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Difference Between Current Account Vs Savings Account

The current account and savings account are two of the most common types of savings accounts. The current account is a savings account that allows you to save money, but also earn interest on it. This means that your money grows over time. The savings account, on the other hand, is a savings account that does not allow you to earn interest on your money. In fact, your money will not grow at all. In this post, we will compare these two accounts to help you decide which one is best for you. We’ll cover what they are, how they work, and how to choose the right one for you.

What is a Current Account?

A current account is a type of bank account where you make regular payments it. This means that you're not allowed to withdraw money from this account until you've paid back all of the money you've put in.

You can use your current account for any type of payment, such as making a bill payment or sending money to your partner. You can also make deposits into your current account.

The current account is an account that provides services for your debit and credit card transactions. You can use the current account to make purchases at any store that accepts MasterCard or Visa credit cards, and also for online shopping. It can also be used for bill payments.

A current account is like a checking account in a bank, except that it doesn't require a minimum balance. The interest rates charged are usually lower than those charged by a regular bank.

A current account is an account where you can keep your cash and the interest rate on the money deposited in this account is fixed. The interest rates on current accounts are usually lower than the savings account.

Features:

The current account gives you a lot of features and benefits. You can view your balance and transactions online, pay bills online and even transfer money to your current account from your other accounts. All these are done through your internet banking portal.

Monthly Average Balance (MAB):

The Monthly Average balance to open an account is different for different banks, If you are not sure about this then just ask your bank to confirm it.

Monthly Average Balance (MAB) Requirement on Basic Current Account of Different Banks.

Bank         Monthly Average Balance (MAB) Free deposit limits
HDFC Bank         Rs.75,000 10 times the MAB
ICICI Bank         Rs.25,000 12 times the MAB
Axis Bank         Rs.10,000 Up to Rs.2 lakhs
IndusInd Bank         Rs.10,000 Up to Rs.2 lakhs
Canara Bank        Rs.1 lakh (quarterly)  Up to Rs.5 lakhs per day
Yes Bank       Rs.1 lakh (quarterly)  Up to 10 times of AMB
Punjab National Bank Rs.1 lakh (quarterly) Up to Rs.2 lakhs per day

Disclaimer:
the Above Mentioned amount is purely in control of RBI and Respective Banks, the MAB may get change as per their norms

Documents required to open Current Account:

Your PAN card and address proof are enough.

Over Draft Facility:

With an overdraft facility, you can get more than your current account balance. This facility will be helpful if you have some emergency needs like a car repair. But you need to make sure that the amount is more than the current balance in your current account.

What is a Savings Account?

A savings account is an account where you can deposit money. It's usually used for saving money for a specific purpose.

The interest rate you earn on your savings will depend on the type of account you have. Some banks offer higher interest rates than others, so it's important to compare different accounts to find the best one for you.

When you have a saving account, it’s the most convenient way to save money for future purchases. If you want to save for a trip, you can easily transfer your money from your checking account to a savings account, and then use the savings account to pay for your trip.

If you want to start saving for your wedding, you can put some of your monthly income into a savings account, and then withdraw it when you get married.

You can also make an emergency fund with a savings account. You can use this fund to cover any unforeseen expenses that might arise, such as a car repair or medical bills.

You can even open an investment account and start investing in stocks, mutual funds, and bonds. But remember that savings accounts are not taxed as such, so you won't get any interest on your money.

A savings account is an account where you deposit your money with the purpose of earning more money. In a savings account, you don’t get any interest on your money but it is easy to access your money from this account.

Features:

A saving account is a type of account where you deposit money into it and get interested from the bank. This is a very good feature as you can save money for your future needs.

Monthly Average Balance:

The bank gives you the average amount of money that you have deposited in the account. Usually, a savings account will give you 1% interest per year.

Documents required to open Saving Account:

You would need a valid id card, proof of address, and your PAN card.

Over Draft Facility:

The bank will not allow you to withdraw more than the average amount of money in your account. So you should be careful with your withdrawals as this is a risk that you will have to bear.

How are they used?

Both types of accounts are used for different purposes. A current account is generally used to pay bills and make regular payments.

A savings account is usually used for saving money for a specific purpose.

Differences Between the 2 Types of Accounts

There are some differences between the two types of accounts, but in general, they're very similar.

How to Open a Savings Account?

Savings accounts are available at all major banks, and you can open one for as little as $1. It's important to compare different banks' interest rates when opening a savings account, as these rates will vary depending on your location.

What do you need to open a current account?

You'll need to provide your full name, date of birth, address, and phone number. You may also need to provide proof of your identity.

What do you need to open a savings account?

You'll need to provide your full name, date of birth, address, and phone number. You may also need to provide proof of your identity.

Can I get both a current account and a savings account?

Yes, you can have both a current account and a savings account, but they'll be two separate accounts.

What is the difference between a current account and a savings account?

There are some differences between the two accounts, but in general, they're very similar.

How to Make Current Account and Savings Account Work for You?

There are a lot of people who have a current account and savings account and they don’t even know how to use it properly. They think that they are going to get more money for saving in their current account but in reality, it is not so.

 How to use a Current Account and Savings Account?

If you have a current account, then you should deposit your money in this account and if you have a savings account, then you need to save your money in this account.

Conclusion:

So, these were some basic concepts of current account and savings account. I hope that after reading this post you will be able to make the best use of your current account and savings account.

Till now, we have provided you with information about the current and saving account. We have tried to include all matters inside this article, but they’re always something that misses catching. You can visit the https://app.moneyspring.in/ website for more interesting facts about it.

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