3 Replies to “What is the difference between a current account and a Savings account?”

  1. Current a/c usually you are allowed to deposit cash and withdraw the way you like, and it earns no intrest insted when you withdraw money you are charged.
    Saving a/c is different because you are only allowed to save and you will only withdraw cash after a specified period of time..say 6 months. The cash ‘grows’ i.e earns interest.


  2. Current bank account is opened by businessmen who have a number of regular transactions with the bank, both deposits and withdrawals. It is also known as Demand Deposit.
    Current bank account is opened by businessmen who have a number of regular transactions with the bank, both deposits and withdrawals. It is also known as Demand Deposit.
    Current account can be opened in co-operative bank and commercial bank. In current account, amount can be deposited and withdrawn at any time without giving any notice. It is also suitable for making payments to creditors by using cheques. Cheques received from customers can be deposited in this account for collection.

    The advantages of current account are as follows:-

    1 Current account enables businessmen to conduct his business transactions smoothly.
    2 The businessmen can withdraw any amount at any time from their current accounts. There are also no restrictions on withdrawals.
    3 The businessmen can make direct payment to their creditors with the help of cheques.
    4 The bank collects money on behalf of its customers and credits the same to their accounts.
    5 Current account enables the account holder to obtain overdraft facility.
    6The creditors of the account holder can get credit-worthiness information of the account holder through inter bank connection.
    7 Current account facilitates the industrial progress of the country. Without the help of this account, businessmen would have difficulties in running their business.

    Savings accounts are accounts maintained by retail financial institutions that pay interest but cannot be used directly as money (for example, by writing a check). These accounts let customers set aside a portion of their liquid assets while earning a monetary return. For the bank, money in a savings account may not be callable immediately and therefore often does not incur a reserve requirement freeing up cash from the bank’s vault to be lent out with interest


  3. addition above

    both type a/c will be watched by IT , and sb a/c can be operated by max 2 person in normal cases, but ca can be operated by many as u wish as partners .only ca a/c is allowed for business purpose, n there is no interest .they always fix a min transaction amnt per month for ca but in the case of sb its min balance. for ca a/c pan card is must, in sb its optional.





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