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Savings Account vs Current Account

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Savings Account vs Current Account

Finance management is a balanced economic process that everyone should know about. Financial management gives you the opportunity to create wealth. To do this, you need to open current and savings accounts in banks. The difference between savings and current accounts lies in the way the banks operate them on your behalf.

What is a savings account in UAE?

A savings account in the UAE helps people in the UAE save money in their bank accounts while earning considerable money at good interest rates. Savings accounts are interest generators and accrue interest over time.

This not only saves the money you deposit but also grows the money into a higher amount. Savings accounts are easier to access and are easily operated to take out and deposit money in it.

While savings accounts are very useful and accessible in the UAE, there is a minimal balance you have to keep in most of them to make sure your money grows at a healthy rate. A savings account is a bare minimum necessity to do financial operations in the country, and if you are earning or receiving money, you should open one at a reputable national bank in the UAE.

What is the current account in UAE?

We have described what is savings account in the UAE is above, and now we know more about what is current account in the UAE is. While the current account type does not pay interest on the money you deposit, it is used for daily transactions as it is easy to access. You can easily use it to withdraw money to handle daily expenses.

 

It also has an overdraft facility that helps you get more money than you deposited when you need it. However, one must use one’s current account wisely to save money. 

Difference Between Savings and Current Accounts

The difference between a current and a savings account is that a savings account saves your money, while a current account is one that is meant for regular transactions. You get interest paid on the savings you have, while you get no interest money with the deposit you have in the current account. 

Another big difference between savings and current accounts in UAE is that there is no overdraft facility with the savings account, but the same facility is found in the case of the current account. The current account usually allows a higher number of transactions, whereas there is a limit to the number of transactions you can make on a savings account. The balance requirements for the two accounts also differ from each other.  

List of the Best current accounts in UAE

Here are the top banks in the UAE that have the best facilities for current bank account openings. To open a current account today, you can approach the following reputed banks in the UAE.

Emirates NBD current account

The NBD current account has higher transaction limits and a smooth opening process. The customer service of this bank in UAE is better than that of others, so it is a good place to open a current account. 

Abu Dhabi Commercial Bank UAE

The ADCB UAE has an overdraft facility and also offers online banking services that help you access the account at any time. You can use the current account directly through the Internet and exercise your right to get money in multiple currencies.

Dubai Islamic Bank Current Account UAE

This bank offers a wide range of banking services under Sharia law and also easily meets basic banking needs. 

Mashreq Bank's Current account

Mashreq Bank in UAE offers online banking services and physical ATM access at different locations with your current account opening. The minimum balance requirement for the Current account is also very low. 

First Abu Dhabi Bank UAE

Current account FAB is a leading bank that offers a comprehensive range of banking services with the current account opening. You can use their mobile banking services with your current account, too.  

Benefits of a Current Account

The current account’s flexibility helps you manage your finances daily very easily. The current account also offers you a good overdraft service, which allows you to have financial freedom. 

The ease of banking with higher transaction limits and an additional range of financial services that you have access to are the multiple benefits of the current account.  

List of the Best Banks for Saving Accounts in UAE

Here are the best banks in the UAE that provide savings account opening services.

Emirates NBD savings account

The Emirates NBD savings account is a comprehensive bank account that helps you save money to the maximum as it does not charge any monthly charges or costs for maintenance of the savings accounts. The interest rates are also very high.

ADCB savings account

One of the best banks for saving accounts in the UAE is the ADCB  because it offers high interest rates and also good quality mobile banking services. 

RAK bank savings account

The RAK bank also offers high-interest savings account features and gives the freedom to maintain it without a high balance amount. You can operate it easily with free online and mobile banking services. 

Dubai Islamic Bank savings account

Global banking opportunities are unlocked with the Dubai Islamic Bank savings account. You can use it with Sharia-enforced laws, and it is easy to access. 

HSBC bank savings account

The HSBC bank has a savings account service that is easily accessible from anywhere in the world. It also offers online banking services with its savings account service.

Benefits of Savings Account

There are multiple benefits to opening a savings account. For example,  a savings account offers a higher interest rate than the best current account in the UAE. If your goal is growing money into wealth, what you need is a good savings account where you deposit the money from time to time.

 A savings account is a safe way of keeping your money and changing it to wealth. The fees linked with its maintenance are also low, so it is a good choice for your business or personal use. 

Frequently Asked Questions on Savings Account vs Current Account

The current account is better than a savings account if you are only looking to do daily transactions and have ease of payment with a higher transaction limit. Depending on your needs and financial status, your current account could be better.  

Banks prefer current accounts because they help them establish better relationships with their customers and facilitate business banking in the UAE. The current account is also great for liquidity management.  

From your current account, you can easily withdraw or transact money for your daily needs. You can also use the current account for overdraft services and other additional services that help in financial management.  

Yes, you can convert the current account to a savings account and use it for your necessary purposes. However, it is a lengthy process that your bank can help you with.  

The low interest rate on your current account and the higher maintenance fees can be disadvantages to your finances. 

It is not generally recommended to use a current account in the UAE for savings and keeping money for wealth generation. 

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