Current Account
- For Customers:
- Always a demand deposit account.
- No limit on number or value of transactions.
- Used mainly for business purposes, not saving.
- Banks provide chequebooks and convenient operational facilities.
- For Banks:
- No interest is paid on these accounts.
- Banks charge certain service fees.
- Provides a stable source of funds for banks.
Savings Account
- For Customers:
- Mainly for individuals.
- Also demand deposits, but with restrictions on transactions.
- Deposits earn interest.
- For Banks:
- Attracts individual savings.
- Provides funds for lending, though less stable than current accounts.
- Banks prescribe minimum balances to offset maintenance costs.