Having a bank account has become an important need of every person today. From salaried employees to farmers and housewives and students to businessmen, there is a need for a bank account. Two types of accounts are opened in every bank- Savings and Current accounts, even though both these accounts are used for deposits and transactions but they are not the same. There is a big Difference Between Savings and Current Account, in this article, we will see that only.
What is The Difference Between Saving Account and Current Account in 2022?
What is Savings Account in 2022
This account is used to settle the personal transactions of the common people but there are some limits on the transactions on this account. Normally maximum 5 transactions can be done in a day from a savings account.
The bank provides check book, debit card, ATM card, internet banking and mobile banking facilities to the savings account holders, most of which are free services.
You can take advantage of these facilities provided by the bank like pay important bills through mobile banking and internet banking, transfer funds, do online shopping and shopping with debit cards and money in your account Can do things like extract.
The bank also gives interest on the amount deposited in the savings account, and the rate of interest is 4 to 6 percent in most banks. In such a situation, before opening a savings account in the bank, it is beneficial to know how much interest the bank is paying. Tax is also levied on savings account interest, but there is also a provision of tax relief on interest of Rs 10,000 per annum.
Generally, there is a condition to keep the minimum amount in the savings account which is different according to the government and private banks.
What is Current Account in 2022
While the savings account is for the common people, the current account is especially for the businessmen. There is no limit on transactions in this type of account i.e. any number of times transactions can be done in a day.
On the amount deposited in the current account, interest is not available like the savings account, but a great feature of this account is that through this the bank provides money to the businessmen so that there is no interruption in their business.
Another feature of the current account is that through this account, traders can withdraw more money than the amount in it, that is, the facility of overdraft in the current account is provided by the bank. The amount that can be over drafted from a current account is decided by the bank keeping in mind the turnover and profits of that account holder.
An individual can open this account either individually or as a joint account. Current accounts are opened by companies, trusts, voluntary organizations, societies and authorities. Many such facilities are provided by the bank on the current account, so that the companies and institutions holding the account get ease in their functioning.
Such facilities offered by the bank include fund transfer through NEFT, door step banking, issuance of demand draft or pay order, free cash deposit and check collection and payment. Friends, now you have got general but important information related to current account and savings account.
Hopefully aware but what is the difference between savings account and current account that you must have liked this information and will also prove beneficial for you.
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Difference Between Savings and Current Account
Interest is available on the savings account by the bank whereas, this facility is not available on the current account. It is necessary to have a minimum balance in the savings account, whereas, it is not necessary to have a minimum balance in the current account.
There is a fixed limit for withdrawing money in the savings account, if you withdraw money from that fixed limit, then the bank charges you service, whereas, in the current account, you can withdraw and deposit money any number of times in a day, that too without any bank. Service charge paid.
If you have business or any business then current account is very beneficial for transactions because bank current account gives many facilities to the account holder whereas it is not so in savings account.
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FAQ’s Section
What is the difference between Savings and Current Account?
A savings account is opened to encourage and promote savings. Current account is designed to facilitate a regular or frequent transaction. Savings account is an ideal option for anyone who earns a steady or regular income like a salaried employee.
Saving Account is a deposit account that you can open in any government or non-government bank, here you can deposit your remaining money or you can also deposit or invest money to spend the whole month.
Current account has a minimum monthly balance limit, in which you have to keep at least that limit in your account. These limits are 5000 to 10000 rupees in most of the banks. One special thing about this account is that the bank does not give any interest in this, but some service charge is taken in some accounts.
Conclusion
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