If you want to open an account in a bank, you must be clear in mind, as to which type of account is best suits for your requirement. If a person requires to open an account to keep his/her savings to meet their future needs and desires to make income from such savings then nothing is better than a saving bank account.
However, if an individual or entity, requires to open an account that can be operated end number of times, during a working day, then-current account or checking account is most beneficial.
While a savings account is mainly favored by the clubs, associations, individuals, trusts, etc. A current account is suggested for individuals, business entities, government bodies, societies, trusts, institutions, etc.
Comparison Chart: -
|BASIS FOR DIFFERENCE||SAVING ACCOUNT||CURRENT ACCOUNT|
|Meaning||Saving bank account is an account meant for individuals who like to save for facing their future financial requirements.||The current account belongs to a running account, in which there is no limit on the operation, during a working day.|
|Suitable for||Individual||Businessman or company|
|Objective||To promote the savings of a person.||To support frequent and regular transactions.|
|Opening balance||Less amount is needed to open a savings bank account.||The high amount is needed for opening a current account.|
|Passbook||Provided by banks||Not issued by banks.|
Definition of Saving Account
It is the most basic type of deposit account. An account held with a commercial bank, for boosting savings and investments is known as a Saving Bank Account. It provides a collection of facilities like ATM cum Debit Card facility with different variants, calculation of interest on a regular basis, internet banking, mobile banking, online money transfer, etc. Persons who are doing a job mostly preferred this type of account for saving their income.
Definition of Current Account
A deposit account managed with any commercial bank, for supporting frequent money transactions is known as a Current Account. Plenty of facilities are provided to you, when you opt for a current account like payment on standing instructions, transfers, overdraft facility, direct debits, no limit on the number of withdrawals/deposits, Internet Banking, etc. This type of account fulfills the need for an organization that requires frequent money transfers in its day-to-day movement.
Apart from the difference between both of them, to save income and to make money by money. You must invest your savings in Fixed Deposits or in Recurring Deposits. In Saving Account, Interest Rate is so low than Fd or Rd. If you are interested to know about this topic then you must read the Blog- Fd versus Rd.