What is the Difference Between Saving Account and Current Account

Bank Accounts

Today bank account is so important for everyone and that right as well because bank secures our money, collects our money, gives us satisfaction and ignores money wastage. Even every poor person also has its bank account and that is only because of Prime Minister’s Jan Dhan Yojna, that’s why everyone has its own ATM in his pocket. CLICK HERE TO KNOW How to Recognize Heart Attack One Month Before It Happens ...

What is the Difference Between Saving Account and Current Account

When anyone goes to bank with the purpose of account opening, they found only two types of common account one is Saving Account and other Current Account. But do you know what the difference between them is? May be no and you don’t even found this on account opening form as well. But these both accounts has their own importance, if you know them it will be easy for you to choose best account for you according to your needs. Today we are going to tell you the difference and importance of these two most popular bank account but let’s first know how know how many type of bank account is there to choose?

Type of Bank Accounts

· Saving Account : The most famous or heart account is saving account or we can say it the peoples account. It is mostly used in common transaction. CLICK HERE TO KNOW What is Black Magic Define ...

Which Account is Better Saving or Current

- Advantages : The best part of this account is that banks gives us interest on our deposited amount and it is nearer to 6 %, but it may be different according to the bank or their terms and condition, so check it with the opening of your account. With that saving account provides many facilities like ATM, Debit Card, Internet and Mobile Banking and Check Book etc. You will be happy to hear that most of these features are free. With such facilities and features you can do online shopping, money transfer and you can fill your exam form by own etc. There is no condition over your minimum balance as well. The other fine characteristic of this type of account is that it is simple to withdraw or deposit money.

- Disadvantages : The first disadvantage of this account is that you can only use transaction 4 to 5 times in a day and other disadvantage is that the interest which bank gives you on your deposited amount suffers the heat of tax.

Types of Bank Account

· Current Account : Current Account is very different from saving account, it is only provided to businessman, companies or social firms etc because they need to transfer money many times in a day, with that they have heavy transaction.

- Advantages : There is no limit of transition and deposition in this type of account. You can withdraw, deposit, transfer money as many time you want in a day. This helps in businessman to run their business without any break. The other most important facilities for businessman are that they can use overdraft feature as well. According to this facility businessman can withdraw more money against his deposited account, this takes their account in minus.

This is not necessary that only one man can open current account but a group, society or trust can have this type of account. There are other facilities for current account holders as well like they can use NEFT RTGS fund transfer feature, Door Step Banking, Demand Draft, Pay Order, Check Collection or payment and Free Cash Deposits.

- Disadvantages : There is no interest provided by bank on current account balance, but bank charges heavy interest on the amount you withdraw by using your overdraft feature.

Current Account

· Recurring Account : You may not heard about this account much. It has its own terms like you have to pay monthly fixed installment of money per month or on fixed time period. You money is deposited on one place, on which you receive a heavy interest ( 9 % - 10 % ), this interest is even more than the saving account. After the fixed or select time period chosen by you, you receive your all deposited money with the addition of interest. But if you forget you installment your will face penalty also. Recurring account has some more benefits like you can take loan against your deposited amount, but it has its limit like 75 % of your amount. On this loan bank charges 1.5 % to 2 % interest. Some peoples call it the Installment Account.

· Fixed Deposit Account : If you want the maximum interest from bank than you need to open fixed deposit account. In this you have to deposit amount only one time and you can’t withdraw your money in before the fixed time period. The fixed time for this account may be 5 years, 7 years or 10 years ( selection is yours ). After this period you receive your money with the increment of 75 % of your money, double ( *2) or more than double may be more than double (this depend on your selection of time period ).

Saving Account

It has 2 more benefits, first you can take loan over your fixed deposited money but you will have to pay interest for that loan money. The other benefit is that you can apply for credit card as well. Some banks have their different condition, according to which you can receive your interest monthly, if not than it will be paid after the completion of time period.

So, these were the type 4 types of bank account, their advantages and disadvantages. To know more anything about any bank accounts then you can immediately comment us below and get the information.

Advantages and Disadvantages of Saving and Current Account

Which Account is Better Saving or Current, Types of Bank Account, Current Account, Saving Account, Fixed Deposit Account, Recurring Account, Bank Accounts, Advantages and Disadvantages of Saving and Current Account

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What is the Difference Between Saving Account and Current Account

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