Difference between AU Bank Savings Account and Current Account | AU Small Finance Bank
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What is the Difference Between Current and Savings Account?

    Savings and Current Account are types of bank accounts that serve specific purposes. Today, anyone can open a Savings Account to deposit surplus income and earn interest on it. Whereas Current Account is specifically meant to meet the banking needs of business entities and entrepreneurs who may need to carry out multiple transactions every day. 

    This blog will explore the finer differences between Savings Account and Current Account.

     

    What is a Savings Account?

    It is the most basic Bank Account type that you can open with any bank or financial institution. A Savings Account lets you park your idle money, thus keeping it safe. Depositing funds is the best option rather than hiding them in your home’s locker, where the chances of theft are more. 

    Whenever you open a Savings Account, the banks generally give you a Debit Card that offers easy access to money through ATM withdrawal, plus you can also get your hands on offers by top brands. Opening a Savings Account also helps you earn interest on your deposited funds. For instance, our AU Savings Account lets you earn interest at 7% p.a., which is credited to your account directly through Monthly Payouts. 

     

    What is a Current Account?

    A Current Account is designed for businesses to manage daily transactions like cheque issuance, deposits, fund transfers, withdrawals, etc. Every individual who wants to start a business must open a Current Account with a bank. The account can be operated by public and private companies, proprietaries, associations, trusts, etc.

     

    Difference Between Savings Account and Current Account

    A Savings Account is different from a Current Account in many aspects. Below are some of the key pointers:

     

    Purpose of opening the account

    There are several reasons why people open a Savings Account. Some people want to secure their funds, save for short-term goals, or simply want to build up an emergency corpus. Savings Account help you to earn high interest payouts. On the other hand, the primary purpose of having a Current Account is to conduct frequent business/financial transactions.

     

    Minimum balance in accounts

    In the case of a Savings Account, you must maintain a minimum balance. If you fail to maintain the required amount, the bank may deactivate the services. Similar is the case with the Current Account, but the minimum balance requirement is generally lower than a Savings Account.

     

    Interest earnings

    Under Savings Account, interest on savings is earned by the account holder, but in Current Account, you don’t get interest payouts as the deposited money is used for business transactions. If you open an AU Savings Account, you can earn interest at 7% p.a.

     

    Access to a range of services:

    By opening an AU Savings Account, you can avail several benefits. You can apply for various products like Mutual Funds, Demat Accounts, Insurance, etc. Current Account users can avail of Overdraft facility, with the amount decided based on your three-month turnover in the Current Account and the average balance maintained.

     

    So, now that you know the difference between a Savings Account and a Current Account, you can get started with the account opening process instantly. Visit your nearest AU Bank Branch to open a Savings or Current Account.

    If you prefer digital, with the help of our Video Banking facility, any 18+ individual with the necessary KYC documents can open a Savings Account online too. All business enterprises can apply for a basic Current Account online by filling out the online form. We will then contact you to complete the documentation.


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