The time could come when you need to do many daily transactions like traders and entrepreneurs. The current account is allowed to make many transactions in a day. You know how a current account differs from a savings account, and we will explain the difference between the current account and a savings account.
Current Account VS Savings Account
1. Purpose
Savings Account: The purpose of a savings account is savings only with limited transactions.
Current Account: The purpose of the current account is to make many transactions in a day.
2. For Whom
Savings Account:Â It is basically for those who want to save money. Anyone can open a savings account.
Current Account: This is best for those who make multi-transactions in a day. Such as, traders and entrepreneurs are using current accounts frequently to do many transactions.
3. Interest
Savings Account: Savings account holders earns interest on their deposits.
Current Account: There is no interest on current account deposits. This account is only for making multi-transactions.
4. Minimum Balance
Savings Account: Low balance requires keeping an active account.
Current Account: High minimum balance requires to keep an active account.
5. Overdraft
Savings Account: An overdraft facility is not available in a savings account.
Current account: An overdraft facility is available in a current account.
