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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.

Saving account vs Current account

Saving account

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 For example, up to 20,000 can be withdrawn from the bank in a day.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?

  • Native or non-native Indians can open a savings account.
  • Educational institutions can open savings accounts.
  • Societies and associations can open savings accounts.
  • If a minor wants to open an account, his/her parent or grand-grandparent has to be made his guardian at that time.
  • Hindu undivided family and trust can open the account.

Who cannot open a savings account?

  • A company in partnership can not open a savings account.
  • Any business concern cannot open Savings Account.
  • A government department even cannot open a savings account.

Advantages of saving account:

  • Money is secure in the bank, and the user does not worry about losing money.
  • If you have invested money in gold or property, you cannot convert that investment into money quickly; it takes time. User can withdraw money from the bank whenever you need money.
  • Users can pay using a check, card, and another main facility to pay is online banking. By using online banking, users do online shopping and also transfer money.
  • Users can earn interest on the money deposited in the account.


  • This account is not suitable for business purposes.
  • The partnership firm and companies are not eligible to open a savings account.

Current 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?

  • A current account can be opened by any person who needs to do more transactions, such as business-related transactions.
  • Hindu undivided families can also open a current account.
  • Private companies, public companies, and partnership farms can also open a current account.
  • Educational Institutions, hospitals, trusts, government departments can open a current account.

Advantages of current account

  • This account is business-friendly, in which users can do more transactions daily.
  • Provides security to cash.
  • This account is easy to operate as the user can make payments through cheque, online banking, and card.

Disadvantage of current account

  • No interest is paid by the bank on the deposits.

Documents required for opening current account

  • Application form with the photograph.
  • Pan card of the user.
  • Address proof of user.
  • If the account has to be opened for the company, then the certificate of incorporation and memorization of the association will have to be given.
  • If a firm is a partnership firm, a copy of the partnership agreement is needed.
  • Identity proof and residence proof of all the partners.
  • A check has to be given from the existing savings account of the user.
  • Contact details such as an address, email have to be given.

Differences between saving account and the current account

Saving account Current account
This account is suitable for the individual. This account is suitable for business purposes.
This account is opened with the purpose of investment and saving. This account is opened for the purpose of performing business transactions.
Interest is given by the bank on deposited money. Interest is not given by the bank on the money available in the account.
Users can do limited transactions per day. Users can do unlimited transactions per day. There are no restrictions on daily transactions.
The firm or companies which are in partnership can not be able to open a savings account. The firm or companies which are in partnership can able to open a current account.
Overdraft facility is not provided in this account. Overdraft facility is provided in this account.

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