Can we get interest on a current account?
We know that a current account is a banking account that is ideally preferred by businesses, rather than having a savings account, which is majorly used by individuals for their personal banking usage. A current account gives businesses attractive deals and offers, and helps them to carry out all their financial business without any difficulty. It is suitable for a higher number of daily transactions and can also be tailored to your specific needs. A current account is, therefore, synonymous with corporate banking. It offers benefits at a much larger scale to match the requirements of a corporate entity. Many of these features are not available in a savings account as personal banking is not as complex as corporate banking.
Savings accounts are well known in terms of giving the benefit of an interest amount to their holders, based on the deposits that they have in their account. While savings accounts are preferred by most individuals, current account are usually used by corporate companies and other institutions. And one benefit of a savings account that is an attraction for many customers, is the interest earned on your savings account. If you have deposited a cash amount in your savings account. Then you are bound to get a certain percentage of money interest on this deposit. This scenario is applicable only when you have a savings account.
Companies, businesses, or anyone with a current account cannot get a similar type of savings interest on their cash deposit.
Although it is common for banks to not give any interest on current accounts, it has been seen recently that some banks have started giving out interest. Even if they have, this is not a common sight and in general, banks do not give out interest on your cash deposits.
As the name suggests, savings accounts are meant, they help people save and park their savings in this account. And while they are doing so, the bank incentivises them into keeping your money with them. In the case of a current account, it is generally considered that the holder will be needing it to carry out huge amounts of financial transactions and more frequently than what an individual may do. Except for interest, a current account boasts of a lot of other benefits and provisions that are otherwise not available in the case of a savings account.
Another thing to keep in mind is, that even though customers enjoy interest on savings accounts, this amount is not considered high. Also, the amount varies from bank to bank.
So, the bottom line is, that a current account cannot get you interest on your cash deposits like that in the case of a savings account. Also, a savings account may be limited to certain functionalities only as opposed to a current account which provides you with endless options and services.
Disclaimer: The above article is subjective and generic in nature. It is for informational purposes only and should not be substituted in the place of professional advice.