Difference between a Savings and Current Account

Many customers as well as normal people are confused about the difference between savings and current account. Saving account holders are mostly salaried individuals, home makers, house wives, students or senior citizens, who do not need to do multiple payments or transactions on a daily basis.

On the other hand, small and big business owners need to make multiple payments, receipts and other transactions. They need to access their accounts frequently. For them a current account is more suitable. Here are a few pointers to help you understand the difference between current Account and saving account:

A savings account is a deposit account which allows limited transactions, while a Current Account is meant for daily transactions.

Savings accounts earn interest while there is no such earning from a Current Account. A Current Account is actually a no interest-bearing deposit account except for our Flexi Current Account. 

When the customer withdraws more money from the account, than is has in his account,  then the current account is said to be overdrawn. In the case of a savings account, banks neither offer nor allow overdraft facilities, whereas, this facility is provided with a Current Account. 

The minimum balance required to maintain a savings account is usually low, but for a Current Account it is much higher in comparison.