Question

what is the difference between the savings account and current account

Answer 1

Savings Account is the most common type of deposit account. An account held with a commercial bank, for encouraging savings and investments is known as a Saving Bank Account.

A deposit account maintained with any commercial bank, for supporting frequent money transactions is known as Current Account. 

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 % .