Choosing the Right Emirates NBD Bank Account: Current vs Savings

Choosing the Right Emirates NBD Bank Account: Current vs Savings

Choosing the right bank account is crucial whether you are a student, young professional, midcareer or someone looking at retirement. There are two main kinds of accounts you will be looking at: current and savings accounts.

The difference between current and savings accounts

What is a current account?

In simple words, a current account is an account where you have easy access to your funds and there is no limit to the number of transactions you can carry out. A current account generally does not pay interest, but the Emirates NBD Special Current Account does.

While current accounts are used more for business, regular bankers you can do a lot with current accounts too: -

Pay bills Use debit card for any purchases Withdraw money from ATM machines Transfer money locally or internationally Have easy access to your balances via online or mobile banking

Although, current accounts are convenient there are a few things to be mindful of when opening one: -

The limitation on daily withdrawals Fees for business transactions Benefits of the account may be lesser then those charges involved.

Let’s have a look at savings accounts: As the name implies, a savings account is good to save money and earn interest.

You can save a fixed or variable amounts monthly, set up recurring deposits or even fixed deposits to take advantage of higher interest rates.

Here are some benefits of savings accounts: -

Financial freedom: Your savings make you financially secure to tackle any emergencies or unexpected expenses.

Flexibility: You can access your money at any time but if you break a fixed deposit, you may lose out on interest.

Better interest rates: Banks often offer better interest rates on these accounts to encourage you to save more.

Budgeting: Building on the habit of saving helps you budget better and live within your means while saving for the future.

With all the benefits savings accounts have to offer, there are a few things to remember: -

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Interest on savings accounts can be less compared to other forms of deposits and investments, unlike the EmiratesNBD Smart S@ver account which earns 1.25% interest on daily closing balances.

Some banks may have a minimum balance requirement.

Both current and savings account help you keep your money safe, whilst offering you benefits.

It’s important to know what you want from your account before you decide what kind of account you need. Make sure to read all the terms and conditions for any hidden fees or any minimum amounts that are avoidable.