differences between current and savings account
EXPLAIN IN DETAIL
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Answers
Answer:
Explanation:
A savings account opened at a bank is a basic type of account that allows you to deposit money and keep it safe while earning moderate interest on the balance maintained in the accounts. Key features of Savings Account are mentioned below.
A Savings Account provides fixed returns on your deposit. The rate of interest on a Savings Account varies from bank to bank, and it ranges between 0.50% to 7.50%.
With a Savings Account, you need to maintain a low minimum balance in your account to keep your account activated. Some banks also offer Zero Balance Savings Accounts.
Account-holders can withdraw funds from a Savings Account using ATM/debit card.
Savings Accounts are mostly suitable to save funds for emergencies. However, it does not provide an overdraft facility to the account holders.
Current Account
Current Account is a type of account that is opened by the people in business who have high regular transactions with the bank. Account holders can open the current account to ease off daily business transactions and get the following benefits with their current account.
These accounts offer limitless cash withdrawal facilities and thus do not provide any interest.
As a current account has no limits on deposits and withdrawal, therefore it involves high fees for facilitating corporate transactions.
Account holders can also get overdraft facility with the Current Accounts.
You can make payment via cheque, demand drafts, pay orders etc. for making payments against Current Accounts.