Financial institutions offer a wide array of products and services, which are designed to improve the financial standing of clients. Whether it’s a fixed deposit or a savings account, it’s important for customers to know the merits of each offer and how to benefit the most from these financial solutions.
Difference between a Call Deposit and a Current Account:
Call Deposits are accounts that are becoming increasingly popular. This type of account allows individuals to place money in accounts and to leave the money in the account for a specific period of time. During this period interest is earned on the investment.
One of the main benefits of having a Call Deposit is that the account is a high interest-bearing account. High-interest savings accounts are an ideal place to keep your emergency fund or any money to which you still need ready access.
A Call Deposit provides you with ready access to most of your cash, while still allowing you to earn a higher return.
A Current Account, on the other hand, is not used for savings or investment. This account doesn’t have an end date, unless the customer specifically requests for a closure.
Payments can be made into and from the account at any time.
A Current Account can be opened in the name of the individuals that are sole proprietors, or those who are running a business under an individual name, as long as the transactions carried out are business-related only.
A further benefit offered by a Current Account is that it may include an overdraft facility.
It’s simple to manage and helps to minimise the amount of time spent on administration.
This type of account offers a secure way of paying and collecting funds. The account makes it easier for you to make deposits, withdrawals and payments to third parties using various channels.
The account generally has cutting-edge security features, so you don’t have to worry about having your personal or business details compromised.
Knowing the difference between a Call Deposit and a Current Account can provide you with the right foundation to make sound investment decisions.