Nigerian banks offer different types of accounts, but the most popular accounts are savings and current accounts. It is important to understand the major differences and benefits of savings and current account in Nigerian financial institutions.
Whether you are an individual client or business owner, it will be easier if you know how two account types differ from each other before you go to your bank and open an account. You’ll save your time and make this process really simple and quick.
Just like its name says, this is a bank account that lets users save their money. It is a great option for workers and businesspersons who have regular solid income (through business projects or salary) and a financial dream they want to come true.
Such accounts can be used to save money for a summer vacation, purchase of a car or apartment etc.
Maximum amount in savings account in Nigeria
It is an easy way to manage your extra finances and multiply your income. There is only a limited transaction allowance per month. It is impossible to earn any interest rate on such accounts but you can withdraw everything you have earned leaving as low as 0 Naira.
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The name of this type speaks for itself as well. Such accounts are usually created by small businesses, public people, companies, and individuals who need to use bank transactions. It doesn’t mean the transactions have to be regular ones. Frequent operations with money would also work.
Such accounts are flexible. Money comes and go. A person who has such a bank account can work at a company or be a businessperson whose number of transactions through the current account is not limited to a particular figure. This account comes with a cheque book and an unlimited amount of daily withdrawal.
Difference between current and savings account
Unlike the current account, a savings account is designed to preserve money to help you save them for something important and even earn some interest depending on the bank. Its main difference from current account balance cannot be withdrawn up to zero.
Current accounts have an end date after which they can be renewed by the owner. Saving accounts have no end day. Only the client can request to close it.
Banks in Nigeria mainly offer two common accounts and now you know about the difference between savings and current account. These two options fulfill two different financial needs.