Savings account is the most opened and used type of account by majority of people. Even banks encourage opening of Savings account over Current account; this is because it pays off and favours their operations, unknown to many bank customers. No one can do without a Savings account, but there are many advantages of Current account over Savings account, they are as follows:
1. You can lodge in your cheques: In most banks, hardly can you lodge cheques into a savings account. Being an operator of a current account affords you advantage of easily lodging your cheque into it.
2. You can use it to get your dividends: If you are an investor, most brokers and agents require you have a current account to receive your dividends. Many don’t have a Current account because they are allowed to receive their salaries through Savings. You don’t need to wait till it becomes urgent before you open a Current account for yourself.
3. It can never be dormant: Savings account can become dormant, however, Current account don’t. You don’t need to re-activate your Current account; once you open it, you can use it at any time you wish. It is always current as its name implies.
4. No limit is placed on Current account: For Savings account, there is a minimum amount that needs to be left behind after withdrawal. Meanwhile, in Current account, you can withdrawal everything you have in your account. In most banks, no matter how minimal it is, there is minimum amount you leave behind in your Savings account, while for Current, it is zero.
5. It can accommodate a bigger amount: For all types of Savings accounts in all banks, there is a limit to the amount your account can hold, but when it is a Current account, it can receive any amount.
These are five advantages of Current account over Savings account; notwithstanding, you can’t do without any of them. Hence, it is better to operate the two types of accounts for a better financial buoyancy and credibility.
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