What is a savings account?
A savings account is a type of account that enables you to deposit money, withdraw it whenever you need it, and earn interest on your deposits. The following details can be used to further clarify a savings account’s features:
- Although there are no restrictions on the amount of money that may be deposited or withdrawn from an account, it is necessary to maintain a minimum balance because failing to do so will result in a fee that will be deducted from the account in a certain amount.
- There is no time limit on how long an account can be managed because it can be operated for as long as the account user wants.
- Banks provide the account holder a fixed savings account interest rate based on the amount deposited.
- You won’t be able to obtain an overdraft if you have a savings account.
- Customers with savings accounts receive debit cards and online banking services for regular transactions, whether they are made online, offline, or at ATMs.
- The total number of transactions that can be made in a savings account per day or per month is restricted.
- Any Indian resident may open a savings account, however children and minors must have their parents or legal guardians open and maintain the account on their behalf.
- Having a savings account helps consumers save money.
Savings Account Versions
You may select from a range of savings account alternatives to suit your needs because they are one of the best ways to save money without having to carry cash. The list of savings accounts offered by various banks, which varies from one to the next, is as follows:
- Regular account
- Salary account
- Zero balance account
- Children and minors account
- Family account
- Women’s account
- Senior citizen account
Each type of savings account has a unique set of benefits, features, and eligibility standards. For instance, a Senior Citizen Savings Account and a Children and Minor Account are different in that the former is only for seniors while the latter is for kids under the age of 18.
A salary account, in contrast, is exclusively accessible to professionals who are paid a salary, but regular savings accounts are accessible to anybody. Therefore, before selecting a bank or savings account, consider which will best meet your needs.
What is a Current Account?
A current account is a type of deposit account that banks provide to people or organisations that intend to engage in a lot of daily financial activity. Simple, ordinary transactions are possible with this sort of account, but it has the drawback that interest cannot be earned. You can comprehend a current account better by using the features that follow:
- While current accounts can be used by individuals for daily transactions, businesses, trusts, associations, and private/public bodies frequently use them for routine operations.
- Although banks have recently begun to do so, this type of account doesn’t often offer interest on deposits.
- You are able to obtain an overdraft using a current account.
- These accounts have higher minimum balance requirements. In the event that it is not maintained current, a fine is imposed and money is taken from the user’s bank account.
- Because current accounts are continuous in nature, there is no predetermined time frame in which they must be used.
- A current account opening requires the submission of KYC paperwork.
- There are no limits on the amount that can be deposited or withdrawn. But the account holder needs to have enough money in their account to carry out the transactions.
Current account Versions
Further categorising current accounts into several versions enables businesses, organisations, trusts, and others. Select the version that best meets their requirements. Some of them are as follows:
- High-end current account
- Conventional current account
- Current account packaged
- Currency currents abroad
You must first decide which bank you wish to open your account with because banks provide a choice of current accounts. After that, thoroughly weigh the benefits, features, and services of each current account option before making a choice.
