Saving Account Versus Current Account

By Author: Neha Sharma
Total Articles: 170
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There are several types of banking accounts that can be used for different purposes and for different kinds of people with their respective modes of investing. Each of these accountshas different benefits, features and offers which can be utilized to suit various needs. In this article, we give you the different advantages and disadvantages of saving and current account.

• Interest Rates
Interest rates are only applicable to savings accounts. This interest is deposited in this account on a quarterly or half yearly basis. While some selected banks do offer special interest rates to certain types of current account as a plus feature, most of the banks offer beneficial interest rates only to the account of savings. As most of the general public invest in a former account, these rates will be beneficial to their investing in this account as compared to the account for the current type.

• Type Of Customer
This account is normally used for businessmen and for many company services. It is never used for investments or saving purposes but rather for regular deposits and unlimited transactions. Saving accounts ...
... are normally used only to invest for saving purposes and the possibility of investments in the future. With the interest rates for this account, it is beneficial to earn more just by investing in such an account.

• Bank Transactions
Savings accounts have a limited number of bank transactions that can be undertaken in a day or in a month. It also has a limited amount of funds that can be withdrawn in a day. Most of the additional services like transferring of funds from one account directly to another are charged at a certain percent or amount with each value of transaction. With Current Account, these transactions are unlimited and do not have certain restrictions like day limit, month limit and amount limit. Also, banking transactions for this account can be directed to the customer or business account directly through cheques, demand drafts or pay orders etc. with no extra charge on these services.

• Minimum Bank Balance
In this account, there is no special minimum average balance which is needed in the account that is mostly stipulated by the bank. For the account of savings, there is stipulation by that bank that includes a minimum fund balance in the account. The value of this minimum fund normally increases with additional services like cheque book facilities and banking cards.

• Bonus Facilities
For both the accounts, most institutes offer the services of banking cards that include ATM, credit cards and debit cards. Other benefits for this account include over draft facilities and information on money transfer to international accounts during preferential time periods where the currency conversion is ideally the best for the account holder. For savings account, special features include safe deposit locker and mobile banking apps and related facilities that can be accessed at anytime and from anywhere.

Author Bio :- Neha Sharma is a finance student who has considerable information about the savings and Current Account . She is delighted to share all the relevant information about the differences for these accounts.