Savings Account Vs Current Account

Banking has really enabled our lives to breathe easy through all the variety of features we get - the features we can't live without. But how often you find yourself scratching your head whenever banking related questions come across" Yes it is pretty often ain't it" The most common and basic question out of them is related to type of banking account and what it means. Generally all banks offer two main types of accounts - savings account and current account. The choice entirely depends upon your need and financial portfolio. Let us look at the differences between these two types of bank accounts:

Savings Account
Savings account enables all sorts of people (individuals or business men) to save money by keeping it in the bank and depositing small amounts (mostly) from time to time. In lieu of having money in your account, banks offer a flat interest rate for your balance amount. Interest rate of course entirely depends upon the nature, type and size of the bank and it varies from bank to bank. Some banks also require people to maintain an average quarterly balance or just a small amount of balance all the time. Again, this entirely depends upon the bank. If you are going to open a savings account, this is one area where you need to concentrate the most. Savings accounts can also have certain withdrawal amount or shopping amount limitations per day. Most banks don't offer an overdraft facility on savings accounts. Overdraft facility basically enables one to withdraw more amount than that present in the account.

Current Account
A current account is primarily opened by people for business purposes. Most banks don't offer any amount of interest on current accounts. However since current accounts require constant commercial transactions, they do come along with a horde of features that other accounts stand limited to. For starters, many banks don't require current account holders to maintain any sort of average quarterly or quarterly balances enabling more freedom to the account holder. Moreover, current account holders benefit from bank overdraft facility, unrestricted execution of financial transactions (mostly withdrawals and transfers), currency trading, international transaction capability etc. Some banks even require current account holders to deposit a minimal amount of money at a predefined interval to enable providing services for the same.

Quick Review

Feature/Service	Savings Account	Current Account
Business Banking	Not Applicable	Yes
Minimum Balance	Required	Higher
ATM Cards	Available	Available
Interest Rate	Applicable	Mostly No
Bank Overdraft	No	Yes
International Transactions	Depends	Yes
Deposit Interval	Not Applicable	As per bank
Daily Withdrawal Limits	Applicable	Not Applicable, Mostly