Savings Account and Current Account
Solution:
Savings Account | Current Account |
1. Meaning: It is that account which is opened by individuals in order to save a part of their income. | It is that account which is maintained by businessman and others who have regular bank transactions. |
2. Withdrawals: Customers can withdraw either by cheques or by withdrawal slips. | Customers can withdraw money by cheques. |
3. Documentation: The bank gives a passbook, cheque book and pay-in-slip book to the customers. | The bank gives a passbook, cheque book, statement of account, and pay-in-slip book to the customers. |
4. Who takes it: It is suitable for fixed income groups, wages, or salary earners. | It is suitable for traders, businessmen, firms, or institutions. |
5. Restrictions: The customer has certain restrictions on withdrawals. | There are no restrictions on the operation of a current account as long as there is balance in the account. |
6. Interest rate: The interest rate is low | Normally interest is not given |
7. Nature of Account: It is of continuous Nature | It is of continuous Nature |
8. Facilities: No overdraft facility is given. | Temporary overdraw facility is given |
