Current Account vs. Savings Account

Regulated banks are some of the safest places to store money, which is why they’re used by so many people. Every bank offers different account types to meet the needs of different customers, and each type of bank account comes with its own pros and cons.

Understanding how and when you can use different bank account types is an important part of personal finance. To start with, here’s the difference between a Current Account and a Savings Account. Let’s examine the features that make each of these accounts unique.

What is a Current Account?

A current account is a bank account that is designed for everyday use, including depositing, and withdrawing money as needed. Many people use current accounts for their salary, paying bills, withdrawing cash from ATMs, and writing cheques.

Is there a minimum balance requirement?

Some banks have a “minimum balance requirement” that you need to maintain in order to keep your current account open. This means that to open a current account, you’ll have to deposit at least the minimum amount into it. And once the account is open, the minimum balance must be maintained or you‘ll be charged a fee every month that the balance goes below that minimum.

When to use a current account

Current accounts have the greatest flexibility for transactional benefits. These types of accounts aren’t the best for saving money though, since they don’t earn much (if any) interest. However, for going shopping, paying a mortgage, or writing cheques, a current account is a great choice.

What is a Savings Account?

A savings account is a type of bank account for saving money and earning interest on that saved money. Most savings accounts pay some interest, but not a lot, since the money in these accounts can be withdrawn at any time.

While you can still spend or withdraw money from savings accounts, they aren’t the best for daily use. For example, some savings accounts might limit the number of withdrawals you can make per month; some savings accounts don’t come with cheques. So make sure you check out the features of your account.

Is there a minimum balance requirement?

Some banks have a minimum balance requirement to open or maintain savings accounts.

When to use a savings account

Savings accounts can be an excellent choice for short-term savings and emergency funds. A savings account is used mainly for deposits, while the money in the account is easily accessible if the need arises, offering flexibility. You can choose this account to save up for a specific goal in mind, such as a fun trip abroad, buying a car or a deposit for a house..


Financial Wellbeing: The information provided herein is for educational and informational purposes only and is not intended for trading purposes or to be passed on or disclosed to any other person and/or to any jurisdiction that would render the distribution illegal. You may not offer any part of the information provided herein for sale or distribute it over any medium including but not limited to a computer network without the prior written consent of ENBD.

The information provided herein does not constitute investment advice and is not a distribution, an offer to sell, opinion, recommendation or the solicitation of an offer to buy any financial instrument or security. An investment if any, mentioned herein may not be suitable for all investors and if you are unclear about any of the information provided herein, please consult your accountant, banker, broker, lawyer, tax adviser or other professional adviser. You must make your own independent decisions regarding any security or financial instrument.

The appropriateness of an investment activity or strategy will depend on the person’s individual financial circumstances, objectives and needs. Before entering into any transaction, the risks should be fully understood and a determination made as to whether a transaction is appropriate given the person’s investment objectives, financial and operational resources, experiences and other relevant circumstances.

Information has been obtained from sources believed to be reliable but no warranty is made as to the accuracy, completeness, reliability, suitability or usefulness of any information contained herein and no liability in respect of any errors or omissions (including any third party liability) is accepted by ENBD.

Past performance is not a guide to future results or returns and investors should be aware that the value of any investments and the income derived from them may fall as well as rise and they may not get back the full amount invested. Exchange rates may also cause the value of underlying overseas investments to go up or down.

Anything to the contrary herein set forth notwithstanding, ENBD, its affiliates, agents, assigns, directors, employees, officers, representatives, successors shall not, directly or indirectly, be liable, in any way for any: (a) inaccuracies or errors in or omissions from the information provided herein including, but not limited to, quotes or financial data; (b) loss, injury or damage arising from the use the information provided or downloaded herein, including, but not limited to any investment decision occasioned thereby; (c) consequential, direct, exemplary, incidental, indirect, punitive or special damages even if ENBD has been advised specifically of the possibility of such damages, arising from the use of information provided herein, including but not limited to, loss of revenue, opportunity, or anticipated profits or lost business

ENBD reserves the right to amend these Terms at any time without notice. These Terms shall be governed in all respects by the laws of the UAE. Emirates NBD Bank P.J.S.C. is regulated by the Central Bank of the UAE and by the Securities and Commodities Authority of the UAE.

Learn about Savings