Distinguish between:
2. Current account and saving account
Answer:
Basis
|
Current account
|
Savings account
|
Definition
|
Current accounts are those accounts which facilitate their consumers to carry out day to day transactions.
|
Savings accounts encourage their consumers to save.
|
Interest rate offered
|
These accounts offer minimal interest rates or no interest.
|
These accounts offer comparatively higher interest rates.
|
Users
|
They are mostly created by big companies, businessmen, traders etc.
|
They are mostly created by the salary class, farmers etc.
|
Overdraft facility
|
This facility is available for a current account.
|
This facility is not available for a savings account.
|
