A current accounts and savings accounts are the two most common types of bank accounts offered by banks in Nigeria – but what exactly is the difference between the two and which type of account is right for a small business owner?. Conclusion – savings account vs fixed deposit account: Most individuals have savings bank account as digitized payments today mandate the need for a bank account to undertake monetary transactions. Current vs savings account. Also read: Difference between savings account and current account Listed below are the leading points that will brief the difference between a savings account vs current account… There is no limit on number of transactions. Current accounts were designed for business people, while savings accounts were designed for general salaried people. Generally, the volume of transactions in a current account is very high. A current account can be useful for managing your everyday banking, while a savings account can help you put money away to achieve your goals. Current Account vs. Savings Account . Data source: Each bank's website. Requirements: Minimum age: 18 years old & above. On this page, we’ll look at current accounts vs savings accounts in the UK, going in-depth on what each one is and the difference between current and savings accounts. Interest . Eligibility criteria of Current and savings account in UAE are as follows. Savings Account vs Current Account: As an individual small business ( a freelancer or a consultant), a savings bank account may be perfect for you. However, there can be problems if the number of transactions in your Savings bank account increase. For example, in the US you cannot withdraw money from it more than 6 times a month. Saving money in a current account, ISA or savings account provides security of knowing your money is safe, but it's unlikely to provide the best potential return on your savings. Savings accounts also come with lower maintaining balance, typically P2,000 to P3,000 for accounts with ATM cards and P10,000 for those with passbook. that can be done in a single day. To see how the top-rate high interest current account would compare to the top-rate instant-access savings account, we’ve figured out how much interest you would earn over the course of a year with £3,500 to save. On the other hand, the current account is the active account through which one can make frequent deposits or … The person who wants to open the account should be 18 years of age and should be the resident of UAE to gain a current account whereas a savings account is usually provided to both UAE and non-UAE residents by … A current account is almost a basic requirement for any business because of the features it offers to conduct your business effortlessly. APY and fee structure as of December 27, 2018. Current account is a "general-use" account on which you can write checks, use ATM/Debit cards and have unlimited transactions. CURRENT ACCOUNT Current Account deposits fall entirely under the demand-deposit category and the deposits in the current account are payable on demand and they don’t have maturity time period. In the same way, there are many bank accounts with varying features for business banking. One such account is the business current account. Both these accounts address different financial needs of the user, helping in better money management. The interest rate depends on the bank, the type of savings account (e.g., see Money Market vs Savings Account), and the amount deposited, but is always higher than the interest rate on checking accounts. Savings Account Vs Current Account. A Savings account can be opened by anyone, the main purpose of this account is to encourage savings. Savings accounts earn interests on the amount of money deposited into the account, but current accounts do not earn interests. Current accounts and savings accounts are two of the main accounts you’ll be offered by your bank or building society. Checking vs. Savings Accounts Checking and savings accounts can serve different financial purposes. Current accounts are liquid accounts with no upper limit on the number of transactions (deposits, withdrawals, transfers etc.) But while they have some similarities, they also serve different purposes. Another difference between a savings and a current account is that there are various types of saving accounts. (A current account is a type of deposit account that caters to professionals and businessmen alike. A savings account is an ideal choice for someone who is a salaried employee, and for someone who makes frequent transactions on a daily/weekly basis, a current account will be ideal.. Current accounts may also allow borrowing via an overdraft facility. The current account is unlike Savings account in various ways and aspects. Final Thoughts. Most basic savings account offer a nominal interest rate, usually in the region of 0.2% per annum, which is almost insignificant – nonetheless, it is still better to keep your money here as it is covered by Perbadanan Insurans Deposit MalaysiaPIDM. With so many types of bank accounts to choose from, it’s important to know the differences so you can make an informed decision about which account might be right for you. Table of Contents. Savings Account vs. Current Account. Current accounts vs savings accounts. Once you’ve decided which one you need, take some time to look at the different types of accounts so you can find the best one for you. Although no interest is earned on the balance maintained in a Current Account, deposits and withdrawals are unlimited and do not attract a fee. Savings account is an interest-bearing account with certain limitations. Option to have automatic renewal. As with a Savings Account, you can open a Current Account with any public or private-sector bank. The rates on traditional savings accounts have been in the doldrums for a while now, but the PSA will provide a boost to what you can get out of the top deals. Current accounts and savings accounts are two main types of accounts offered by the bank. (Protected by PIDM up to RM250,000 for each depositor) Current accounts also tend to have minimum balance fees. Certain banks allow setting up an account with them for as low as P100 or P500. 1. Savings Account is the account on which the customer is given the interest on the deposited amount. Savings Account: Earn interest on savings. Questions to ask before opening either type of account. As noted above, the current account portion of the CASA does not earn any interest. Current Account vs Cheque Account Current Account. They come with a myriad of facilities like overdrafts, no limit on withdrawals or deposits and more. Also, savings account were created with the purpose of saving money and that’s why provides an interest on the account, while current account was simply designed for the purpose of making it simpler for business people to conduct transactions. Federal law limits certain types of withdrawals on savings accounts to six per month. Updated Jan 13, 2021. If you are looking for a low-risk way to save money over a long period of time, high yield savings accounts may be a good option for you. Current accounts are often regarded as non-interest bearing accounts. Opening a savings account usually requires a lower initial deposit than when you open a current account. As of May 2016, the highest interest rate on savings accounts (in the United States) is about 1%. Both the accounts address the different financial needs of a user and manage money more efficiently. Option to have interest credited into your Savings or Current Account on a quarterly basis. In essence, it’s like a Savings Account, but with add-on features that aid business continuity. Term Deposits Account. Savings Bank Account 3. A savings account is an account that cannot be operated by the use of checks (cheques) whereas for a current account, checks (cheques) are used to operate the account. There are generally no limits on deposits or withdrawals. For example, the OCBC and UOB Current Accounts charge a minimum balance fee of $7.50 if you can’t maintain at least $3,000 daily in the account. Savings Account v/s Current Account A Savings account differs from a Current account in many ways and aspects. When it comes to operating bank accounts, most small business owners don’t know the key benefits and differences between a current account and a savings account. There are many bank accounts with varying features for personal banking. Purpose: A current account is intended for those who do business, like shopkeepers, traders, companies and service organisations. I know there is already a question called “Savings” account vs. “current” account - what's the difference?" Savings account: Account maintained by retail financial institutions that pay interest but can not be used directly as money. SBI's savings account is a basic account that keeps customers' money safe … Here is the explanation why. Minimum opening amount : > RM5,000 for 9-months and above. The difference between savings account and current account is in the interest rates offered for savings accounts. FACEBOOK TWITTER LINKEDIN By Rebecca Lake. A savings account is a bank account that typically earns interest while letting you withdraw money — to a point. Savings accounts always accrue interest. Expand. On the other hand, not every individual or every business has a fixed deposit account. Features are suitable for business purposes . For the purpose of this article, a current account will be referring to a savings account). Current account is for making quick transactions. Both savings accounts and current accounts have different features and are meant for different purposes. Here are the best online savings account interest rates. Current Account 2. 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