Current Vs Savings Account

Savings account aims at encouraging savings of the general public whereas current account supports frequent and regular transactions of the account holder.

Current vs savings account. Savings account savings accounts and current accounts are the two most common types of accounts that are maintained by businesses and individuals. Current accounts are designed to meet the financial transactions of business entities. Savings accounts accrue higher interests than current accounts. Set up automatic payments like direct debits and standing orders.

Both the accounts are equipped with different features and are designed for diverse purposes. Having a current account in addition to a savings account is ideal for entrepreneurs who need to separate business expenses from their personal expenses. Current accounts help the holders to carry out frequent transactions. Current checking account is an active account which is meant for day to day monetary transactions.

Unlike savings accounts current accounts offer the added benefit of an overdraft facility 2 which can come useful for emergencies when your funds are limited. Savings account intended to an individual needs whereas the current account caters to the needs of firms and companies to carry out persistent banking transactions. A savings account is a deposit account which allows limited transactions while a current account is meant for daily transactions. Suitability a savings account is most suitable for people who are salaried employees or have a monthly income whereas current accounts work best for traders and entrepreneurs who need to access their accounts frequently.

Current accounts and savings accounts are basically an arrangement to lend money to a bank in the form of deposits which they promise to keep safe until you withdraw or spend it. If you open a savings account your banker might put a restriction in the number of transactions you can carry out in a month. Savings accounts as the name suggests are mainly opened for the purpose of savings funds for the future. Savings account vs current account.

Savings accounts are suitable for regular income earners like salaried individuals in meeting their short term financial goals. Savings bank accounts v s current accounts savings account and current accounts are designed for different purposes and have different features. Current accounts are used as a means to deposit checks and for bill payment purposes.