Savings  Account v/s Current Account

At an ATM, we always have the option of choosing between a Savings Account or a Current Account. These are two types of accounts that have been created to serve different objectives and meet the financial needs of different types of users. Current accounts and savings accounts are offered by almost all major banks in India as SBI, ICICI, Axis, Kotak Mahindra Bank, HDFC Bank, Citibank, YES Bank, IndusInd, and many more. However, both accounts are different from each other in several aspects.

Savings Accounts

A savings account is an interest deposit account held at a bank or other financial institution that provides a modest interest rate. Banks or financial institutions can limit the number of withdrawals you can make from your savings account each month, and they can charge fees unless you maintain a certain average monthly balance in the account.


Current Accounts

Current accounts derive their name from the purpose and for regular transactions. This type of account is more suitable for users like companies, firms, entreprises, etc. Current accounts do not generate interest due to the fluidity they offer. Current accounts generally do not have a limit on the number of transactions that can be performed.

Savings Account v/s Current Account

Savings account varies from a Current account in several aspects. Both these accounts address different financial needs of the user, helping in better money management. Here are some of the major points one can distinguish between a Savings and a Current Account.


  • Savings Account: Savings Account is to promote savings.
  • Current Account: Current Account is for regular transactions.

 Monthly Transactions

  • Savings Account: There is a limit for transactions.
  • Current accounts: No limit on the maximum number of transactions which one can carry out.

Minimum Balance

  • For Savings accounts, minimum balance required is low.
  • For Current accounts, one may need to maintain a relatively higher amount as minimum balance.