Choosing the right bank account is a basic but important decision. Savings accounts suit individuals and earn interest; current accounts are designed for businesses with frequent, high-value transactions.
This guide compares the two so you open the right one.
What is Current Account vs Savings Account?
A savings account is meant for personal savings, pays interest, and has limits on the number of transactions. A current account is meant for business, allows unlimited transactions and overdraft facilities, but usually pays no interest and needs a higher minimum balance.
Most registered businesses are expected to transact through a current account.
| Savings account | For individuals; earns interest; transaction limits |
|---|---|
| Current account | For businesses; no interest; unlimited transactions |
| Overdraft | Available on current accounts |
| Minimum balance | Higher for current accounts |
Frequently asked questions
Can I run my business from a savings account?
It is not advisable. Banks expect business transactions to flow through a current account, and heavy activity on a savings account can trigger scrutiny.
Does a current account earn interest?
Generally no. Current accounts are built for transactions, not returns.