Question

Distinguish between the following:

Current account & Savings account

Answer 1

Difference between Current Account and Savings Account
Basis of Difference	Current Account	Saving Account
Meaning	It is opened by businesspersons and others who do regular banking transactions.	It is opened by individuals who wish to save some part of their income
Restriction on number of withdrawals	There are no restrictions on the number of withdrawals till the balance in the customer’s account is more than that required.	There are certain restrictions on the number of withdrawals.
Mode of withdrawing money	It is done through cheques.	It is done through cheques or withdrawal slips.
Preferred by	It is preferred by businesspersons, firms and different institutions.	It is preferred by salaried people.
Interest given	No interest is given.	Interest is given, but the rate is very low.
Overdraft facility	Overdraft facility is available.	Overdraft facility is not available.