Present days no one to carry cash with oneself. For this requirement, we have to go toward cashless or digital transactions of the money. Digital transactions need a bank account. on the other hand, all other financial transactions are online these days, like salaries, bill payments, shopping, and all other works are online. Most people before starting their jobs and business open their bank accounts. So, knowledge about the difference between current account and saving account is very important.
But everyone has no proper knowledge about which bank account he needs for his job or business. Basically, the type of bank account is depending upon the banking needs of the person. For the right selection of the type of bank account, you have to know the difference between the current account and a saving account.
The most common type of bank accounts is current and saving accounts offered by every retail and private bank. In this article, we will discuss the features, and differences between the current account and the saving account. Which will assist you to choose the right bank account as per your requirement.
Current Account Vs Saving Account
|Current Account||Saving Account|
|No Interest on the money||Fixed interest on the saving|
|Suitable for the people who do business||Suitable for individual|
|Used for business, trading, etc.||Used to save money for future requirements.|
|No limit on the number of transactions.||Limited numbers of transactions are available for free.|
|Generally used for paying bills and other online transactions.||Mostly used for salary accounts.|
|High minimum balance needed in account.||Less minimum balance is needed in account.|
This type of bank account is used by businessmen, traders, entrepreneurs who make a number of transactions and receive payments. Mostly the current accounts are maintained by the companies or big firms and the investors who invest in SIP and Mutual funds. A current account is never used for the purpose of savings and investments. In such kinds of accounts no limit on the transaction and money deposited through transactions on a particular day.
The account holder of the current account is free to withdraw the amount without giving any intimation to the bank. In currents accounts bank does not give interest on the money. In the current account, a high minimum balance has to be maintained in the account as a balance.
The current account provides a facility to the account holder to deposit cash or cheque at any different bank branch which is very helpful to receive payments from any customer. From all the banks ICICI bank is very suitable for the current account facilities. A smooth and seamless experience of banking is provided by ICICI Bank to its Current Account holders.
Key points of current account
- Unlimited transactions are available.
- A minimum balance is required.
- No interest on money deposited in the account.
- Unlimited withdrawal.
- Can withdraw more cash from the available balance.
Features of current account
- A checkbook facility is available for the account holder.
- The current account holder is free to deposit any kind of draft.
- The transactions are very smooth.
- No restrictions on the number of transactions.
- SMS facility available for all the transactions.
As the name indicates, A Saving account is used for saving purposes. This type of accounts is used by salaried people who want to save money for the long term to full fill their future goals. Saving accounts offer a fixed interest rate for the saving account holders. This means saving bank holders earn money on their deposited money in the bank. When banks give interest, it also imposes some restrictions on the user for transactions.
A saving account is a very basic type of account that can be opened in any bank by any person. The holders of the saving accounts get a pre-specified interest on their deposited money. A less minimum account balance has to be maintained in the account. Users are able to withdraw their money at any time with a simple process.
But there are some restrictions on the withdrawal by RBI. According to RBI savings bank, account holders can be allowed to make only 150 withdrawals annually. Before 24/10/2011 The interest on saving accounts was decided by the RBI but now setting interest on saving accounts by the bank only.
Types of Saving Accounts
- Regular saving accounts.
- Zero Balance account.
- Women’s Saving account.
- Kid’s saving account.
- Senior citizen’s saving account.
- Family saving account.
- Salary-based saving accounts.
Choose a saving account as per need.
Key points of saving accounts
- Interest on deposited money.
- Limited transactions.
- 150 withdrawals annually.
- Less minimum balance.
Features of the Saving account
- A checkbook facility is available.
- Credit and debit cards are available.
- The interest rate on deposited money.
- Online transactions.
- Availability of SMS service.
The key difference between a Saving account and a current account
|Parameters||Current Account||Saving account|
|Purpose||Spending and immediate transactions.||Savings and to achieve financial goals.|
|Suitability||Businessman, Traders, Investors, firms.||Salaried people who have a regular monthly income.|
|Interest rate||No Interest on deposit||3.5 % to 4 % per annum interest rate, subject to change.|
|Transaction limit||Unlimited transactions allowed||Limited Transaction allowed.|
|Minimum balance||Higher minimum balance.||Lower minimum balance.|
From the above article, we hope your doubts will be cleared about the savings and current account. If you want to do unlimited transactions. And want to start a business and trading a current account will be the best choice for you. If you are salaried or want to save money for the future then go for a saving account. currently, all the transactions are done with the help of credit cards and debit cards. cards are also very important these days because everyone promotes cashless transections.
This is all about the difference between current and saving accounts. We hope you understand the concept very well. If you have any quarry then feel free to contact us with comment.
If you are interested to read about Lok sabha and Rajya sabha then read our article Difference between Lok Sabha and Rajya Sabha
This type of bank account is used by businessmen, traders, entrepreneurs who make a number of transactions and receive payments. Mostly the current accounts are maintained by the companies or big firms and the investors who invest in sip and mutual funds.
Features of current account
A checkbook facility is available for the account holder.
The current account holder is free to deposit any kind of draft.
The transactions are very smooth.
No restrictions on the number of transactions.
SMS facility available for all the transactions.
As the name indicates, A Saving account is used for saving purposes. This type of accounts is used by salaried people who want to save money for the long term to full fill their future goals. Saving accounts offer a fixed interest rate for the saving account holders.
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