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What is the difference between Current Account and Savings Account?

# Little Savings

In India, all most all the individuals will have the savings account. Anyone can opt for a savings account. 

The current account will be opened by the business people for the frequent transactions and their immediate funds availability.

Difference between current and savings account? 

In savings account, the account holder keeps funds and available money used for the transactions. 

But the current account is like a loan, based on the business turnover the bank fix the cap value of the current account and will be available for funds transfer. When the user not withdrawn any amount, there will be no interest/charges. Suppose if the user withdraws an amount, the interest rate will be calculated for that withdrawn amount. While repaying the amount, user needs to pay the withdrawn amount + interest. If the user repays the whole amount or maintain the whole amount, there will be no charges. 

In current account, the transactions are frequent and funds available at any time and pays interest only to the withdrawn amount. Unlike loan, the user repays the whole amount withdrawn without any prepayment charges, but pays interest only. 

Recapping, Savings account for the individuals and Current account for the business men. No interest to be paid for withdrawals, charges incur on the withdrawal amount.

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