We use bank account for both savings and business. Banks give you the facility to open two types of accounts, a savings account and a current account, you should open a bank account according to your need. In this post, we will share with your general information about the difference between savings and current account, so that you will get information about these two types of bank accounts.
Go through the complete post to know in details: Difference between Savings and Current Account.
Savings account for saving money and Current account for business
Savings account is for those people who want to save some part of their earnings. Any person can open this account. With this account you can take advantage of all types of banking facilities.
Current account is for merchants or for those who have to do more transactions with the bank. You can deposit and withdraw money in this account any number of times. Current account is according to the need of the people of the business class.
Minimum balance limit in current and savings account
Savings account can be opened even with zero balance and in this you have to maintain lesser minimum balance. In zero balance account, you do not even have to do that. In a normal savings account, this amount is between Rs 500 to 1500, this amount is decided by your bank, in private banks, the minimum amount limit in a savings account is slightly higher.
It is necessary to maintain a minimum balance in the current account, in which you have to maintain an amount of 5000 or more. Banks levy penalty if the amount is less than the minimum amount.
How much interest
We are given some interest by the bank on the amount deposited in the savings account. The rate of interest can range from 2.5% – 4% depending on your bank and account type.
No interest is paid to you on the amount deposited in the current account, rather the bank charges you some fee for the account. This fee is charged monthly or annually.
Transaction limit in current account and savings account
In a savings account, you can do only a certain number of transactions in a month. Banks charge you for making transactions more than the prescribed limit in the savings account. Any amount can be deposited and withdrawn in a regular savings account. In Jan Dhan account and BSBD account, you cannot keep balance more than the prescribed limit and cannot withdraw money.
There is no limit on transactions in the current account, in which money can be withdrawn and deposited several times in a day.
Friends, hope this post information about the difference between savings and current account must have been of some use to you.