Difference Between Savings Account and Current (Checking) Account
February 17, 2015 By Surbhi S 23 Comments
Before going to open an account in a bank, one should be clear in mind, as to which type of account is best suits their requirement. If a person wants to open an account to keep his/her savings to fulfill their future needs and desires to earn income from such savings then nothing is better than a saving bank account. However, if an individual or entity, wishes to open an account that can be operated end number of times, during a working day, then current account or checking account is best.
While savings account is mainly preferred by the clubs, associations, individuals, trusts etc. current account is meant for individuals, business entities, government bodies, societies, trusts, institutions, etc.
To further comprehend this, read out the article to get full fledged knowledge on the difference between savings account and current account.
Content: Current Account (Checking Account) Vs Saving Account
Comparison Chart
Definition
Key Differences
Similarities
Conclusion
Comparison Chart
BASIS FOR DIFFERENCE SAVING ACCOUNT CURRENT ACCOUNT
Meaning Saving bank account is an account meant for individuals who like to save for meeting their future financial requirements. Current account refers to a running account, in which there is no limit on the operation, during a working day.
Definition of Saving Account
Savings Account is the most common type of deposit account. An account held with a commercial bank, for encouraging savings and investments is known as a Saving Bank Account. A savings account provides an array of facilities like ATM cum Debit Card facility with different variants, calculation of interest on a daily basis, internet banking, mobile banking, online money transfer, etc.
The account can be opened by any Individual, Agencies or institutions (if they are registered under the Societies Registration Act, 1860). A Pvt. Ltd and a Ltd. company are not allowed to open a savings account.
Definition of Current Account
A deposit account maintained with any commercial bank, for supporting frequent money transactions is known as Current Account. A plethora of facilities is provided to you, when you opt for a current account like payment on standing instructions, transfers, overdraft facility, direct debits, no limit on the number of withdrawals/deposits, Internet Banking, etc.
This type of account fulfils the very need of an organisation that requires frequent money transfers in its day-to-day activity.
An Individual could open this type of account, Hindu Undivided Family (HUF), Firm, Company, etc. Account maintenance charges are applicable as per the bank rules. The current account is also known as checking account or a transactional account.
Key Differences Between Savings Account and Current (Checking) Account
The difference between savings account and current (checking) account can be drawn clearly on the following grounds:
Savings account refers to an account that is meant for people who keep their saving to fulfil their financial requirements in future. Current (Checking) account is an active account which is meant for day to day monetary transactions.
Savings account aims at encouraging savings of the general public whereas current account supports frequent and regular transactions of the account holder.
Saving Account is appropriate for salaried people and the group of people like the club, trust, an association of persons, etc. for regular savings. Conversely, Current Account is perfect for business entities,
February 17, 2015 By Surbhi S 23 Comments
Before going to open an account in a bank, one should be clear in mind, as to which type of account is best suits their requirement. If a person wants to open an account to keep his/her savings to fulfill their future needs and desires to earn income from such savings then nothing is better than a saving bank account. However, if an individual or entity, wishes to open an account that can be operated end number of times, during a working day, then current account or checking account is best.
While savings account is mainly preferred by the clubs, associations, individuals, trusts etc. current account is meant for individuals, business entities, government bodies, societies, trusts, institutions, etc.
To further comprehend this, read out the article to get full fledged knowledge on the difference between savings account and current account.
Content: Current Account (Checking Account) Vs Saving Account
Comparison Chart
Definition
Key Differences
Similarities
Conclusion
Comparison Chart
BASIS FOR DIFFERENCE SAVING ACCOUNT CURRENT ACCOUNT
Meaning Saving bank account is an account meant for individuals who like to save for meeting their future financial requirements. Current account refers to a running account, in which there is no limit on the operation, during a working day.
Definition of Saving Account
Savings Account is the most common type of deposit account. An account held with a commercial bank, for encouraging savings and investments is known as a Saving Bank Account. A savings account provides an array of facilities like ATM cum Debit Card facility with different variants, calculation of interest on a daily basis, internet banking, mobile banking, online money transfer, etc.
The account can be opened by any Individual, Agencies or institutions (if they are registered under the Societies Registration Act, 1860). A Pvt. Ltd and a Ltd. company are not allowed to open a savings account.
Definition of Current Account
A deposit account maintained with any commercial bank, for supporting frequent money transactions is known as Current Account. A plethora of facilities is provided to you, when you opt for a current account like payment on standing instructions, transfers, overdraft facility, direct debits, no limit on the number of withdrawals/deposits, Internet Banking, etc.
This type of account fulfils the very need of an organisation that requires frequent money transfers in its day-to-day activity.
An Individual could open this type of account, Hindu Undivided Family (HUF), Firm, Company, etc. Account maintenance charges are applicable as per the bank rules. The current account is also known as checking account or a transactional account.
Key Differences Between Savings Account and Current (Checking) Account
The difference between savings account and current (checking) account can be drawn clearly on the following grounds:
Savings account refers to an account that is meant for people who keep their saving to fulfil their financial requirements in future. Current (Checking) account is an active account which is meant for day to day monetary transactions.
Savings account aims at encouraging savings of the general public whereas current account supports frequent and regular transactions of the account holder.
Saving Account is appropriate for salaried people and the group of people like the club, trust, an association of persons, etc. for regular savings. Conversely, Current Account is perfect for business entities,
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