Savings Account and Current Accounts – Know the Difference

Premium savings accounts and current accounts are opened for distinctive purposes and come with different features. Savings accounts are for people who want to save. On the other hand, current accounts are used by people who wish to make regular transactions of companies and firms. 

In terms of interests, saving accounts accrue more interests than current accounts. If you are looking to get more interests, then securing your money in a fixed deposits account is also an option. There are many factors that differentiate the two main types of accounts, and in this article, we are discussing these aspects. 


Savings Accounts 

A saving account has the core purpose of helping individuals to save their money. It allows holders to deposit money as per their convenience and, in return, gain interest. A savings account can be either opened by one person or jointly. Generally, these accounts mandate the holders to maintain a predetermined amount of money as a minimum balance. The interests offered in these accounts can range between 3% and 6%. 

Current Accounts 

Current accounts are designed to facilitate regular transactions. These accounts are generally leveraged by companies, firms, businessmen, public enterprises, etc. These account holders do not earn interest on their deposits. Moreover, there is no limit to the number of transactions you can perform. 


Monthly Transactions 

Savings Account 

Banks that offer savings accounts do assert a certain limit on the number of transactions a holder can perform in a month. Generally, these transactions stand between three and five transactions every month. If you have to do more transactions, there may be charges applied in both financial and non-financial transactions. 

Current Account

There is no limitation of the number of transactions in current accounts 

Minimum Balance 

Minimum balance is the amount that you have to maintain in your account every month. If you fail to maintain the same, it can lead to an account deactivation or lapsing. You might also have to pay monthly charges for not maintaining the required balance. 

Savings Accounts

Typically, savings accounts require you to maintain a minimum balance. However, there are certain account types like zero-balance accounts or savings accounts for senior citizens that do not require compliance with minimum balance requirements. 

Current Accounts 

Current accounts also come with minimum balance requirements. Considering that these accounts are used for regular and heavy transactions, you need a higher amount to retain the minimum balance compared to savings accounts. 



Savings Accounts

Savings accounts are used to save your money, so the fund is likely to stay in the account for a long period of time. This is why banks offer interests in these accounts between 3% and 6%. 

Current Accounts

Account holders of current accounts do not receive any interest in their deposited money. This is because they are provided with the facility of frequent transactions. 

On the whole, savings accounts are ideal for people who earn a regular or steady income. It is perfect for catering to short-term financial goals. Current accounts are for companies, firms, organizations, public enterprises, etc. that carry out heavy transactions on a regular basis.