Question

Distinguish between.

Savings Account and Current Account

Answer 1

Savings Account	Current Account
1. Meaning: It is that account which is opened by individuals in order to save a part of their income.	It is that account which is maintained by businessman and others who have regular bank transactions.
2. Withdrawals: Customers can withdraw either by cheques or by withdrawal slips.	Customers can withdraw money by cheques.
3. Documentation: The bank gives a passbook, cheque book, and pay-in-slip book to the customers.	The bank gives a passbook, cheque book, statement of account, and pay-in-slip book to the customers.
4. Who takes it: It is suitable for fixed income groups, wages, or salary earners.	It is suitable for traders, businessmen, firms, or institutions.
5. Restrictions: The customer has certain restrictions on withdrawals.	There are no restrictions on the operation of a current account as long as there is balance in the account.
6. Interest rate: The interest rate is low	Normally interest is not given
7. Nature of Account: It is of continuous Nature	It is of continuous Nature
8. Facilities: No overdraft facility is given.	Temporary overdraw facility is given