. Nowadays some banks are providing interest over the current bank accounts. SBI is one of them which provides 2% intrest on the current bank account over the present money in the current bank account

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Difference Between Current Account And Savings Account

Here let us discuss about the difference between the current account and savings account. Current bank account we can do unlimited transactions but in a savings bank account, we can do transactions as per the banks’ limitations. nowadays the maximum transactions we can do over a savings account is 20. Again a current account needs a business. A savings bank account does not need any business. We get more interest on savings account than the current account.

Savings banks account doesn’t need a high volume of minimum account balance. a current bank account always needs a high balance to be maintained.

Difference Between Current Account And Savings Account
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