Difference between Saving account and Current account
A bank is a safe place for keeping money secure, and a person needs an account to keep money in the bank. There are two types of accounts one is a saving account, and another is the current account. Both accounts provide many facilities to the user, but they are not similar. Let's see their differences.
It is a type of deposit account, which can be opened in any bank. People can manage savings and also make the investment in that account. This account is very important for every common person. The best facility provides by it is interest paid by the bank. The bank gives us interest on the money that is deposited in the account. If the account is in a government bank, then they give 3.5 percent interest on the deposit. If the account is in a private bank, then they give 4 to 6 percent interest on the deposit.
Bank also provides many facilities such as the facility of ATM card, check book, debit card, mobile banking, and net banking for money transactions. People can shop online by using online banking. Two passport size photos, Address proof, and identity proof are required to open an account in the bank.
Every bank has minimum balance requirements for a savings account and different criteria to maintain the minimum balance in the account. Private Banks require you to have a higher minimum balance than government banks. Minimum balances are different in different areas, for example, the minimum balance required in HDFC bank is 10,000 rupees in the Metro area; 5000 rupees in the semi-urban areas branches, and 2500 rupees in the rural area branches.
The bank also provides the facility of a zero balance account. A '0' balance account means that the user needs not maintain a minimum balance in the account. Users can keep zero balance in that account. A zero balance facility is provided generally for the students, and salary accounts. Besides this, every bank has a daily withdrawal limit. For example, up to 20,000 can be withdrawn from the bank in a day.
Who can open a savings account?
Who cannot open a savings account?
Advantages of saving account:
The current account is used for the transaction of money in business. Interest is not paid in the current account. The minimum balance has to be maintained in the current account. For example, in today's date, 10000 rupees has to be maintained in SBI.
If you want more facilities from the bank, the minimum balance requirement changes accordingly. User can do unlimited transactions in current account per day. Bank provides checkbooks, ATM cards, Debit cards, and online banking facilities to the user.
Users can check account details through online banking, and users can also make bill payments like water bills, electricity by using online banking. Overdraft facility is provided in the current account. This means in the case of an emergency if there is not enough money present in the user's account, the bank will give an additional amount as per the requirement of the user.
Who can open a current account?
Advantages of current account
Disadvantage of current account
Documents required for opening current account
Differences between saving account and the current account
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