Savings vs Current Accounts

 

As a young adult who feels it is time to open a bank account, you should have a clear understanding of the different types of accounts out there, in order to choose the one that best suits your needs.

 

Simply put, savings accounts differ from current accounts in many aspects. Even though each type of account tackles different financial needs of the user, both help in better money management. If you are trying to grow your savings for the future and would like to earn an income from it, then opening a savings account is exactly what you need. However, if you need an account that facilitates frequent transactions using a cheque book, then a current account is what you’re looking for. Needless to say, you can access your money in both accounts through cash withdrawals from the bank or through using your debit card.

 

To make things easier on you, here are the main differences between the savings and current accounts:

 

  1. SAVINGS ACCOUNT

 

Purpose: Savings accounts are designed for individuals who like to save to meet future financial requirements.

Ideal for: Individuals who earn a steady income like salaried employees.

Interest bearing: Yes, interest is calculated on the lowest monthly balance and paid monthly.

Cheque book issuance: No

Overdraft: Not allowed

Opening balance: Generally Low amount is required to open a savings account (however, MINT savings account does not require an specific minimum opening balance)

Maintenance Fees: Applied (however, all fees only for MINT savings account are waived)

Internet banking: Available (upon request)

 

  1. CURRENT ACCOUNT

 

Purpose: Current account, also known as checking account, is designed for individuals/ legal persons to facilitate regular or frequent transactions.

Ideal for: Individuals and/or legal persons, who are required to carry out frequent transactions using cheque books.

Interest bearing: No

Cheque book issuance: Yes

Overdraft: Allowed

Opening balance: Opening minimum balance is required to open a current account

Maintenance Fees: Applied

Internet banking: Available (upon request)

 

To conclude the main difference between both accounts, savings accounts are interest bearing, don’t allow over draft facilities or cheque books issuance, while current accounts provides overdraft facilities & cheque books issuance, but are non-interest bearing.

 

Did you find the article useful?

Would you like to know more about banking offerings?

Do you have any enquires about MINT products?

 

Contact us now & let us is know what you think!

 

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- 03/06/2019

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