What’s the difference between savings and current accounts?

Publish Date: in Finance101

What’s the difference between savings and current accounts?

Compare and choose the most suitable account type for you.

The savings account and the current account are two of the basic banking products, and they are the basis for dealing with any other need with the bank.

 

The current account:

 

Is a non-interest-bearing account and often remains more useful to companies than individuals because it relies on large amounts of cash entering and exiting via checks or bank transfers.

 

Its benefits: 

 

-Its main advantage for companies is the possibility of withdrawing any amount without the need to notify the bank in advance, which is useful for any company that needs to make deals quickly and without complications.

-There is no limit on the number of transactions whether withdrawal or deposit, but of course, this varies from a bank to another.

-The possibility of an overdraft, which is a kind of facility provided by the bank, means you can perform a transaction without having enough balance in the bank, but of course, there's a maximum limit, and an interest added to it.

 

On the other hand, the minimum current account balance is usually high.

 

Both account are the basis for dealing with any other need with the bank.

 

The savings account:

 

 Is an interest-generating account, but the rate is lower than other banking products.

 

Its benefits: 

 

-This account is very useful if you have a sum of money you do not need now, but you may need it soon. It is the perfect account type if you are putting some cash on the side in case of emergencies since there is an interest you will be receiving periodically on the account. 

-The account is estimated to be connected at any time, other than the deposit that is kept tied up for a specified period of time and if you unpack it, you may pay a fee.

-Ability to withdraw at any time, if you don't exceed the daily withdrawal limit.

-Ability to deposit or complete local or international bank transfers at any time.


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