Are you willing to know the detailed information about the Current Accounts versus Saving Accounts? Here is the article which provides you the detailed information about the Current Accounts versus Saving Accounts. A savings account is a deposit account which allows limited transactions, while a Current Account is meant for daily transactions. Suitability.
The basic objective of the current accounts is to provide flexible payment methods to the business people and entities. These payment methods include special arrangements such as overdraft facility, accommodation of standing orders, direct debits, offset mortgage facility.
Transactions:-
Usually saving accounts have low transactions while current accounts have large transactions.
Handling:-
Savings accounts involve personal handling of assets, while current accounts are aimed to make the account holder free of personal handling of liquid funds. The current account facility helps the business to run without hurdles due to nonavailability of funds and short term deficits.
Interest Income:-
Usually, the current accounts don’t earn interests. The saving accounts earn around 3.5% interest at present in India. This interest rate is now deregulated in India, so banks themselves define what rate of interest they would pay to their customers.
Overdrafts:-
As discussed above saving accounts have no overdraft facility, current accounts have. The money can be borrowed for short term and to be paid back with interest.
Minimum Balance:-
Usually saving accounts need a minimum balance in the banks to keep the account active. In Current accounts, there are no Minimum Balance requirements.
