Difference between a Saving Account and a Current Account
|
Basis |
Savings Account |
Current Account |
|---|---|---|
|
Meaning |
A savings account is primarily meant for individuals who want to save money and earn interest on their savings. |
A current account is designed for businesses, professionals, and entities that have frequent banking transactions. |
| Purpose | The main purpose is to encourage personal savings. | The main purpose is to facilitate business transactions. |
| Interest | People having savings accounts typically earn interest on deposits. | People having current accounts do not earn interest on deposits. |
| Withdrawal Limit | There is a limit on withdrawals per month. | There is no limit on the number of withdrawals. |
| Minimum Balance | A savings account generally requires a minimum balance. | A current account often requires a higher minimum balance. |
| Transaction Charges | The account may have minimal transaction charges. | The account may have transaction charges based on usage. |
| Overdraft Facility | There is limited or no overdraft facility. | An overdraft facility is available based on the creditworthiness of the account holder. |
| Account Holders | Individuals are the account holders. | Businesses, companies, and entrepreneurs are account holders. |
| Usage | It is used for long-term savings and emergencies. | It is used for day-to-day business transactions. |
Difference between Saving Account and Current Account
A savings account and a current account are two common types of bank accounts offered to individuals crucial for personal and business transactions. A savings account is designed to save money over time. It typically offers a modest interest rate on the deposited amount. However, a current account is primarily used for business transactions and frequent withdrawals. It usually does not offer any interest on the deposited amount.
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