Question

What is the difference between Savings Bank account and Current account?

Answer 1

A Savings account allows the holder to deposit money as is convenient, on which the holder can earn interest. A Savings account may be opened by an individual or jointly, and requires the holder to usually maintain a pre-specified amount as the minimum balance. Interest rates earned on Savings accounts range anywhere between 4% to 6% and these accounts do usually carry the facility of issuing cheques. A current account is more suited for users like firms, companies, public enterprises, businessmen, etc. Currents accounts do not earn any interest due to the fluidity they offer. Current accounts usually do not carry a limit on the number of transactions which can be made.