Nowadays everyone opens their account in the bank, but while opening an account in the bank, you should get some important information. There are many people who do not know the difference between a savings account and a current account.
In such a situation, today we are going to tell you which one of the savings account and current account will be beneficial for you and it also depends on which account you are going to open from your member. Both savings and current accounts are similar but there is a slight difference. Let’s know more…
Objective: The purpose of opening a savings account is to save for the general public or for a salary account. In this, the person deposits his savings and can use it in the future.
Minimum balance: However, in a savings account, there is a minimum balance condition that you have to maintain. It is determined by the bank which is not much.
Interest rate: The interest rate on savings accounts is usually lower, while it is higher on current accounts.
Cheque Book: In a savings account, the bank also gives you a cheque book which you can use for various transactions.
Objective: The main purpose of opening a current account is to keep money safe for business purposes. In this, more amount is deposited and the transaction is done as per the stipulated time.
Minimum balance: To open a current account, you have to maintain a minimum balance, but it is higher than that of a savings account.
Interest rate: Current account interest rates are higher than savings account interest rates. But the interest rate is not high.
Cheque Book and Overdraft: You can use the cheque book given for the current account for business transactions. It also gives you the facility of overdraft, in which you can spend more than the balance.