A savings account and a current account are two types of bank accounts with different features and benefits. Here are the main differences between them:
- Purpose: Savings accounts are designed for individuals to save their money, whereas current accounts are primarily meant for business transactions.
- Minimum balance requirement: Savings accounts usually have a minimum balance requirement, while current accounts often have higher minimum balance requirements.
- Interest rates: Savings accounts typically earn interest on the money deposited, while current accounts usually don’t offer any interest.
- Withdrawals: Savings accounts typically have limits on the number of withdrawals or transfers you can make per month, while current accounts generally don’t have any such restrictions.
- Fees: Savings accounts usually don’t have any transaction fees, while current accounts may charge fees for various transactions such as cheque issuance, cash deposits or withdrawals, and more.
- Overdraft facility: Current accounts usually offer an overdraft facility that allows the account holder to withdraw more than their account balance, subject to certain conditions. Savings accounts usually do not offer an overdraft facility.
In summary, savings accounts are designed for individuals to save their money and earn interest, while current accounts are more suitable for businesses and offer features such as higher minimum balance requirements and overdraft facilities.