Comparison between basic, current, and savings bank account
Posted by steve on August 25, 2008
A regular savings account is the where the consumer can pay his/her bill, it accepts the deposit of money, provides the account holder with a credit card and does not have the facility to enjoy the over draft facility. It allows using the ECS mode of operation from the consumer and while opening a current account, the payment track record of the basic account is considered as a supportive or discarding document for opening and running of a current bank account. There is no overdraft facility available with this type of savings account.
Current account allows consumer to pay the bills money can be deposited in these accounts, provided the consumer with debit card and cash card, overdraft facility and is allowed to set instruction like direct debit and ECS manoeuvrability. By default for the account holder of a current account, bank issues cheque book and guarantee card about the service quality and loyalty of the bank to the customer.
The savings bank account is set for the saving of money for future requirement. This kind of banking account provides interest on the deposit mount and the rate of interest is on the higher side of return on savings and investments. This kind of account accumulates the deposit money and the interest earned in a collated manner. All building societies and banks offer different types of savings account. In saving account the rate of interest is available in two modules, floating and fixed. Before opening a savings account, it is necessary to know how many times in a year the earned interest amount is likely to be credited in his account and what are the differences between fixed and floating option of interest.