Almost all the banks in India offer both the current accounts and savings accounts. These bank accounts are different from each other. Many find themselves confused between the savings and current accounts. These form the significant types of bank accounts. They serve different purposes and hence, have additional features. Savings accounts are designed for the people who want to save their money in that account. Current accounts are curated for regular transactions of business companies.

There are other differences between the two. For example, savings accounts provide higher interests than current versions and belong to the individuals, unlike current accounts, that are mostly owned by the companies. Savings accounts may have a monthly transaction limit, while a current account does not have any limit.

Let us get to know these aspects before going for online account opening:

Savings Accounts: The primary purpose of the savings account is to help you save. You can keep depositing money in this type of account, and the account holder can earn interest too. You can open this account individually or jointly. You need to maintain a minimum balance too. The interest rates on Savings Accounts can be between 3 to 7 per cent. 

Current Accounts: Current Accounts are for regular transactions. Firms, companies, or public enterprises hold this type of account. You cannot earn any interest on the current account. Current accounts do not have a capping on the number of transactions that you can make.

Both these accounts are meant for different financial needs of the customer. You need to understand the difference well before you open account. A savings account is perfect for the individual who earns a regular income and likes to save a part of his income. The people who have short term financial goals to meet future needs such as a wedding, buying property or car, vacation, etc. can also use a savings account. At the same time, individuals who deal in frequent money transfers such as a shopkeeper, businesspeople, firms, and companies open current account online.

For current accounts, banks do not provide any interest on the funds you have in the current account, since the money in the account is for short term and is more fluid in nature.

Also, there is a difference in the minimum balance requirement of the two accounts. Minimum balance is the money that you must have in your account to prevent the same from penalty or de-activation. In a savings account, the minimum balance required is less, but for current accounts, you need to maintain a higher minimum balance.