Saving account or current account, know which account is more beneficial to open

Saving account or current account, know which account is more beneficial to open

Many people are confused about savings and current accounts as to which of the two will get the most benefit. Today let us tell you about the benefits of both these accounts.

• Which account is best, saving or current? 
• Let's talk about the benefits of both the accounts

Every bank in the country offers many types of account opening facilities. Out of which most savings and current accounts are opened. However, even with these two types of accounts, many people are confused as to which of the two will provide the most benefit. Today let us tell you about the benefits of both these accounts. 

Savings Accounts

Savings accounts help people deposit money as well as save money and grow their wealth over time. It also helps the savings account holders to perform other transactions and avail banking services. Saving accounts are mostly used by working people. A fixed number of withdrawals can be made in this account. The bank has to pay a charge for making further withdrawals. 

Interest facility is also provided on savings account. At present, interest is given between 2.75 percent to 4 percent in government banks and 2.75 percent to 6.75 percent in private banks. Apart from this some banks have linked the savings account with the repo rate of RBI and due to this now the repo rate will improve and the interest rate will also increase.

Current Account 

Current account means current account is also a type of money saving account but it is used more for money lending and borrowing. Current accounts are mostly opened by businesses, entrepreneurs, institutions and other large organizations. Or open to people who need more transactions on a daily basis. Unlike a savings account, a current account is a zero-bearing interest account, it does not pay any interest but provides an overdraft facility to the account holders.

Know which account is best? 

Savings account earns interest at different rates on the amount deposited in the account. No interest is paid on money deposited in current account. Minimum balances and additional charges apply to both savings and current accounts. These charges may be more or less depending on the bank. However, savings account has a lower minimum balance requirement and current account has a higher requirement. If you want to save money, you should open a savings account and if you need money frequently and avail the overdraft facility, you should open a current account .