What is the difference between a Saving and Current bank account?

When we go for opening a bank account, one thing strikes to mind that is which account is most appropriate for us either it is saving account or a current account.

Also people get confused while withdrawing money from ATM when they see the choose “Current Account or “Savings Account”. They both are different type of accounts offered for different purposes. Now, let us know the basic differences between savings account and current account.

1.Definition

Savings Account As the name indicates, this account is meant for saving purposes. Any individual either single or jointly can open a savings account.
Current account is mainly for business persons, firms, companies, public enterprises etc. This is useful when a person does a number of business transaction on daily basis.

2.Suitable For

Saving account is best for individuals or we can say for salaried individual.
Current account is best for companies or business man.

3.Purpose

The main purpose of saving account is to encourage the people to save from their salaries.
The main purpose of current account is to help the individual where more than one transaction is required.

4.Interest

In saving account, interest is there on deposited amount.
In current account, no interest is there on deposited amount.

5.Minimal amount

To open a saving account, smaller amount is required.
To open a current account, higher amount is required as compare to amount required to open saving account.

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