what is the difference between current account and savings account?

Question

when we go ATM to withdraw money,we will be given these two accounts for choice,most of people select savings,what is diffrence between them??

Answer 1

current account is one where u don't get interest while u get interest on your savings in the saving account

Answer 2

Current And Savings Account

Answer 3

A current account is an account for managing your money on a day-to-day basis. They normally support payments to third-parties in the form of direct debit, standing order, cheque, transfers and debit card transactions. They may allow for a certain degree of short-term borrowing via an overdraft facility. Current accounts traditionally didn't attract interest but many high street banks now pay a small rate of interest on personal current accounts. Savings accounts, as the name implies, are intended as a means of saving. They will attract a higher rate of interest but are more resistrictive in the way the money can be used. Banks rarely issue debit cards or cheque books against savings accounts and the only ways of moving money in or out of the account is usually over the counter or to/from another account with the same bank. Some even have resistrictions or impose penalties on the amount, method or frequency of withdrawals. To answer your question, a current account does not necessarily have to involve any kind of borrowing and, as you describe it as "day to day" account it is most likely to be a current account. Barclays should be able to confirm what type of account you have. Current accounts often appear on credit reports because they are considered part of your credit profile. The way you manage your current account is often a reflection of your general credit worthiness. If you have no overdraft and the account is in good standing it's presence on your credit report is likely to have a positive effect.

Answer 4

There is a difference between current account and savings account.

Current account is normally operated by businessman/organization for commercial purpose. The interest is charged by the bank on its operation. Bank overdraft is possible.

Savings account is an account for deposit of savings of an individual. The interest is given by the bank on the balance in the account to the account holder. Bank overdraft facility is not available. The rate of interest provided by the bank for saving account is lesser than the rate of interest charged by it on the current account.

Answer 5

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With a savings account you are meant to leave your money in it to accumulate. So the interest rate is higher. A current account is for your day to day spending etc. That's why you get a card and a cheque book etc. and your salary gets paid in each month. If you get any interest on this account it is usually low. Nothing to stop you using a savings account the way you are doing, but it is not how it is meant to be used.

Answer 6

Current Account is meant for business to suit the needs of business, normally which does not carry any interest. Normally only proprietorship firms are only issued ATM cards in case of Current Accounts.

Savings Accounts are individual accounts for the needs of individuals. Presently this carries about 3.5% interest rate in India.

Answer 7

An account in the balance of payments that comprises imports and exports of goods and services and unrequited transfers. See Capital account.
An account maintained by a customer with a depository institution for the purpose of accumulating funds over a period of time. Funds deposited in a savings account may be withdrawn only by the account owner or a duly authorized agent, or on the owner's nontransferable order. The account may be owned by one or more persons. Some accounts require funds to be kept on deposit for a minimum length of time, while others permit unlimited access to funds.

Answer 8

Nre Account Wiki

Answer 9

In current account it can be operated as many time as you want and you get no interest. Generally businessmen keps this account.In saving account the no of dealings per month is limited and you also get interest in the principal amount.

Answer 10

Hi the fundamental difference is that.

current account (C.A.)
savings account (S.A.)


C.A - no interest
S.A - earns interest based
on minimal monthly balance

C.A - overdraft allowed
S.A - No overdraft (mostly - except some banks)
Overdraft means, once in a while
they are allowed more
money than what they
have in the account, as
long as they repay it
with interest

C.A - No minimum balance
S.A - Minimum balance requirement

C.A - Preferred by business
S.A - Preferred by individuals for interest
folks for overdraft facility

Apart from these basic difference, some banks might have
additional differences like quantum of money you can keep etc..

You will be allowed by the ATM to withdraw from a given account, only if you have an account of that type in the bank

Answer 11

A current account is for business. Only people who own a business can open this a/c with the bank.

A savings a/c is for people who want to keep the money in the bank. This a/c pays a very small rate of interest to the a/c holder. (It depends on the bank. If the bank is a pvt one, they charge you money if u don't maintain a min. bal, besides the annual maintenance charges)