Jasz
VIP Contributor
Here in Nigeria I noticed an average man will want to own an account in the bank, the next thing they will have him open is a savings account, I feel unless he objects and with a concrete reason.
So What are Savings and Current accounts and what advantage do they have over another?
Both savings accounts and current accounts allow you to deposit money into the bank and withdraw money from it. The main difference is that a current account is designed for frequent transactions, while a savings account is designed for less frequent transactions, typically with the goal of earning interest over a period of time.
Savings account is designed to be kept untouched, while a current account is designed to be used often. Well this is not the case here in Nigeria, I own a savings account and I access it frequently like a current account, in fact I won't call it a savings account if that's the main use, also, I don't see reasonable interest accruing over time, all I see is addition and subtraction of some cash.
Current accounts are also called checking accounts in the US. Savings accounts are a type of deposit account that generally earns higher interest than other deposit accounts. Current accounts are a type of transaction account that is primarily used for making routine payments.
Another crucial difference between the two types of accounts is that current accounts usually require a high minimum balance and often have monthly fees if the minimum balance isn't maintained. Savings accounts, on the other hand, usually have low minimum balances and no monthly fees. Has any one observed any of these, or am I just mincing something up?
So What are Savings and Current accounts and what advantage do they have over another?
Both savings accounts and current accounts allow you to deposit money into the bank and withdraw money from it. The main difference is that a current account is designed for frequent transactions, while a savings account is designed for less frequent transactions, typically with the goal of earning interest over a period of time.
Savings account is designed to be kept untouched, while a current account is designed to be used often. Well this is not the case here in Nigeria, I own a savings account and I access it frequently like a current account, in fact I won't call it a savings account if that's the main use, also, I don't see reasonable interest accruing over time, all I see is addition and subtraction of some cash.
Current accounts are also called checking accounts in the US. Savings accounts are a type of deposit account that generally earns higher interest than other deposit accounts. Current accounts are a type of transaction account that is primarily used for making routine payments.
Another crucial difference between the two types of accounts is that current accounts usually require a high minimum balance and often have monthly fees if the minimum balance isn't maintained. Savings accounts, on the other hand, usually have low minimum balances and no monthly fees. Has any one observed any of these, or am I just mincing something up?
