What is the difference between Savings and Current Account?

What is the difference between Savings and Current Account?

Very few people know the answer to this question, but every person who has a bank account, all of them should know what is the current account? And what is a saving account? And what is the difference between the two? If you want to know the answer to this question, then you are at the right place.

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Here we will get detailed information about bank account details and their benefits and know if you go to open bank account. So which type of account should you open? This question is very important if you do online bank transfer, or make online purchases. So who is better for you saving and checking bank account.

If you do not know then let me tell you Current account means current account and Saving account is called savings account. Before knowing about what is the difference between these two and which account you should open, let us know how many types of bank accounts there are in India.

What is a Saving Account?

Saving account is a bank account where a person deposits the money saved from his earnings. This type of account is very important and important in the answer of a common person because a common person saves little money and deposits it in the bank so that he can improve the future.

If a person opens a savings account, then the bank pays annual interest on the money deposited by him. This interest can range from 3% to 6%. But it is used only for personal work and it is not a suitable account for a business person. Because there is a transaction limit on the savings account.

What is Current Account?

Current account, which we also call current account, is an ongoing account. If any person has to do daily transactions, if he wants to transact money, then he opens a current account. Because it is used for business and business and there is no limit on how much money you are withdrawing or depositing in a day.

No interest is received from the bank to run the current account, on the contrary, money has to be paid to the bank to manage the account. In such a situation, if you do business then you will need this type of account.

What is the difference between savings account and current account?

Every day this question comes in the mind of some person who goes to open a bank account, what is Saving vs Current account? And whenever all of you go to open an individual account, there is generally only account saving.

If you go to withdraw money through debit card at ATM, then this question is always asked what kind of savings account is or current account and when you select any from it, then only you can do further transaction.

These two types of accounts are offered by almost all banks ICICI, HDFC, SBI and all others, but both the accounts are for different types of people. Saving account is for everyone and any person can open this account but current account can be opened only by businessman type person. Here I will tell the difference between the two so that you can understand better.

Saving Accounts:

Such accounts were created so that people could save money.

In this, if a person deposits money, then he is given some % interest every year by the bank. For example, if you keep Rs 100 in your account and the bank gives 4% interest, then in a year it will become Rs 104.

Saving account can be opened by a single person or join account together with two persons and in this you have to maintain the minimum amount given by the bank.

Current Accounts:

Current account is given only to such persons who do regular transactions. Especially the businessmen who do many transactions daily.

All the small firms, businesses, realtors or any businessman, they open only the current account.

No interest is available in this type of account. Bank no interest is given by the banks.

There is no transactions limit in this, you can transactions as much as you want, but you have to provide proof for the account that for what reason you are doing this transactions.

Types of bank in India

There are more than 100 government and private sector banks in India where individual or business account can be opened. Here I will tell about some common bank account types, about which every common person should know.

1. Women Saving Accounts

Almost all banks offer special saving account for women, which has many benefits attached to women and they can take advantage of it. Banks offer such special programs to financially support women empowerment in India. Very few people in rural area know about such accounts and if you want detailed information about it, then contact your bank.

2. Student Saving Accounts

Students who study in any class can open all bank accounts. We all have opened scholarship student bank account. To open such an account, the permission of the school is needed only then you can open the student saving account. This account can be opened with zero balance.

3. Kids Accounts

If someone wants to open a separate account for their child, then you can take advantage of this facility of the bank. Such accounts are meant to save money for the future of the child. If you also want to save some money for your child, then you must open the Kids bank account.

4. Current Accounts

Such accounts are for business or for a person who does a lot of transactions. Current account is not for any common person and all banks have their own terms & conditions for current account. If you satisfy that condition then you can open current account.

5. NRE Saving Accounts

If there is a person who is from India origin or Indian but lives in any other country, then he can open NRE saving account. Many international benefits are available in this such as money transfer, money conversion etc. It is necessary to have at least two persons for this account only then they will be applicable for NRE.

6. No-Frill Saving Accounts

You all know that every saving account has its own criteria that you have to always keep at least 500, 1000 or 10000 rupees in the account. If you do not do this then banks charge for it. In such a situation, No-Frill is an account in which you do not need to keep any minimum amount.

7. Senior Citizen Savings Bank Account

Banks offer a different type of saving accounts for those whose age is 60 years or above. In which there are some such benefits that the senior citizen should get, they get it. After retirement of such accounts, you can get many benefits.

Now we come to our question that what are the differences between Saving account vs current account and what is its effect on the bank accounts of a common man.

Friends, this is the difference between Current account vs Saving account and when you can open which account. If you are a common person then savings account will be right for you, you will also get interest in it but if you are a businessman and do daily transaction then you can open current account. If you have any question or suggestion then you must write in comment.

Thanks!