Comparison chart between Saving Account and Current Account
Current Account-
Current account is opened by businessmen who have a higher number of regular transactions with the bank. It can be opened in any co-operative bank and commercial banks with a minimum amount of Rs. 5,000 (which vary bank to bank). It includes deposits, withdrawals, and contra transactions. It is also known as Demand Deposit Account. It is suitable for making payments to creditors by using Cheques, RTGS, NEFT or Pay order etc. Cheques received from customers can be deposited in this account for collection. Generally, current account holders do not get any interest on their balance lying in current account.
Saving Account-
Savings Account is the account held with a commercial bank, for encouraging savings and investments. Normally saving accounts are opened by an individual person. It can be single or joint account. Saving account can be opened with a lower amount say Rs. 500, 1,000 or more (which vary bank to bank, area to area) A savings account provides an array of facilities like ATM cum Debit Card facility with different variants, calculation of interest daily, internet banking, mobile banking, online money transfer, etc.
Comparison Chart-
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Particulars
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SAVING ACCOUNT
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CURRENT ACCOUNT
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Meaning
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Saving bank account is an account for individuals, who keep their money to save for meeting their current and future financial requirements.
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Current account refers to a running account, in which there is no limit on the operation, during a working day.
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Account opened
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Saving account can be opened with less amount say minimum amount of Rs. 500, 1,000 or more, which vary from bank to bank
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Current account can be opened with higher amount say minimum amount of Rs. 5,000, 10,000 or more, which vary from bank to bank
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Objective
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To encourage savings of a person.
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To support frequent and regular transactions.
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Best for
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Individual
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Proprietor, Firm, Companies, Trust, AOP’s,
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Interest
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Interest is received on balance held with bank
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Interest is not received on balance held with bank
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Withdrawals
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You can make limited withdrawals
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There is no restriction on Withdrawals
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Passbook
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Passbook is issued by banks
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There is no issuance of passbook, you can take statement or download it.
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Overdraft
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There is no overdraft facility can be availed against saving accounts
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The overdraft facility can be availed in current accounts
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Cheque Book
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There is restriction on issuance of cheque book
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There is no restriction on issuance of cheque book
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Bank Charges
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There are small transactions, so bank charged Nil or lower amount of charges
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There are great transactions, so banks charged amount for account keeping charges periodically
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