There are two types of bank accounts - savings and current. Here’s how they are different:
Savings Bank Account | Current Bank Account |
| A savings account is like a special place where individuals can save their money in the bank. It means you keep it safely in a bank and don't spend it right away. In a savings account, you can deposit (put in) money on which you earn something extra called interest. You can also withdraw (take out) money from your savings account whenever you need it. | A current bank account is a bit different from a savings account. A current account is like a special account for people who have businesses or companies. In a current account, you can deposit and withdraw money whenever you want, just like in a savings account, however, you don't earn interest on your money. The main use of a current account is to help businesses do their transactions smoothly. |
So, the main difference between a savings bank account and a current bank account is that a savings account is for individuals to save money and earn interest, while a current account is for businesses to do their transactions without earning interest. Both types of accounts are important for different purposes. Whether it's saving our own money or helping businesses run smoothly, banks provide different types of accounts to meet our needs.
