Current and Savings Bank Account are the two basic types of bank accounts in India. Depending on your purpose, you can select any one of the accounts to open in the bank. Therefore, you should know the exact difference and features of these two types of bank accounts before you decide to open one.


Savings Account?

A savings account is a very basic type of bank account. This account is good for people who want to have some small savings and money for everyday expenses. Also, banks give interest to the amount that is kept in this account. So your money grows slowly.

Current Account?

For the people who are doing business, the current account is the best. This account is not made for savings or investments.

Points Current Account Saving Accounts
Purpose Many Transations To Encourage Savings
Ideal For Business Person  Salaried Person
Minimum Amount Higher Amount Less Amount
Interest Rates No Interest paid 3%-5%
Over Draft Allowed Not Allowed


Differences Between Savings And Current Bank Accounts

1] Intention

  • A savings account is for saving money and a small amount for everyday expenses.
  • A current account is for business transactions which are quite frequent and may involve high-value fund transfers.

2] What kind of Customers will need it

  • A savings account is useful for normal individuals like salaried people or a person on daily wages etc.
  • A current account is useful for companies, institutions etc. Any sole proprietor can also open a current account in his name.

 3] Maturity

  • Both the savings and current accounts do not have a maturity period. That means that they do not have a fixed period of time for which they will be active.

 4] Interest

  • A savings account offers interest on the amount of money that is deposited in that account over a particular period of time. This interest is often given annually by most banks. This interest rate differs with different banks.
  • A current account does not offer any interest.

 5] Maximum Number Of Free Transactions

Savings Account:

  • This account has a fixed number of transactions per month.
  • The number of free transaction differs with different banks.
  • When you cross the limit of free transactions, the bank imposes small charges on every transaction you make in that month.

Current Account:

  • Current accounts have unlimited free transactions.
  • This is because they are made for business transactions and they don’t offer any interest on the amount that is deposited in the account.
  • Some banks may charge small fees for transactions over a certain limit. This limit is very high compared to the savings account.

6] Requirement of Minimum Balance

Savings Account:

  • A savings account needs to have a minimum balance. This amount is different for different banks.
  • If the minimum balance isn’t maintained, then the banks levies penalties on the account.
  • This penalty is again different for different banks.

Current Account:

  • A current account also needs to maintain a minimum balance.
  • This balance is usually much higher when compared to savings accounts.
  • This balance also differs for different banks.

7] Facilities Provided

Cheque Book

Both the savings and current bank accounts are provided with a cheque-book.


  • Savings accounts do not provide this facility.
  • Current accounts have this facility. The maximum amount limit depends on the bank account and the bank.

Hope you found this article helpful. For further queries or suggestions, please leave a comment below.

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