Savings Account vs Current Account- What’s the Difference & Benefits?

When I was a child, I used to save my pocket money in a piggy bank. Whenever I needed some money I used to jerk my piggy bank and a few coins used to come out of it. The concept of piggy bank seems fascinating as a kid, but in reality, depositing our savings is a different ball game altogether.

During the ancient civilizations in India, people used to store their grains, weapons and precious metals in temples and palaces. These used to act as their Bankers. Nowadays, Banks are the business entities where the people deposit their savings.

Everyone is required to have an Account with a Banker for some reason or the other. If you are a salaried person who wants to store his/her savings safely with a Banker, you need to open a Savings Account with them.

On the other side, if you are a businessman you need to make a plethora of payments every day. Furthermore, you are also required to deposit your cash receipts and bank cheques off and on in your Bank Account. Here, your Savings Account will not come into any use in this matter. It is your Current Account which will serve the intended purpose.

What is a Savings Account and Current Account?

Savings Account

A savings account is primarily designed for helping you in depositing your savings in a safe place.

A Savings Bank Account holder earns interest on his/her deposit which ranges from 4 to 6%. You can open a Savings Account with a Banker individually or jointly. Most banks mandatorily require the holders to keep a minimum specified amount in his/her Account to keep it operational.

Savings Bank Accounts are of various types. They include salary savings accounts, regular savings accounts, and zero balance savings accounts. Moreover, there are specific savings accounts for minors, senior citizens and women.

Current Account

Current Accounts are suited for regular transactions. These are exclusively meant for those who conduct businesses and involved in the day to day transactions. They are mainly opened by business organizations like firms, LLPs, companies, sole proprietorship concerns, etc.

There is no restriction with regard to the number of deposits and withdrawals from a Current Account. As Current Accounts offer immense liquidity to their users, they don’t offer any interests on the deposits made.