Almost all the banks offer both Current and Savings Accounts. These Bank Accounts are different from each other. People get confused about what are Savings Accounts and Current Accounts?

Savings Accounts are meant for people who want to save their money. Current Accounts are for frequent business transactions. There are other differences between the two. For example, Savings Accounts provide higher interest rates than Current Account. Savings Accounts may have a monthly transaction limit, while Current Accounts do not come with such limitations.

Let us get to know more as to what is Savings Account and Current Account:

Savings Accounts: The primary purpose is to help you save. You deposit money in this type, and the account holder earns interest. You open this account individually or jointly. You need to maintain a minimum balance too. The interest rates on Savings Accounts are between 3% to 7%. 

Current Accounts: These are for regular transactions. Firms, companies, or public enterprises hold this type of account. You cannot earn any interest on the Current Account. They do not come with any capping on the number of transactions that you make.

Both the accounts are meant for different financial needs. You need to understand the difference well before you open an Account. A Savings Account is perfect for those who earn a regular income and likes to save a part of their income.

Anyone who has a short-term financial goal like a wedding, buying property, vehicle, vacation, etc., can use the Savings Account. At the same time, if you frequently transfer funds to shopkeepers, business people, firms, and companies, open a Current Account online.

Savings Account interest rates and better can go higher when opened online. You can check with your bank for an accurate figure as it is on a pre-specified basis. Under Current Accounts, banks do not provide any interest rates on the Current Account since the money is for the short term and is more fluid in nature.

Also, there is a difference in the minimum balance requirement of the two accounts. The minimum balance is the money you must have in your account to prevent penalty or de-activation. In a Savings Account, the minimum balance required is less, but you need to maintain a higher minimum balance for Current Accounts.