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Difference between a Savings Account and a Current Account

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Many individuals starting their jobs or businesses and willing to open their bank accounts are curious about which account is right for them. Savings account and current account are among the most common types of account opened in banks. However, the choice of this selection depends entirely on your banking needs.

Savings Account

Savings account as the name suggests, is for saving your money for a long term. Here are some of the most prominent features of a savings account:

  • In this account, there is a fixed interest earned on that you deposit.

  • The minimum balance in savings account is lesser compared to current account.

  • Interests deposited by banks are beneficial for future Emergencies.

Current Account

Current account is usually an account opened when there would be frequent transactions involved. Some of the features include:

  • Current account is for making quick transactions.

  • They come with a myriad of facilities like overdrafts, no limit on withdrawals or deposits and more.

  • There is no limit on number of transactions

  • Features are suitable for business purposes



Savings Account Vs Current Account


Savings Account: Earn interest on savings

Current Account: No interest earned on deposited money

Number of Transactions

Savings account: After certain amount of transactions, there are high charges

Current Account: There is no cap on number of transactions.


Savings account: Suitable for individuals to deposit salaries and also for saving funds for emergencies.

Current account: Suitable for business enterprises and institutions that make frequent transactions.

Required Balance

Savings Account: The required minimum balance in savings account it low.

Current Account: The required minimum balance is higher compared to savings account.



Current Account

Savings Account


No Interest earned

Earn Interest on your savings

No. of Transactions

Unlimited transactions

Limited number of transactions


Used for business

Build emergency funds

Required Balance

High minimum required Balance


Low minimum required balance

Normally used for

Used for paying bills and business transactions

Used for salary accounts

Suitable for

Business People



While both these accounts have their own set of merits and drawbacks, it is up to the account holder to decide which account to choose. The decision can definitely be facilitated based on their account needs.


You can also visit YES BANK's website to know more about their Savings Account, NRI Savings Account and Personal Loan.


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