While a Savings Account is one wherein you deposit your savings with the bank and earn interest on the same, a current account is one where you deposit money to carry out business transactions. In this blog, we will explore the finer differences between the two.
Savings account mein account holder ka purpose hota hai ki wo apni savings ko safe rakhe aur uspe interest earn kare. But with a Current Account, the purpose of the account holder is to conduct frequent business/financial transactions.
A savings account can only be opened by individuals for their use. It is generally opened for a short term to save money for vacations, make big and small purchases, etc. Current account is opened by businesses or firms who want to conduct various bank transactions according to the need of their business.
Savings account mein apko kuch amount ka minimum balance rakhna hota hai jisse apka account deactive na ho. Similar is the case with current account; but the requirement for minimum balance is generally lower in savings account.
Under savings account, interest on savings is earned by the account holder, but in current account, banks generally do not provide interest on deposits because the deposited money has to be used in business transactions.
So, now that you know the difference between both account types, next time, just walk into the bank open your preferred account in a jiffy!