How a Saving Bank Account is different from a Current Account?
1. Saving Bank Account: It is an account opened by a person who wishes to save some part of his income for meeting unforeseen expenses and also future needs. It is also a source of income on the savings made by him. This account provides a nominal rate of interest and a person can deposit as many times in a day. All the entries of deposits made and withdrawn are entered in a small book called Pass Book. The specified rate of interest given by the bank on the amount deposited in the saving bank account keep varying.
2. Current Account: It is a running account for a businessman with a minimum number of restrictions. One can make any number of deposits and withdrawals in a single day. A bank grants an overdraft facility in this account.