1. #1

    Why savings account not current account?

    I have worked in two organisations which are not direct organisation concerns but the franchisee kind or a dealership kind of. In both the companies the employees were provided with a savings account not with a current account for the monthly salary. Does it make any difference?

  2. #2
    Param Array
    Join Date
    Sep 2012

    Re: Why savings account not current account?

    Dear Friend!

    Of course! both are different. With most banks current accounts pays no interest but take maintenance charges. Even if they do, they're usually much lower than savings accounts.
    The only reason to get a current account is so that you can write cheques. You can have both a current and a savings account with the same bank, If you don't intend to write any cheque, there is no point getting a current account.

  3. #3
    Rituja Array
    Join Date
    Nov 2012

    Re: Why savings account not current account?


    Yes,surely it makes a difference.This is because,current accounts are used by people who need access to their account everyday for their daily transactions-like businessman,share holders etc.Rate of interest is very low in current accounts.Whereas,in savings account,you will be getting 4-5%interest ,though there are limitations in accessing saving account.Salary accounts are always savings accounts.Dont worry about it.

  4. #4
    Kangaroo Array
    Join Date
    Aug 2012

    Re: Why savings account not current account?

    Yes,it makes a difference.Few profession requires current savings account but most prefer savings account.This is because:--Almost all employees have savings bank account,it is easy to make.-It acts as an identity and residential proof of the account holder.-It encourages savings habit among the employees.-Transactions can also be made easily.-The employees can also add on to their income through bank interest on the money in their savings account.-EMI can be paid through savings bank account.-It keeps track of all the transactions made and the income of the employees in a year.

  5. #5
    vinnu Array
    Join Date
    Jul 2013

    Re: Why savings account not current account?

    Hi friend.

    Current account, savings account , savevings account (casa)....the current account portinon pays no or very low invest,while the savings portion pays an above average return .

    Current accounts and saveings accounts are the two main types of account on offer....... At a far lesser rate it" s not worth keeping any extra money in the account.

    All the best.

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