If you have a bank account, you must have heard this. Most of us, are not are not very sure what are these and how they are unique from one another.
Saving Bank Account VS Current Bank Account
Saving Bank Account (SB or SBA) Account and Current Bank Acount (CB or CBA, sometimes also called Checking Account) are two major types of banking accounts. Though both are meant for keeping your money on the bank with all your banking transactions, they have their own scope of using it.
Saving Bank Account
Current Bank Account
|Meant for keeping money as saving deposits and fewer transactions : Non-Liquid Transactions.||Meant for businesses where there will be more number transactions : Liquid Transactions.|
|4 to 6% annual interest is paid on quarterly average balance on each financial quarter.||No interests will be paid by the bank.|
|No Overdraft : The account holder can’t withdraw money more than the available balance.||Overdraft allowed. User can withdraw more than the available balance, within a limit set by the banker.|
|Most banks will set minimum balance in SB account and 5-15 transactions on other bank ATMs per month, except for Salary account.||Not required to keep the minimum balance on CB Account.|
|In most of the banks, there will be maximum amount of transaction can be made. For example, you can do maximum of Rs.10 lac amount of transactions per year. Crossing that, can result in paying extra charges.||In some banks, the account must cross the minimum amount of transactions per year. For example, if you can’t make minimum Rs.10 lac of transactions on your CB Account, you must pay some fees, as set by the bank.|
|Generally used for Salary accounts, personal accounts holders. Account holder name will the person’s name as on documents like PAN Card.||Current account will be created on the name of the organization. Account holder name will be the organization’s name as on PAN Card of the company, for example.|
|Examples : Personal banking account, Corporate Salary account etc.||Examples : Account on the name of Company, Firm or non-profit organizations, etc.|
This comparison is based on my experience in banking and a small research over the internet. I’m considering Indian banks. However, it doesn’t differ much on other countries.
If you find this comparison useful, please support us by sharing/liking on your favorite social networking sites.