What is a key distinction between a savings account and a current account in terms of overdraft facilities?
Understand the Problem
The question is asking for a comparison between savings accounts and current accounts specifically regarding their overdraft facilities. It presents multiple choice options, indicating it may be part of a quiz or test.
Answer
Current accounts offer overdraft facilities, savings accounts do not.
The key distinction in terms of overdraft facilities between a savings account and a current account is that current accounts offer overdraft facilities, while savings accounts do not.
Answer for screen readers
The key distinction in terms of overdraft facilities between a savings account and a current account is that current accounts offer overdraft facilities, while savings accounts do not.
More Information
An overdraft facility allows you to withdraw more money than you have in your account, up to a limit, which is often used for managing short-term cash flow needs in businesses.
Tips
A common mistake is assuming both account types offer similar overdraft features. Savings accounts are generally meant for personal finance and saving, with limited transaction options, unlike current accounts.
Sources
- 5 Key Differences Between Current Account And Savings Account - icicibank.com
- Savings vs Current Account - Understand the Key Differences - yesbank.in
AI-generated content may contain errors. Please verify critical information
