Difference between Current Account & Savings Account
The main objective of current account is to entertain maximum number of transactions while savings account encourages customers to make more savings.
Savings Accounts are opened by the individuals mainly by salaried persons & HUFs whereas Current Accounts are opened by Non-individuals like Proprietors, Partners, Companies, Trusts, Associations, etc.
(3) Interest Rate
Savings Accounts offer periodic interest on deposits which ranges between 3.5% to 7% while Currents Accounts generally don't offer any interest. However, some banks have started offering low interest now-a-days.
(4) Over Draft (OD) or Cash Credit (CC) Facility
Current Accounts offer Bank Overdraft facility to the customers whereas Savings Account don't offer such a facility to the customers.
(5) Minimum Account Balance (MAB)
A higher Minimum Account Balance needs to be maintained in Current Account as compared to that of Savings Account. The limit of the same is decided by the banks and differs from bank to bank.
(6) Number of Transactions
As the Current Accounts are opened with an objective of carrying out very frequent transactions, they don't usually put any cap on number of transactions. Savings accounts usually put a limit on the maximum number of transactions which ranges between 3 to 5 transactions per month. After crossing these limits, the customers need to pay charges on additional transactions done by him.
(7) Nomination Facility
Nomination Facility is available in Savings Account but it is not available under Current Account.
(8) Opened for
Current Accounts are normally opened for making business transactions and paying bills while Savings accounts usually are used for salary accounts and making small savings.