Distinguish between the following:
Current account & Savings account
ANSWER:
Basis of Difference
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Current Account
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Saving Account
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Meaning
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It is opened by businesspersons and others who do regular banking transactions.
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It is opened by individuals who wish to save some part of their income
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Restriction on number of withdrawals
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There are no restrictions on the number of withdrawals till the balance in the customer’s account is more than that required.
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There are certain restrictions on the number of withdrawals.
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Mode of withdrawing money
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It is done through cheques.
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It is done through cheques or withdrawal slips.
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Preferred by
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It is preferred by businesspersons, firms and different institutions.
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It is preferred by salaried people.
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Interest given
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No interest is given.
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Interest is given, but the rate is very low.
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Overdraft facility
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Overdraft facility is available.
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Overdraft facility is not available.
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