Difference between Saving Account and Current Account?

Difference Between Saving Account and Current Account?

Having a bank account has become an important need of every person today. From salaried employees to farmers and from housewives and students to businessmen, there is always a need for a bank account. Two types of accounts are opened in every bank – Saving and Current account, even though both these accounts are used for deposits and transactions, but they are not the same.

Savings Account -:

This account is used to settle personal transactions of common people but there are some limits on transactions on this account. Normally a maximum of 5 transactions can be done from a savings account in a day.

The bank offers check book, debit card, ATM card, internet banking and mobile banking facilities to the savings account holders, most of which are free of cost.

You can avail facilities provided by the bank such as mobile banking and internet banking to pay essential bills, transfer funds, do online shopping and debit card shopping and account transfer Can do things like extracting.

The bank also pays interest on the amount deposited in the savings account, and the rate of interest is 4 to 6 percent in most banks. In such a situation, before opening a savings account in the bank, it is beneficial to find out how much interest the bank is paying. Tax is also levied on the interest of the savings account, but there is also a provision of tax relief on the annual interest of Rs 10,000.

Generally, there is a condition of keeping a minimum amount in the savings account, which is determined differently according to the government and private banks.

Current Account -:

Where the savings account is for the common people, the current account is especially for the businessmen. There is no limit of transactions in this type of account i.e. any number of transactions can be done in a day.

On the amount deposited in the current account, interest is not available like a savings account, but a great feature of this account is that through this the bank provides money to the businessmen so that there is no hindrance in their business.

Another specialty of the current account is that through this account the merchant can withdraw more money than the amount present in it i.e. overdraft facility is provided by the bank in the current account. The amount that can be overdrafted from a current account is decided by the bank keeping in mind the turnover and profits of that account holder.

This account can be opened either individually or as a joint account. Current accounts are opened by companies, trusts, voluntary organizations, societies and authorities. Many such facilities are provided by the bank on the current account so that the account holder companies and institutions can easily do their work.

Such facilities offered by the bank include NEFT fund transfer, doorstep banking, demand draft or pay order issuance, free cash deposits and check collection and payments. Friends, now you have got the general but important information related to current account and savings account.

I hope you are aware of the difference between a savings account and a current account, that you would have liked this information and it would also be beneficial for you.

Savings Account VS Current Account -:

Interest is received on savings account by the bank whereas, this facility is not available on current account. It is necessary to have a minimum balance in the savings account, whereas, it is not necessary to have a minimum amount in the current account.

In a savings account, you are only allowed to withdraw up to a certain amount before the bank charges you for the service. In contrast, a current account allows you to withdraw and deposit money as many times as you like throughout the day, and that too without the involvement of a bank. A service fee was paid.

If you have a business or a business, then the current account is very beneficial for the transaction because the bank current account gives many facilities to the account holder, while the savings account does not.

CONCLUSION -:

I hope you have come to know what is the difference between savings bank account and current bank account and if you like this article then do not forget to share it with your friends and if you have any question then you can tell us. You can tell by commenting.

FAQs -:

Q. What is the difference between savings and current account?

Ans -: A savings account is opened to encourage and promote savings. A current account is designed to facilitate a regular or frequent transaction. Savings Account is an ideal option for anyone who earns a steady or regular income like salaried employees.

Q. What is a savings account?

Ans -: Saving Account is a deposit account which you can open in any government or non-government bank, here you can deposit your remaining money or you can deposit money for spending a month or you can also invest. Is.

Q. How much money can be kept in current account?

Ans -: Current account has a minimum monthly balance limit, in which you have to keep at least that limit in your account. This limit is of 5000 to 10000 rupees in most of the banks. One special thing about this account is that in this the bank does not give any interest, but some service charges are taken in some accounts.

Q. What is savings bank account?

Ans -: Savings accounts are accounts maintained by retail financial institutions that pay interest but cannot be used directly as money (for example, by writing a cheque).

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