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Question
Distinguish between the following:
Current account & Savings account
Solution
| Basis of Difference |
Current Account | Saving Account |
| Meaning | It is opened by businesspersons and others who do regular banking transactions. |
It is opened by individuals who wish to save some parts of their income |
| Restriction on number of withdrawals |
There are no restrictions on the number of withdrawals till the balance in the customer’s the account is more than that required. |
There are certain restrictions on the number of withdrawals. |
| Mode of withdrawing money |
It is done through cheques | It is done through cheques or withdrawal slips. |
| Preferred by | It is preferred by businesspersons, firms and different institutions |
It is preferred by salaried people. |
| Interest given | No interest is given | Interest is given, but the rate is very low. |
| Overdraft facility | Overdraft facility is available. |
The overdraft facility is not available. |
| Documents | The bank gives a passbook, checkbook, statement of account, and pay-in-slip book to the customers. | The bank gives a passbook, cheque book and pay-in-slip book to the customers. |
| Nature of account | It is of continuous Nature. | It is of continuous Nature. |
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