Difference between Savings Account & Current Account
Savings Account & Current Account both are designed for different purposes and bears different features.
A Savings Account is meant for those Individuals who want to keep or save money for emergencies whereas a Current Account is used for regular transactions of a Company or a Firm.
Key Differences between a Savings Account & a Current Account are:
Savings Account are basically opened by salaried employees or by those individuals who has monthly income whereas Current account are opened by Businessmen for doing their Business Transactions.
A Savings Account provides Interest on your Deposits from 0.5% to 7.25% which varies from Bank to Bank whereas a Current Account offer limitless cash withdrawal facilities and does not provides any interest.
At Savings Account customers need to maintain a low minimum balance to keep the account active whereas at Current Account has to pay high fees for facilitating Business Transactions.
Savings Account are meant for saving funds for emergencies & they don’t get Overdraft Facility whereas Current Account Holders gets Overdraft Facility.
Banks charges nominal charges from the Savings Bank Account Holders for proving various services like ATM facility charges, SMS Alerts Charges etc., whereas Banks Charges much higher charges from the Current Account Holders.
A Savings Bank Account holder can do limited number of transactions in a month whereas a Current Account Holder can do unlimited number of transactions in a month irrespective of the certain criteria.