Difference between current account and savings account

[Former Member]

Hi,

Apart from interest and charges, are there any difference between current (checking) account and savings account in SAP Banking Services?

Kindly share your views...

Regards,

Kamal

[Former Member]

Hi Kamal,

As far as SAP Banking is concerned, there are fundamental differences in saving and current accounts but technically BS treat Saving Account, Current Account or saving schemes are quite similar. There are features which can be activated, limited and that define the difference between product within BS

1) Fundamentally limit Feature is available for activation for Current Account but BS does not restrict you in activating for Saving Product as well

2) Credit Standing Reviews need to be deactivated for Saving Accounts which could be an essential for current account

These are just a few examples and I can write more but the essence from my perspective is that both product are kind of very similar when you want to discuss the technical aspect of product configuration is . System do not block you from activating the features of Current account for a saving account as it is primarily driven by business decision on how they want to see the product.  BS is quite flexible.

Please Rate the response and let me know your thoughts.

[Former Member]

Hi Kamal,

The major difference is that;

1. Current account(checking account) we activate limit functionalty such as Committed Limit, Tolerated Limit, Seasonal Limit etc. Where as for Saving accounts we are not required to activate this feature. As beacuse, the functionality of Saving account is such as way that it should allow the customer to withdraw only the amount that is leying in his/her account.

2. Saving account can also divided based on Notice products such as Notice Breakable accounts, Notice Unbrekable accounts where customer needs to serve notice period in order to withdraw the funds but the same case is not applicable in case of Current(Checking) accounts.

3. You can introduce lock functionalty in case of Saving Notice accounts which blocked the deposit of customer for certain period of times  and customer can give notice after the exipry of notice lock period but this functionalty is not at all required in case of Current(Checking) accounts.

4. Rates that is going to be offered to the customer will differ for both the products.

Thanks,

Warm Regards,

Anuj Agarwal

[Former Member]

Hi Kamal,

In SAP Banking a major difference between the two is savings account (known as savings scheme ) is just like recurring deposit account wherein each month a certain amount is deposited to the account and it gets accumulated till the maturity date comes ....

SAP does not have the funda of current account or savings account as used in Indian banks.

Hope this answers your question.