A lot of people wonder about the real meaning of having a savings account and current account. Here you can find out more about the accounts.

What is a savings account?

Savings account and current account
Source: Rokda Bazaar

The important purpose of having a savings account is to promote the savings amongst the investors. The Account helps you in keeping your money safe and then using it later when you need it without any restrictions.

There is a lot of ways through which you can withdraw the money from your savings account, which are as follows: 

  • Through an ATM card 
  • Withdrawal slips by bank 
  • Using the chequebook that the bank issued 

You can also use the savings account to make various online payments, and you can also invest the money in different things.

It will also help you in managing the receipts from salary and personal Account. If you are a person who is a net-savvy or probably more of a digital payment person, then you can also make payments and pay bills online.

How to open a savings account?

Source: Kerala Gramin Bank

You can open a savings account in an individual name or a joint name. Minors who are above age ten can also have a joint account with their parents.

There is a minimum amount of money that you can maintain in your savings account, and it differs from bank to bank.

Types of savings account: 

  • Salary Account 
  • Regular Savings Account 
  • Joint Savings Account 
  • Senior Citizens Savings account
  • Children Savings Account 

What is the current account?

Savings account and current account
Source: Kerala Gramin Bank

Current Account is a great account for business people who need to make payments daily. There are many payments and receipts involved in such accounts.

If it is a home branch, then banks also allow unlimited transactions and the bank also offers ATM and cheque book facilities.

The current Account allows the holder to make payments to different countries and also collect payments from different countries.

The Account helps in speeding up the process of collecting and making payments in different countries. 

How to open a current account?

Source: ICICI Bank

Any business entity can open the current Account. They just need address and identity proof and meet some formalities from the bank, which will help them in opening the Account.

A lot of banks have a minimum value of Rs 10,000 that the banks need to maintain. 

Types of Current Account: 

  • Regular Current Account 
  • Current Account with additional perks 
  • Premium Current Account

Difference between the savings account and current account:

Savings account and current account
Source: MyMoneySouq

Savings account: 

  • Who can open the Account – Individual or joint names 
  • The purpose is to promote savings 
  • There are transaction limits on the Account, and more than that might make the bank charge you. 
  • Ideal for personal and salaried use. 
  • Documents required like ID proof. 
  • Address proof and photograph.

Current Account: 

  • Business entity people can open. 
  • The purpose is to facilitate the use of multiple regular transactions. 
  • The minimum balance is a high amount. 
  • There are no transaction limits 
  • ID proof, address proof, photograph, proof of business entity required
  • Current Account allows overdraft