Distinguish Between Saving and Current Account

Difference Between Saving and Current Account

The difference between saving and current account is discussed as follows:

1. Meaning

Saving account is opened by individuals for the purpose of saving a part of their income.

Current account is maintained by businessman and others who have to do regular bank transactions.

2. Purpose

The main purpose of opening a saving account is to save a part of the income.

The main purpose of opening a current account is to facilitate regular transactions.

3. Operated by

Saving account is operated by salary earners, small traders and others.

Current account is operated by businessmen and other organisations.

4. Interest Rate

The saving account earns a nominal rate of interest. At present, it is about 5% p.a. (in India).

Normally, banks do not pay interest on current account.

5. Minimum Amount

The saving account can be operated with lesser amount.

To open current account more amount is required.