DIFFERENCE BETWEEN SAVINGS AND CURRENT ACCOUNT
WHAT IS CURRENT ACCOUNT ?
A current account is best suited for those who frequently need to make financial transactions, such as traders, business people, and entrepreneurs running their companies. This account type typically offers features like online banking and mobile banking to make it easy to manage your money on the go.
WHAT IS SAVINGS ACCOUNT?
A savings account is a type of account intended to help people save money. The account holder can deposit money into the account, and the money in the account earns interest. Savings accounts can be opened by individuals or groups of people who want to save money for short-term or long-term financial goals.
Suitability
CURRENT ACCOUNT
A current account is a type of bank account that is typically best suited for people who conduct a lot of business transactions on a daily basis, such as traders and businessmen. With a current account, you can deposit large sums of money, which can be helpful for covering business expenses.
SAVINGS ACCOUNT
Savings accounts are great for people who have a regular monthly income and want to save some of it. In order to save, you need to be disciplined about saving, not withdrawing your money too often, and have a disciplined spending pattern – in other words, spend less than you earn.
Transaction Limit
CURRENT ACCOUNT
There are no restrictions on the maximum number of transactions.
SAVINGS ACCOUNT
Limited number of transactions are offered.
Opening the Account
SAME REQUIRMENTS
It shouldn’t take very long to open either type of account! All you’ll need is some form of ID, like a passport or birth certificate, as well as proof of address. For example, a bank statement from another financial institution will work just fine. Of course, depending on how premium the account is, there may be a few extra requirements.
Withdrawal
current account
A current account holder can withdraw money any number of times in a day.
savings account
Biggest difference between current and savings accounts a person can withdraw money from a savings account only three to four times in a month.
Minimum Balance
current account
A minimum balance is a basic requirement that must be met and maintained for both savings and current accounts holders.
savings account
In order to open a savings account you must already have actual savings that you would like to enter into the bank.