Let’s take a look at the differences between the two categories of the accounts- Current Account and Savings Account – which will guide you to settle on the appropriate account for you.

CURRENT ACCOUNT
It is mostly used for business transactions or by salary earners because of the following reasons;
1) It allows third party withdrawal- issuing cheques to others.
2) There is not limit on the number of withdrawals. The holder of the account can withdraw as many as he/she wants.
3)Current Account cheques can be deposited into an account with different bank (it is permitted for inter bank transactions ).
4. Account holders can access for Overdraft or Salary Advance.

SAVINGS ACCOUNTS
This account helps to build funs for future use or contingency. This account is for a certain purpose and the holder of this category of account must make deposits into it and stick to the purpose of the account. It also has the following features
1) It does not attract monthly charges (COT)
2) The account holder earns interest periodically(monthly).
3) There is withdrawal limit on account which will prevent the holder to misuse the fund (The depends on the type of bank) .
4) It does not allow third party withdrawal- providing complete security to the account.

If you need an account as a salary earner, I will recommend Current Account to you because it has no limit on a number of times to withdraw, you can access your fund as and when you need it. You can also send someone to make withdrawals on your behalf.

NOTE
The fact that you have a current account at a bank does not mean you cannot have a savings account. As a salary earner you need to save a portion of your salary for future use. I will advise you to open a savings account at the same bank or different bank to save a portion of your salary for future use. Thank you.

By:
Emmanuel Miezah – Banker
Richfield Quarshie – Consultant