Current Account VS Savings Account | Difference & What to Know
Current Account VS Savings Account
Current Accounts and Savings Accounts are the two most significant types of an account offered by banks but do you know what exactly difference between Current Account VS Savings Account. What account you should open it’s totally depends on your requirement, nature and frequencies of transactions. There is an elusive between the accounts, which may or may not be needed to open because usually people had a vague idea about how it’s works and still explicit about the functions clearly so let’s discuss the Difference & What to Know about Current and Savings Account.
Each of these accounts offers various facilities, benefits and restrictions that will resolve how to access and manage the money. Banks accept deposits in current account and let permit of unlimited transactions subject to a minimum balance. This minimum balance quite differs from Bank to Bank. Banks will not pay any interest on a current account on the other hand it pays 4 percent interest annually on saving accounts.
An account kept up with commercial bank, for offers the frequent transactions is called Current Account. In this type of account, any amount can be withdrawn or deposited as per customer need. Users can unlimited transactions through this account without giving any notification. They satisfy many needs of an organization that needs cash transfer in the daily activities. It is also suitable for giving payments to lenders via cheques so this sort of account generally satisfied by businessmen, firms, companies, and public enterprises. It is also known as “Demand deposit account” or “transactional account.”
- For every businessman or association current account is fundamental requirement.
- It is most suitable for any company or businessman so that daily transactions would be completed easily.
- To create a Current Account in any private or government sector bank, a large amount is mandatory.
- Each bank has different criteria but the minimum amount for creating a current account individually is 5,000/-
- You must have 10,000 rupees to open a non Individual current account
- You will also get net banking, credit card and many more facilities.
Know About – 6 Benefits Of Opening A Current Account
It can be defined as such an account kept up by retail financial organizations that pays premium however can’t be utilized the money as cash or by giving a cheque. This account is the most extensively familiar sort of deposit account. We can also say an account open in commercial bank, for empowering saved amount and investment is called as a Saving Account. Savings Account is most common type of bank account which is provided to the individually to encourage people for saving. The main purpose of saving accounts is to make understand the people which kind of saving play role in your life. Customers can easily create their saving account in any public-sector or private-sector bank.
- It provides you net banking, mobile banking, ATM, debit card, FD, online insurance and many more facility.
- NEFT, RTGS, E wallet AND IMPS ALSO offered by the bank.
- There are some customized accounts which are especially for children, women and students. They can open their account minimum at 500.
- Those who come under below the poverty line they can get zero balance account facility that means you can open your account at zero balance.
- You can open your saving account in government sector on minimum 1000/-
- If you want to open your account in private sector you can create it only on 1000 rupees.
- You will get 4 percent interest per annum, if you keep saving account.
- Customers acquire pass book facility so that you can update yourself by your account details.
You May Like To Read – Top 10 Banks To Open Savings Account In India
Current Account VS Savings Account Major Things To Know
|Facts||Current Account||Savings Account|
|Suitable For||Businessman Or Company||Individually|
|Transactions||Requirement Of More Than One Transactions||For Making Future Save And Convenient|
|Interest Rate||No Interest On Deposit Amount||Depends On Deposit Amount|
|Amount||Higher Amount Mandatory||Smaller Amount Mandatory|
|Withdrawals||Unlimited Withdrawals||Limited Withdrawals|
|Overdraft||Facility Of Overdraft||No Facility Of Overdraft|
|Pass Book||Pass Book Is Not Available||Pass Book Is Available|
A current account is created on the purpose of day to day transactions and generally satisfied by the businessman or firm, while a savings account are opened for the individual purpose. Each bank offers different facility and service it depends on the person which is perfect match up with its requirements.