What is the difference between current and saving account?

May i know what is the difference between current and saving account?They say that current account is something to do with cheque and saving is using the owners account to pay....but i still dont understand.Can anyone help me?
What is the difference between current and saving account?
A current a/c is what they call a checking a/c in the West. To open a current a/c, you usually need a minimum sum, like $500. You will receive a cheque book from the bank if you open a current a/c so that you can write cheques and make purchases or pay credit cards bills. You must ensure you have enough money in your current a/c before you write a cheque or it'll bounce. You can check the balance in your a/c either online or thru the phone, using the phone banking PIN the bank will give you.





A savings a/c is more for deposits and as its name suggests, it's to help you keep your savings. A savings a/c earns interest, tho' not much. You can't write cheques out of a savings a/c.





For both current and savings a/cs, you can be issued with ATM cards so that you can withdraw money from these a/cs at ATM machines.
Reply:You confused me ! What is a current account? To answer your question. Go to the bank and ask a personal banker
Reply:YOU HAVE A CURRENT ACCOUNT SO YOU CAN WRITE CHEQUES TO PAY BILLS. A SAVINGS ACCOUNT EARNS INTEREST AND YOU CAN WITHDRAW MONEY TO PAY BILLS OR PAY FOR A BANK CHEQUE TO PAY THEM.
Reply:The word current is likely local to you;


it is not a common business or


banking term.





AND few banks have old "savings"


accounts anymore; they have


Certificates of Deposits.





a checking account directs the


bank to pay from an acct to payees of your choosing, money from your account; it is how 90% of the


people in America pay their


monthly bills.
Reply:A current account is an account that businesses will open in order to have very liquid access to the money. It is constantly having money deposited and withdrawn by the owner of the account. Banks are in a custodial role and rarely pay any interest. Banks can't count on the money to be there at any given moment, so banks can't loan out the funds in a current account.





A savings account is less active and usually does have interest paid on it (if only a tiny percent). Banks can count on the balances being somewhat more permanent and can loan out a portion.





The next step up the ladder would be a certificate deposit account which the owner says I will let you count on possessing this money for a guaranteed set time. And for that promise, the bank pays you higher interest because it knows it can loan out the money while you wait for the CD to mature.





Make sense?
Reply:In Singapore, our bank does have that two options


Honestly I dont know what is that for. But for what I know, if you are checking your saving or withdraw money from your saving. Pick 'SAVING'





If you dont know anything about 'CURRENT', dont pick that option unless you fully know what is it. Beside, you dont have a current account, even if you pick that option, it will say you dont have a current account.





For more information, go to the bank website and look under FAQs