Difference Between Savings Accounts and Current Accounts
The below table explains the differences between Savings Account and Current Account,
| Savings Account | Current Account |
|---|---|
| Meant for personal purposes such as deposit monthly income | Meant for businesses or firms who want to conduct various business-related transactions |
| The minimum balance required is usually low in comparison | The minimum balance required is usually higher in comparison |
| Banks usually do not allow overdraft facility | Banks provide overdraft facility |
| Interest on savings is earned by the account holder | Generally, no interest on deposits because the deposits to be used in business transactions |
| Withdrawal is limited based on Bank policies | Generally, there is no limit on withdrawals |
Savings accounts are the deposit accounts held at a bank. Savings accounts offer account holders interest on their deposits. This is the best option for the customers to save their deposits. Customers can easily withdraw those savings in a very short time if needed.
Current accounts are used by the traders and entrepreneurs who need to access their accounts regular basis. The current account is used for very frequent transactions. Banks usually do not offer interest for current accounts. Special services are offered to the current account holders to withdraw more than the account balance, which is known as an overdraft facility.
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