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Finance

By Acura Labs | 23 November 2020

Which One is More Fun: Saving Account or Current Account?

Try to recall, did you ever have a choice of savings, current accounts or credit cards when you wanted to make a transaction at an ATM? As for savings and credit cards, everyone knows for sure, but what about checking accounts? I often hear, but what is that? Come on, we discuss.

Savings and Checking Accounts are The Same

The savings and current accounts are actually the same; They are both products of banking and both can be used to save money or withdraw the money you have. For some people, checking accounts are usually seen as products intended for companies. This understanding is correct, but checking accounts can also be owned personally. Even though it is the same as savings, checking accounts offer several advantages that savings do not have.

First – Transaction Limit

Current limit or limit transactions is much greater than savings. Usually, if you want to transfer via a savings account, there will be a limit per day, for example, IDR 20 million. If the limit has been exceeded within a day, the next transaction must wait for the next day. It is different from current accounts which have almost no daily transaction limits, so that any amount of transactions can be made.

Second – Flexibility to withdraw or transfer funds

image article

If you have a checking account, then you will have 3 options to withdraw money or transfer money that can be observed. Let’s see the explanation from the illustrations.

As seen in the image above, the check facility can be described as the situation of an RT treasurer who comes to your house to collect monthly fees. However, if you don’t have cash yet, you can write a check for a number of monthly dues and give it to the RT treasurer. Later, the RT treasurer only needs to go to the bank to cash the check into cash. Cool right? You can pay monthly fees using checks.

Third – Detailed and complete transaction reports

Transaction recording in a savings book usually only includes a nominal value for each transaction that occurs, but you cannot know the name of the person who transferred it unless using internet banking. Unlike current accounts, you are not given a savings book but periodically you will receive a checking account that contains the complete details of each incoming and outgoing transaction.

So, is it better to open a savings or current account?

It depends, if you really need flexibility with the amount of money that can be transacted per day and alternative types of payments, then checking accounts is a very attractive option. Besides savings and checking accounts, what other products are there in the bank? Look forward to the next article!

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