Current Account v/s Savings Account

If you are wondering about what is the difference between current account and savings account, here is the answer:

A savings account allows you to deposit your savings with the bank while earning you interest on the same, whereas a current account enables depositing money to carry out frequent business transactions.

One of the main factors that make a saving account and current account different is the minimum balance requirement. The minimum balance requirement for savings accounts is usually low. Some banks even offer zero balance saving accounts facility, where you do not have to maintain any minimum balance. For current accounts, minimum monthly balance requirement is relatively higher and usually starts from Rs. 10,000.

Benefits of a current account:
 

• Used for business purpose
• Allows unlimited transactions
• Prompt business transactions
• No limit on cash withdrawals
• No limit on deposits made in the home branch
• Enables business owners to make direct payments via cheques, demand drafts, or pay orders.
• Offers overdraft, internet banking, and mobile banking facilities.

Benefits of a savings account:
 

• Accrues interest on the deposit amount
• Helps in building emergency funds
• Low minimum balance required
• Safe way to keep your money
• Helps in achieving financial goals
• It is the first step for availing credit from a bank
• Enables instant payment for purchases
• Automates bill payments
• Keeps track of your income for income tax purposes