Features that make the current account different from a savings account
Banking may be confusing for you, but it is not as tough as you think. For most people, the bank system is the introduction of banking accounts. Many banking products, such as different types of bank accounts, come with time.
Today, people are often confused between current and savings accounts. In this article, we will highlight the features of both online current account opening and savings accounts that set both accounts apart from each other.
Overview of savings account
A savings account is a basic bank account that helps you to earn interest over the balance maintained in your account. It is easy to deposit or withdraw money from the savings account easily.
Opening two or more savings accounts with various banks is also possible. The individuals can also open their joint savings account.
Savings account features
- It is easy to open a savings account with any public or private bank
- There are no restrictions for the savings account to open. You can easily open two or more savings accounts from the different banks
- The rate of interest on savings accounts varies from one bank to another. It is easy to withdraw the fixed sum of the amount in the day without any hassle
- You have to maintain the minimum monthly balances every month based on your bank account.
Overview of current account
A current account is the best bank account for a firm or business. It has come with a range of benefits and ease of operating the transaction in the organization.
Current account features
- The company or organization can easily open its current account in a private bank or organization.
- There is no limit on daily transactions using the current account. But sometimes, they charge an extra fee for many transactions.
- Organizations and entities can enjoy the overdraft facilities which come with the current account.
- Additionally, the current account also permits the business to track business growth.
Difference between the current account and savings account
Here are the few factors that decide the current account and savings account differences
You can earn interest over the deposit in your savings account. But in the case of the current account, no interest is earned, this is due to the fluid nature of the account which allows frequent transactions.
A savings account holder cannot withdraw the money after exhausting the stipulated limit, though some banks allow them to make additional withdrawals with some fees. But there are no limits on withdrawals in the case of the current account.
The number of users
A savings account usually has one signatory that only makes transactions with a single name. A current account has multiple signatories, and the amount limit is assigned to every signatory authority.
The savings account is a great choice if you want to store your money for a long time and earn interest on it. But if you want to open an account for smooth business transactions, then the current account is best for you.