Difference Between Current Account and Savings Account

There may be times when you need to make multiple payments, receipts and other transactions, similar to traders and entrepreneurs. They need to access their accounts frequently prefer using a Current Account for this. But what is a Current Account and how does it differ from a Savings Account? Here is a list to help you understand the difference between Current Account and saving account:

  • Meaning 
    A savings account is a deposit account which allows limited transactions, while a Current Account is meant for daily transactions.
  • Suitability
    A savings account is most suitable for people who are salaried employees or have a monthly income, whereas, Current Accounts work best for traders and entrepreneurs who need to access their accounts frequently.
  • Interest
    Savings accounts earn interest at a rate of around 4%, while there is no such earning from a Current Account. A Current Account is actually a no interest-bearing deposit account.
  • Overdrawing
    When you withdraw more money from the account, than is actually there, then your 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.
  • Minimum balance
    The minimum balance required to maintain a savings account is usually low, but for a Current Account it is much higher in comparison..
    This should clarify the differences in the purpose and function of Current Account and Savings Account.

    Having an HDFC Bank Savings Account offers plenty of benefits. If you are looking to open a Savings Account with HDFC Bank, click here to get started.

    Know the top features of a Savings Account here.

* The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.