Current Account vs Savings Account: Differences and Benefits

SINGAPORE, Dec 15, 2023 – (ACN Newswire) – Current and Savings Accounts are the most common bank accounts that people own in Singapore. While both Current and Savings Account allow you to carry out transactions via ATMs, debit cards and digital banking, they have distinct features and work differently to fulfil specific financial purposes. Let’s take a closer look at the differences between a Current and a Savings Account.

Current Account vs Savings Account


A Savings Account is where excess funds not needed in the near term are deposited. On the flip side, a Current account is meant for carrying out day-to-day transactions, including paying bills and withdrawing cash. If you run a business and need to carry out significant transactions daily, having a Current account will be helpful.


Savings Accounts typically offer base interest rates of 0.05% to 0.25% per annum. Still, some banks may offer bonus interest if account holders fulfil certain criteria, such as meeting the minimum spending requirement or crediting their monthly salaries to the account.

Since Current Accounts are not meant to hold large sums of money for extended periods, they usually generate little to no interest.

Transaction Limit

Savings Accounts are usually imposed with daily transaction limits, which means that account holders can only pay or transfer a certain amount of money daily. On the contrary, Current Accounts usually do not come with transaction limits.

Overdraft Facilities

Current Accounts generally offer overdraft facilities, which enable account holders to withdraw more funds than the account balance. Savings Accounts do not offer overdraft facilities.

Minimum Balance Requirement

Current Accounts typically have a higher minimum balance requirement than Savings Accounts. A fall-below fee is applicable if the account balance falls below the minimum balance requirement. This is true for both Current and Savings Account.

Benefits of Current Accounts and Savings Accounts

Here are some benefits of Current Accounts and Savings Accounts you may wish to consider:

Benefits of Current Accounts

No transaction limits , making it easy for you to transfer money for your daily or business needs.

Access to overdraft facilities , which allows the withdrawal of more funds than what is available in your account. This is particularly helpful when you or your business have urgent cash flow needs.

A convenient mode of payment with access to ATMs, cheques, debit cards and digital banking.

Benefits of Savings Accounts

Interest-bearing, which means that account holders can leverage the power of compounding and increase their balance significantly over time as they continue to deposit funds in the Savings Account.

Ease of withdrawals, making Savings Account an ideal place to park your emergency funds.

A convenient mode of payment with access to ATMs, debit cards and digital banking.


To decide whether a Current or a Savings Account, which is more suitable for you, consider factors like your financial needs, cheque book options, minimum balance requirements and any monthly/transaction fees. It will also be prudent to compare accounts offered by different financial institutions to make an informed decision. Remember that you are not limited to opening only one account – feel free to open multiple accounts if that is necessary for your daily needs.


The content reflects the view of the author of the article and does not necessarily reflect the views of Citi or its employees. Please read the products and offers on Citi Singapore website for accuracy or completeness of the information presented in the article.

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Sonakshi Murze

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