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Can I use a savings account as a current account?
Posted on Tuesday, February 28th, 2023 | By IndusInd Bank
Whether you are planning to grow your wealth with long-term investment, or need a bank account for quick & instant transaction – the banking industry offers a host of products to meet all these requirements. Savings account and current account are two such products. A savings account, is meant for an individual to manager their personal funds. A current account is meant for businesses with dynamic banking needs.
But is it possible to use them interchangeably? In this blog, we will discuss the features and purpose of both – savings & current account, and discuss the possibility of using the former to meet your business banking needs.
Can I use Savings Account for my business needs?
It may be difficult to meet your day-to-day business banking with a savings account. As mentioned earlier, savings account has a cap on the transaction frequency, transaction value and maximum deposit limit due to its use case. It is better to open a current account since it allows transactions beyond the scope of a savings account. It’s liquid nature and flexible limits make it a popular choice amongst professionals, businessmen, and for associations, societies and trusts. You can also enjoy premium doorstep banking services like cash/cheque pick & drop, benefits like industry-specific business accounts and pre-approved business loans at attractive interest rate with IndusInd Bank Current Account!
Let’s take a deeper look at why it may not be possible to use a savings account for business purposes.
Current Account – Purpose and Features
Current account is meant to fulfill all banking needs of businesses. It facilitates businesses with frequent number of high-value transactions, with the bank, via cheques, demand-drafts, NEFT, RTGS or pay-orders, etc. It also offers overdraft facility and business loans so that businesses can meet their urgent capital requirements in a quick and hassle-free way. There is no interest income offered to the current account holders due to high level of activity. Additionally, the minimum balance requirement for current account is also high for the same reason.
Savings Account – Purpose and Features
Savings account is a popular account for those who wish to save and earn returns on their money. IndusInd Bank Savings Account is a great way to park your extra funds safely, earn interest income on your savings account balance, enjoy easy access to your money, avail shopping deals, discounts & cashbacks on different brands. It is important to remember that the interest rate on savings account varies from bank-to-bank and account type. IndusInd Bank Savings Account offers attractive interest rate along with BIG discounts & exciting offers! Apart from growing your savings with interest income, you can also send & receive payments, pay credit card bills, pay utility bills, make investments, etc., with a savings account.
Savings Account and Current Account – Key differences
| PURPOSE | Current accounts are designed to cater to banking needs of business owners, small to medium scale enterprises & large corporates. | Savings accounts are meant for individuals who aspire to save money. |
| MINIMUM BALANCE | Current Accounts have higher minimum balance requirements than a savings account. | The minimum balance requirement in a savings account is lesser than a current account. You can even open a zero-balance savings account with IndusInd Bank. |
| TRANSACTION LIMITS | Apart from making direct payments via cheques, demand-drafts or pay-orders, etc., you can also carry out high-value transactions frequently, making bigger deposits than other type of accounts. | The transaction limit in a savings account varies from bank to bank as well as different account type within a bank. |
| DEPOSIT LIMITS | Since they are meant for business banking, current account offers higher cash deposit limits. | The cash deposit limit in savings accounts is not as dynamic as current accounts. |
| OVERDRAFT FACILITY | Overdraft is one of the most beneficial features for a business owner. It provides the account holder the ability to withdraw money over and above their account balance. This amount can be paid back to the bank with nominal interest charges. | There is no overdraft facility on savings account. You can opt for IndusInd Bank personal loan for urgent fund requirements and enjoy attractive interest rates, instant approval & speedy disbursal. |
| INTEREST INCOME | A current account does NOT offer interest income to account holders. | Interest income is the salient feature of a savings account. IndusInd Bank Savings Account offers attractive interest rates so you can GROW YOUR SAVINGS! |
Open IndusInd Bank Current Account NOW!
If you are an earning individual looking to grow your savings, you can open a savings account with IndusInd Bank in minutes and start enjoying competitive interest income on your earnings. If you are a business owner or planning to start a new business, you should opt for IndusInd Bank Current Accounts.
Opening an account with IndusInd Bank is very easy, all you need is your PAN, Aadhaar card & other supporting documents. Enjoy 100% digital and paperless account opening journey from the comfort of your home with video KYC. At IndusInd Bank, both savings account and current account offer the freedom to pick an account number of your choice! So, what are you waiting for? BANK WITH US, NOW.
Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.
