Differences between a Current account and a Savings account
The main differences between a current account and a savings account are their purpose and usage.
A savings account is designed for individuals who want to save money over time and earn interest on their deposits. It typically has restrictions on the number of withdrawals and transfers that can be made in a month, and may require a minimum balance to earn interest.
A current account, on the other hand, is designed for frequent transactions and managing day-to-day finances. It is primarily used by businesses, although individuals can also have current accounts. Current accounts typically have no limit on the number of transactions, but may not offer interest on deposits.
Here are some other key differences between current and savings accounts:
1. Purpose: Savings accounts are used for saving money, while current accounts are used for managing cash flow and making frequent transactions.
2. Interest rates: Savings accounts usually offer higher interest rates than current accounts.
3. Withdrawal restrictions: Savings accounts may have restrictions on the number of withdrawals and transfers you can make in a month, while current accounts typically have no restrictions.
4. Fees: Current accounts may have higher fees than savings accounts, as they offer more services and features such as overdraft facilities and check writing.
In summary, a savings account is ideal for those looking to save money and earn interest on their deposits, while a current account is suitable for those who need to manage frequent transactions and cash flow.