I had applied for IBPS for the last 2 years, one of the common question asked is the difference between Saving Account and Current Account, though I have read a lot about it online can someone please provide more details on it as it will help a lot of people who will be appearing for the interview. Does it matter If i going to save money in current account?
Current Account is generally for business purposes and banks pay no interest on the balances held therein but such type of accounts can be helpful to have Overdraft Limits against security or can have a clean (i.e. without any security) overdraft limit. There is no binding of number of transactions in such type of accounts.
Savings Bank account is one in which small savings can be made and earn small amount of interest (which is 3.5% p.a. and paid once in six months) on the balances held in the accounts between 10th day and last day of the month in India. There are some restrictions on transactions in such accounts.
In case you have substantial surplus amount and can spare for longer period, it would be better if you keep them in fixed deposit accounts for longer period to earn some better looking interest.
A savings account gives you interest. You cannot get a debit card for making purchases or set up standing orders from a savings account.Google has lots of comparison sites to find the account giving the higher rates
A current account gives you a debit card for purchasing stuff, you may set up standing orders/direct debits but interest is zero or very small.