Question

Distinguish between the following:
Current account and saving account:

Answer 1

Current account	Saving account
An account which is opened and operated by the businessmen, company, firm and others who have regular banking transactions is called Current Account.	An account which is opened and operated by an individual or the fixed income earners to save part of their income is called Savings Account.
Current Accountholders can withdraw money from the bank by using cheques. There are no restrictions on the Withdrawal of money from this account provided there is sufficient balance in the account.	Savings Accountholders can withdraw money from the bank either by use of cheques or by use of withdrawal slips. There are certain restrictions on the number of withdrawals and amount to be withdrawn at a time.
Accountholders get Passbook, cheque book, pay-in-slip and statement of accounts from the bank	Accountholders get Passbook, cheque book and pay-in-slip from the bank.
Generally, no’ interest is paid on the balance standing in this account. It may be given at a nominal rate.	Interest is paid periodically on the minimum balance in this account. The rate of interest is higher than the rate of interest paid on the current account.
Overdraft and cash credit facilities are given to the current account holders only.	Such facilities are not given to these account holders.
It is suitable for traders, businessmen, firms, and institutions.	It is suitable for regular income earners and salaried people.