Savings Account vs Current Account - For Your Small Business

Yashu Mittal

Wondering if you should open a savings bank account or a current account for your small business? Let us help you understand what these account types are and what account is most suitable for your business type. Here is a complete explanation on Savings account vs Current account.

What is Savings Bank Account?

A savings bank account is pretty much what the word means – a bank account that you can use to save money. Several small scale businesses use a savings account as their primary business account because their earnings and transactions may be limited.

Features of a Savings Bank Account:

Documents Required to Open a Savings Bank Account:


What is a Current Account?

A current account is designed especially for businesses transacting regularly. There are several features that make it a popular alternative for anyone that has more than 10 transactions to make in a month.

Features of a Current Account:

Documents required for opening a Current account:

Savings Account vs Current Account:

As an individual small business ( a freelancer or a consultant), a savings bank account may be perfect for you. However, there can be problems if the number of transactions in your Savings bank account increase. The savings account comes directly under the scanner of the bank’s vigil department and may attract suspicion of fraud on your account if you are not declaring your income correctly.

If you are an organization or a small business employing at least 4 people, getting a current account is recommended. It is more flexible and offers several services like on-demand statements, pick-up, and delivery of cash etc.

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