Saving account is a account in which you deposit your savings with any scheduled bank for purpose of earning interest on the other hand current account in current people who carries any business deposit their money to carry out it's business transactions like sending or receiving money or avail overdraft services. Here we have for you major differences between saving and current account

 

 

1. Purpose of opening

In the saving account, account holder want to protect their money from house thieves and they also want to earn interest on their deposits. While current account holders have to do lot of transactions on daily basis and this not possible under the saving account so they have to open current account because this account is specially designed for the business entities. Anyone can open saving account but current account can only opened by those who can prove that they are holding any business.

2. Accounts is useful for

Saving account is useful for those individuals who wants to save their money for fulfilling their any purpose like vacations, maje any big or small purchases , saving money for children education and their marrige or their future after taking retirement from work. As I mentioned above current account is specially opened by business or firms who wants to conduct lots of transactions on daily basis as per their business or work requirements. Money is for saving under saving account and money for growing under the current account.

 

 

 

3. Requirement of maintaining minimum balance

Saving or current account holders have to maintain some amount of money on monthly or quarterly basis to keep their account active otherwise they have to pay penalties and after some time their account became dormant or closed by the bank . But saving account holders have to maintain less minimum balance as comparison than current account holders. Public or Government banks charges up to Rs 5000 for opening saving account and Private banks charges upto Rs 25000 for opening account. 

This is all about the major differences between a saving account and a current account. If this article was useful for you than hit share this with your family and friends. Kindly follow us . Your support will motivate us to brings more informative articles for you. 

 

4. Interest and other charges 

Saving account holders is eligible to earn interest on their deposit money with bank. Interest rates under this scheme various according to holders amounts of money deposited into bank. Holders also have to pay various service charges lived by bank like Debit card charges , remittance fees, deposit fees etc. Under this scheme overdraft service is not provided by the bank to their customers. On the other hand bank have not to pay any interest to their current account holders instead this customers have to pay annually charges for using facilities under this account. Same like saving account holders current account holders have to pay debit card charges and other charges but current account holders can avail the overdraft facilities for completing their business requirements. But for availing overdraft service you have to do some number of transactions with bank and have a good CIBIL score.