Basically in the Commercial Banks, there are several kinds of accounts that can be opened and accessed by a customer. Out of all the accounts, Savings and Current are the most used.
What is Savings Account?
Bank Savings Account is one of the most effective ways of saving money in the most recent times. This account is provided by several Banks and financial institutions, to enable their customers save and withdraw their monies at will and still make little interest from their savings.
Earlier before now, they were several methods of saving money and other valuables. Unfortunately, those methods although they make more easily accessed, saved without charges; they were prone to disadvantages like: stealing/theft, insecurity, reduction in value through inflation and as well, there were no insurance. So all these are what the bank stands to protect an individual from through their professional operations.
Now, what is Current Account?
This is a kind of bank account which gives an individual access to make operations especially withdraw through third party. Remember, this is usually done with the use of Check book. However, charges deducted for the maintenance of current account on every withdraw or transfer made.
Requirements for opening a Savings Account
- Valid identification card such as;
- voters card
- drivers license,
- international passport,
- Passport photographs
- Copy of a recent utility bill.
- Completion of Know Your Customer (KYC) Form which will be issued by the bank.
What are the requirements for opening of individual current Account
- A recent passport photograph (at least 2 copies)
- Valid identity card, such as;
- drivers license
- voters registration card
- International passport, or
- national identity card.
What are the bank requirements for opening of current account for corporate entity or organizations
- Copy of Certificate of Incorporation, from Corporate Affairs Commission.
- Completed Signature Mandate.
- Memorandum and Articles of Association;
- Board Resolution authorizing the opening of there account.
- Passport photographs for each signatory;
- Verification of address (e.g electricity bill, water bill, etc.);
- CAC form C07 and CAC Form CO2;
- Special Control Unit Against Money Laundering certificate where applicable.
NOTE: This account can have more than one signatory as may be deemed necessary by the Organization.
What are the similarities between savings and current account?
- Both Savings and Current Accounts use ATM.
- The two accounts can be operated by individuals and organizations.
- Both accounts gives customer access to make savings and withdraw.
What are the differences between savings and current account?
- Savings account uses ATM and bank withdrawal slips; while current account uses ATM and Checkbook.
- Current Account gives access to third party withdraw through Checkbook, while savings account does not.
- Savings Account has bank limit on deposit and withdraw, while Current Accounts is limitless so long as you have the money.
- Currently Account makes extra charges for every withdraw/ transfer, while Savings Account does not.