Difference Between Current Account And Savings Account

Current accounts also offer overdraft facilities online payment facilities and automatic bill payment facilities that are not provided to savings account holders.

Difference between current account and savings account. For example the ocbc and uob current accounts charge a minimum balance fee of 7 50 if you can t maintain at least 3 000 daily in the account. Current accounts are often regarded as non interest bearing accounts. Savings accounts pay a higher rate of interest while current accounts usually do not pay interest. Most current accounts also allow you to.

Current account deposits are non interest bearing i e the banker do not pay any interest for the amount in account. Current accounts are good for. Banks lend the money accepted from the public to the people who need it by charging interest. Savings account is the most common deposit account opened not just by ofws but by many people.

Individuals who have normal income and don t do any high transactions. Opening a savings account usually requires a lower initial deposit than when you open a current account. Apparently there are two types of deposit accounts. Savings accounts cater to individuals who want to save whereas current accounts are made for regular transactions of firms and companies.

Current accounts are generally best for managing day to day transactions. Borrow money using an overdraft. Current accounts are opened by rich individuals business firms trust societies etc. Saving account is appropriate for salaried people and the group of people like the club trust an association of persons etc.

Learn about the difference between the two and find out the best one for you. Savings account and current accounts are designed for different purposes and have different features. 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. A savings account is a deposit account which allows limited transactions while a current account is meant for daily transactions.

Savings and current account. Difference between current account and savings account the main sources of funds for banks are deposits from the customers. Savings accounts are a safe home for extra cash and pay interest on your balance. A convenient mode of payment which can.

Set up automatic payments like direct debits and standing orders. Current accounts also tend to have minimum balance fees. Savings account aims at encouraging savings of the general public whereas current account supports frequent and regular transactions of the account holder.