If you have both a savings and a current account, their statements reflect different features and different charges. Understanding these differences helps you use each account correctly.
Interest credits
Savings accounts earn interest at 2.5-4% per year, credited quarterly. You will see "INT PD" credits every 3 months. Current accounts generally earn no interest. If your current account statement shows no interest credits, that is normal and expected.
Transaction limits
Savings accounts have no formal transaction limit, but some banks limit free cash transactions to 3-5 per month. Current accounts are designed for high-volume transactions. Current account statements typically show many more daily debits and credits, often from business operations.
Charges comparison
Current accounts have higher minimum balance requirements (Rs 10,000 to Rs 1 lakh depending on the bank and account type). Non-maintenance charges are also higher. Current accounts often have additional charges for cheque book issuance, DDs, and RTGS transactions that savings accounts may offer free.
Business use and income tax
Current account credits are not treated as personal income by tax authorities. Savings account credits can raise questions if the amount is high and there is no salary or business registration documentation. Self-employed individuals are often advised to open a current account to keep business income clearly separated.
Related reading: Understanding Bank Charges on Your Statement, How to Reconcile Your Bank Statement, How to Track Expenses Using Your Bank Statement.