Difference Between Current and Savings Bank Account

Difference Between Current Account and Savings Bank Account

 Friends, when we go to withdraw cash in ATM, often we see an option whether you want to withdraw money from Saving Account or withdraw money from Current Account.

 Or when we are asked to open our account in the bank, then we ask which account to open Saving Account or Current Account.

Difference Between Current Account and Savings Bank Account
saving vs current accounts

 In this, we are confused about what is the difference between this Saving Account and what is a Current Account (Difference Between Current Account and Savings Account). Whether we can open this account or not.

 Although many types of accounts are opened in the bank, but mainly only two accounts are opened.

 1. Saving Account
 2. Current Account

 Today I am going to tell you what is the difference between a Saving Account and a Current Account, after knowing which you will be confused about what is a Current Account and what is a Saving Account.

 Who can open Current Account & Saving Account

 Anyone can open a Saving Account, it is useful for their personal use, in which we deposit our saved amount. The normal account which is opened is a Saving Account.

 Everyone cannot open a current account. Current account is opened only for doing business related transactions.  But there is a businessman who has a small or big business, the same people can open this account, not everyone can open this account.

 whose name can you open Current Account & Saving Account

 We open a Saving Account in my own name. Suppose I want to open a savings account, then I will open it in my own name.

 We can have more than one name added to a saving account, that is, we can open a joint account.

 Talking about current account, you can open an account with the same name as the business you are running.

 Suppose you run a shop, then you can open a current account in the bank with the same name as your shop and the person who is running that shop will be the authorized signatory of that account.

 Authorized signatory means that the person's signature will be lenne in the bank, a check will be passed from the signature of that person, more work will be in the same current account.

 More than one Authorized Signatory can be added to a Current Account, that is, a Current Account can also be opened as a joint account.

Current account

 Current Account

  • In the name of the Society, in the name of the firm
  • In the name of Cooperative Limited
  • In the name of Private Limited

 We open in the name of an organization, do not open in the name of any person, add a person as authorized signatory in it.

 Transaction Limit of Current Account & Saving Account

 You can transact only up to a limit in Saving Account, you can transact in it five times a month, whether you have to deposit money or you can withdraw money.

 If you do more than 5 transactions in a month, then you have to pay some charge to the bank.

 In the same way, if you withdraw cash from the ATM, you can withdraw the cases from your bank's ATM 5 times and from other bank's ATM three times.

 If you do more transactions than these, then you have to pay transaction charges.

 Because the main purpose of saving account is that we save money when needed and we withdraw money when needed, so we have been given some limit.

 Talking about the current account, you can do unlimited transactions in the current account, which is the biggest feature of this account.

 You can deposit money in this account any number of times in a day and you can withdraw money out of it any number of times.

 You can transact any time from ATM and withdraw money from it any number of times, you will not have to pay any charge for it.

 interest rate

 You get an interest for the money you have deposited in the Saving Account. Today the government banks which are paying 3.30% interest and the private banks pay a little more interest from 4 to 6%.  Goes

 Along with the money that you deposit in it, you also earn a lot of money and you get its interest.

 Talking about the current account, you do not get any interest in it because there are very quick transactions in it, in this we make many transactions in 1 day, so we do not get any interest.

 Overdraft facility

 You do not get any overdraft facility in Saving Account, this means that you can withdraw as much money as you have in your account, you cannot withdraw more money than that.

 For example, you have ₹ 10000 deposited in your account and if you need ₹ 15000, you can withdraw only ₹ 10000 and not ₹ 15000.

 Talking about the current account, you get an overdraft facility, meaning that the bank gives you a loan in such a way that the overdraft facility which is your current account is given by looking at the turnover and transaction.

 It has an limit of one lakh, two lakh, 500000 limit is fixed that you can withdraw such amount if you need it.  Which the bank is giving you as a loan, whenever you have money, you will fill that money with interest.

 It also gives a very good facility for a bank current account that if your business requires a sudden payment from anywhere, then you can get age.

saving accounts

 Minimum Balance Mantain Saving Account and Current Account

 In a Saving Account, you have to keep a minimum amount balance, however, there are many types of savings accounts too.

 Student Account This is some kind of account in which you do not need to maintain balance, we can open them from ₹ 0.

 But the limits of their transactions are slightly different.

 If you talk, there is a normal saving account that is opened in a general account, in which you have to maintain a minimum balance, which is a minimum balance which is a government bank, from ₹ 500 to ₹ 5000, whereas in private banks a little more.  Minimum balance has to be maintained.

 If you do not maintain this minimum balance monthly, then you have to pay some charge as penalty.

 Talking about current account, you have to maintain minimum balance. Current account also has many types according to its features.

 In a normal current account, you have a minimum balance from ₹ 5000 to ₹ 1000000 in a government bank and it is slightly higher in private banks.

 If we do not maintain minimum balance even in the current account, then we have to pay penalty charge.

 So friends, in this main Difference Between Current Account and Savings Account , after knowing that all your doubts will be cleared which Savings Account is Account and which Current Account and which account should be opened and what are its benefits.  Friends, how was our post today, tell us by commenting it.

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