Question

What are the different between savings account and current account?

Answer 1

Savings account is an interest-bearingaccount with certain limitations. Forexample, in the US you cannot withdraw money from it more than 6 times a month. Here is the explanation why. Current account is a "general-use"account on which you can write checks, use ATM/Debit cards and have unlimited transactions

Answer 2

Current account :-

• They facilitate regular business transactions .

• They don't have limit on monthly transactions .

• There is need to maintain a relatively higher minimum balance .

• It caters to business organisations .

• It doesn't provide any interest .

Savings account :-

• They are suitable to build emergency funds .

• They have limit on monthly transactions .

• There isn't any need to maintain a relatively higher minimum balance .

• Its suitable for an individual .

• It offers interest rates ranging between 0.50 % to 7.50 % .