Savings Account and Current Account


Posted September 1, 2017 by ashabansal

There are many bank account types which are offered in India by banks. To concise it, mainly 4 types of accounts are maintained- current account, savings account, recurring deposits and fixed deposits.

 
There are many bank account types which are offered in India by banks. To concise it, mainly 4 types of accounts are maintained- current account, savings account, recurring deposits and fixed deposits. And the most commonly used in all the above 4 is savings account.

Savings account are maintained by the individuals to stash their savings in one place and withdraw it whenever required. The reason why the individuals prefer this account is because they offer interest rates (generally 4%) on the amount. And on top of that the banks provide other banking facilities like cheque, withdrawals, etc. Also, there is a tax benefit of up to 10,000 rupees interest earned per year. If an individual earns beyond 10,000 rupees as tax, then they would be charged tax.

On the other hand, current accounts just cannot be used for saving purpose. These are used to facilitate business transactions and is generally owned by companies.The benefit of these accounts are to indulge in multiple transactions. Also the account owner has the facility of overdraft, ie using more amount of money than what is available in the account.

Q1. What account types do banks in India offer?
Ans. Banks in India offer 4 types of deposit accounts—current account, savings account, recurring deposits and fixed deposits. Many banks have come up with hybrid accounts, i.e, accounts that combine features of two or more of the above mentioned traditional accounts.

Q2. What is Savings account?
Ans. A savings account is an account where individuals stash money with the bank, assured that they can withdraw their hard earned money as and when they require. There’s no maturity period and as per a recent RBI regulation, no minimum balance requirement (no-frills accounts).

Q3. What are the benefits of a Savings account?
Ans. The benefits of a savings account are varied. For starters, such accounts offer cheque facilities, flexible withdrawal options and a minimum rate of interest of 4% on deposits. Some private banks such as Yes Bank and Kotak Bank offer as much as 6-7% rate of interest on deposits.

To know more about Savings account and current account, you should go and read an article http://www.loankuber.com/content/investments/savings-account-and-current-account/. This is very informative and also has more articles on investments.
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Categories Banking , Business , Finance
Tags banking , current account , money , saving , saving account
Last Updated September 1, 2017