30

When I draw money from ATMs or open a new bank account, there's the choice of either "savings" or "current" account.

What's the difference between these two account types?

Improve this question
1
  • "Current" as non-english-speaking countries call these accounts convey the meaning of "flow" as in "cash flow" and not the meaning of "actual" that the word current can have in english.
    – Mindwin Remember Monica
    Commented Dec 2, 2016 at 11:58

2 Answers 2

Reset to default
29

"Current" is another word for Checking, as it is called in the US.

Savings account is an interest-bearing account with certain limitations. For example, in the US you cannot withdraw money from it more than 6 times a month. Here is the explanation why.

Current account is a "general-use" account on which you can write checks, use ATM/Debit cards and have unlimited transactions. It can also have negative balance (if your bank agrees to let you overdraft, they usually charge huge fees for that though). Checking accounts can have interest as well, but they usually don't, and if they do - it's much lower than the savings account interest.

Improve this answer
6
  • No, it says "current account". Here's an example
    – Fitri
    Commented Jun 19, 2011 at 8:23
  • 1
    @Fitri - this is a checking account. Probably in Singapore that's how they call it, but the idea is the same. What I said (specifically regarding the Savings account regulations) is specific to the US, but generally the difference is "interest bearing and savings oriented" versus "transactional-oriented day-to-day usage".
    – littleadv
    Commented Jun 19, 2011 at 8:44
  • 8
    Asia most of the countries call checking account as a current account. They mean one and the same.
    – Dheer
    Commented Jun 19, 2011 at 14:33
  • 1
    Much of the world outside the US calls their checking account their 'current account'.
    – DJClayworth
    Commented Jan 28, 2013 at 14:54
  • 2
    There's no limit on withdrawals for "savings" accounts in Singapore. Probably the only difference is ability to write cheques and fall-below fees.
    – Pacerier
    Commented Nov 27, 2013 at 15:28
5

Typically 'current' means the account from which you do your day-to-day banking (also called 'checking') and 'savings' is an interest earning account, from which you might occasionally take money.

However...you can actually attach these labels (for ATM purposes) to any account you want. They don't have to be your actual checking or savings accounts. I have 'current' attached to my personal account and 'savings' on the account I hold jointly with my wife. They are just labels you attach to different accounts.

Improve this answer

You must log in to answer this question.

Not the answer you're looking for? Browse other questions tagged .