What is the purpose of a savings account?

A savings account is the most basic account one can open. It is a suitable option for individuals who would like to deposit their money to keep it safe with the bank. A saving account is ideal for salaried employees or for those who have a monthly income to be deposited in their accounts. A savings bank account is a basic account type that lets you deposit money safely with a bank and helps you earn interest.

Facilities such as ease of making transactions from anywhere through internet banking, debit card, cheques, ATM facilities, saving interest rates, etc. are the benefits that accompany having a savings account.

What is a cash credit account?

Cash Credit account is a type of short-term loan provided to businesses by the banks to maintain the liquidity of the cash flow in the business. It is a form of working capital loan that is usually availed by business corporations. The businesses are allowed with this credit over their current account balance for a period of time. Businesses are allowed to borrow amount above their account balance up to the permissible borrowing limit. The bank will charge interest as per its guidelines and the terms and conditions agreed between the borrower and the lender on the amounts withdrawn, not on the entire borrowing limit.