A time to ask, what is the difference between savings account and currently account in Nigeria? We have been hearing Savings Account and Current Account over the years, who really know the difference? i guess only few of us do know, if you are among those of us who still don’t know the difference, this post will make a little impact to our knowledge.
First let me introduce myself, name is ‘Ogheneserome Daniel‘ popularly known as ‘SEROME‘. i am the co-founder of informationhood, i have passion of sharing my little knowledge with others. I have once ask this question before though mine was directly to the bank officials, at that time internet usage was not these popular as it is today.
These two mentioned accounts are the most popularly known account types in NIGERIA and very commonly mentione. When you want to open a new account with a bank you would want to know what each of these accounts offer and why you should go for it.
Difference Between Saving Account and Current Account in Nigeria
Now let’s get serious, A savings account is primarily for the purpose of saving according to my friend. Depending on your bank, it requires little or no amount to create. This account is the most widely recognized sort of deposit account. An account open in commercial bank, for empowering reserve funds and investment is called as a Saving Bank Account. Saving account gives a variety of facilities such as ATM cum Debit Card facility with distinctive variations, figuring of interest regularly, internet banking, online cash exchange, mobile banking and so forth. Most banks now offer free saving account, which means you can open an account without a damn. The savings account also offers a certain percentage of earned interests for customers, which are guided by the bank’s terms and conditions such as a number of withdrawals within a specified timeframe.
According to the name, a savings account warrant you to save for future usage or plan, money that you don’t have immediate use for can go into your saving account and you have all access and permission to withdraw at any time, it is advisable to start with this account. Benefits of having a cheque book and third-party transactions are not available for savings account.
A current account, on the other hand, is account foe business, this account is suitable for all kind business in purposes with an unlimited number of withdrawals for running daily transactions. Many facilities are given to you, when you open a current account such as direct debits, internet banking, overdraft facility, transfers and so on. In current account, any amount can be withdrawn or deposited whenever you want and without giving any notification. It is additionally suitable for giving payments to lenders by giving cheques. This kind of account satisfies the many needs of an association that requires regular cash transfer in their daily activities. This sort of account can be opened by an Individual, Company, firm and so forth. The current account is also called as “Demand deposit account” or “transactional account.” It requires a certain amount of deposit to create after which accounts can be withdrawn anytime till zero. On current account Cheque books and third-party withdrawals are offered by the bank, this make it available for the account owner to issue a cheque to a third-party for withdrawal easily. The account owner issuing the cheque is known as the drawer while the third-party in whose favour the cheque is paid is called the payee. Interests cannot be accrued on current account.
For better understanding, a friend took his time to anylise this high difference in this two typeof accounts.
Saving Account VS Current Account
Here are some contrasts that exists in these two types of account
Saving account is a deposit account in bank that energizes saving of an individual.
Current account is a deposit account in bank that which helps individual in frequent money transaction related with a business.
- Best for:
Saving account is best for individuals or we can say for salaried individual.
Current account is best for companies or business man.
The main purpose of saving account is to encourage the people to save from their salaries.
The main purpose of current account is to help the individual where more than one transaction is required.
In saving account, interest is there on deposited amount.
In current account, no interest is there on deposited amount.
- Minimal amount:
To open a saving account, smaller amount is required.
To open a current account, higher amount is required as compare to amount required to open saving account.
In saving account, no facility of overdraft is available for individuals.
In current account, facility of overdraft is available.
In saving account, limited withdrawals are available.
In current account, unlimited withdrawals are available.
- Pass book:
In saving account, pass book is issued to individuals.
In current account, pass book is not issued to businessman or companies.
This is the different between savings account and current account, all thanks God for be able to learn something new today. Now you can tell which account to go for at this time of your life. But which bank offer the best savings and current account in Nigeria? That is a topic for another post.