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Difference between Current Account and Saving Account


Current Account: It is a demand deposit account in which the account holder gives demand to banker for withdrawal of the money.
Saving Account: It is a demand deposit and time deposit account, in which account holder can save money and earn interest on it and demand the withdrawal of the money by issuing cheques and draft etc to bank.
Let’s find out the difference between current account and saving account.

S.No.
Point of differences
Current account
Saving account
1.
What is current account and saving account?
Current account is only demand deposit account in which account holder can only demand for withdrawal of money to banker.
Saving account is not only demand deposit account but also time deposit account in which the account holder can demand for withdrawal of money to banker and also save money for future and earn interest on it.
2.
Is Interest earned on current account or saving account?
No interest is earned by current account holder.
Interest is given to saving account holder on depositing money for future.
3.
Withdrawal limit in current account and saving account
There is no withdrawal limit for current account holder.
The saving account holder cannot withdraw money more than 5 to 6 times in a month.
4.
Why opening a current account and saving account?
Current account is open for meeting day to day transactions or expenses of account holder.
Saving account is open for saving purpose and to earn interest on it.
5.
Who can open current account and saving account?
A business person, public or private company, partnership firm etc can open an account.
An individual or two persons can jointly open an account.
6.
What is the minimum level of amount deposited to open a saving and current account?
The minimum amount deposited to open a current account is higher than saving account minimum deposit. Normally the minimum balance in current account is Rs. 10, 000.
The minimum level of amount deposited to open a saving account is lower in comparison to current account minimum deposit. The minimum balances in saving account in rural area are ranges from Rs. 500 (in rural area) to Rs. 5, 000 provided by some banks. Some banks provide zero balance saving account.
7.
What is the maximum amount deposited in current account and saving account?
There is no maximum amount deposited in current account
The amount deposit in saving account are not more than Rs.1,00,000 and for minor account there is no such limits.
8.
What facilities provided by bank on opening a current account and saving account?
Facilities provided in current account are:
·         The bank provides the proof of account holder’s credit worthiness to lenders and it also provide letter of credit at the time of import and export activity.
·         It provides overdraft facility to account holder.
·         It provides quick payments facility to account holder like free withdrawal, no fees on certain number of demand draft.
Facilities provided in saving account are:
·         It provides insurance facility if account holder maintain the minimum balance.
·         It provides discount on locker fees.
·         It provides interest on deposit amount.


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