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Difference between savings account and current account (control)

Before opening an account in a bank, keep in mind that the type of account best suits your needs. If a person wants to open an account to keep his savings to meet his future needs and wants to earn from such savings, nothing better than a savings bank account . However, if a natural or legal person wishes to open an account that can be used until the end of the number of times, during a working day, the Bank account or the Bank account they're the best.

While the savings account is mainly preferred by clubs, associations, individuals, trusts, etc. The current account intended for individuals, commercial entities, government bodies, companies, trusts, institutions, etc.

To further understand this, read the article to get a complete understanding of the difference between a savings account and a current account.

Comparative graph

Basis for the differenceSave accountCurrent profile
Sense Saving a bank account an account designed for people who want to save money to meet their future financial requirements. Current account refers to a current account, in which there is no limit to the transaction, during a business day.
Objective Encourage a person's savings. To support frequent and regular transactions.
Useful to Individual Businessman or company
Interest Paid Unpaid
withdrawals Limited Unlimited
bank book Provided by banks Not issued by banks.
Discovered Not allowed permit
Opening balance You need a lower amount to open a savings account. request a high sum to open a current account.

Definition of a savings account

Savings account is the most common type of deposit account. An account held at a commercial bank to encourage savings and investments, known as a savings bank account. A savings account provides a range of services such as the debit card ATM function with different variants, daily interest calculation, internet banking, mobile banking, online money transfer, etc.

The account can be opened by any individual, agency or institution (if they are registered under the Societies Registration Act, 1860). A Pvt. Ltd and a company Ltd. are not authorized to open a savings account.

Definition of a current account

A deposit account managed with any commercial bank, to support frequent money transactions known as a current account. You are offered a plethora of services when you choose a current account such as payment on permanent instructions, transfers, overdrafts, direct debits, no limit to the number of withdrawals / deposits, Internet Banking, etc.

This type of account satisfies the need for an organization that requires frequent transfers of money in its daily activity.

An individual could open this type of account, Hindu Undivided Family (HUF), Company, Company, etc. Account maintenance charges are applicable according to banking rules. The current account also known as Bank account or a transactional account .

Key differences between savings account and current account (control)

The difference between the savings account and the current (control) account can be traced clearly for the following reasons:

  1. Savings account refers to an account intended for people who keep their savings to meet their financial requirements in the future. Current account (control) an active account that is intended for day-to-day monetary transactions.
  2. The savings account aims to encourage the savings of the general public, while the current account supports the frequent and regular transactions of the account holder.
  3. The Savings Account appropriate for the salaried people and the group of people like the club, the trust, an association of people, etc. For regular savings. Conversely, the current account is perfect for corporate entities, government departments, companies, institutions, etc. Because they have to deal with daily money transactions
  4. There is a limitation to the number of daily and monthly transactions, in the case of a savings account, ie if the transaction limit exceeds the specified limit, supplements may apply. There is no limit for a current account, in essence, there is no restriction on the number and amount of the transaction.
  5. The current account has no interest, but a savings bank account earns interest, which is normally 4-8%.
  6. The booklet provided by the banks on the savings account that lists the number of debts and credits from the account. On the account, no bank pass is issued by the bank to the account holders.
  7. The bank overdraft function provided only on the current account and not on the savings account.
  8. The initial balance required to start a much lower savings account. Instead, the current account requires a large amount as the starting balance to start the account.

Video: Current savings account vs.


  • Application type deposit
  • Internet Banking Facility
  • Multicity Check Facility
  • Nomination facility


We discussed in detail about both entities, and quite clearly that the two are important in place. If we talk about the main difference between them, the number of transactions – withdrawal or deposit.