Has your savings account become incapable of managing your increasing financial needs? Perhaps your transaction amounts are now higher, or your savings account’s cash deposit limits are too restrictive. Maybe your growing business demands more dynamic banking features, or you want access to an overdraft facility to borrow from your account at any time.
If these scenarios sound familiar, it might be time to consider upgrading to a current account. Now, many might wonder if they can convert their existing savings account into a current account. However, is such a conversion possible? Let’s find out all the details.
Is it possible to turn a savings account into a current account?
Converting a savings account into a current account is not possible. While both account types serve crucial financial purposes, they are designed for different uses and have distinct features and benefits that cannot be simply merged or converted.
Why is the conversion not possible? Top reasons
Following are some of the critical factors that prevent the conversion of savings accounts into current accounts:
| Current accounts | Savings accounts | |
| Targeted users | For businessmen, firms, trusts, companies, and associations. | Individuals like salaried employees, students, and senior citizens |
| Interest | No interest income is provided to account holders. | Interest is provided on the deposited amount. |
| Transactions limit | Supports unlimited transactions via cheques, NEFT, RTGS, demand drafts, pay orders, etc. | Restricted number of daily/monthly transactions (varies between banks and savings account variants). |
| Minimum balance requirements | High minimum balance required to accommodate the frequent transactions and the need for liquidity. | Low minimum balance required. You can also open a zero-balance savings account, which comes with no minimum balance requirements. |
| Overdrawing | Overdraft facilities are available, which let businesses withdraw more money than what is available in the account. | Not allowed. |
| Account opening documents | Require more extensive documentation, such as business registration, GST details, and proof of operational address. | Require basic KYC documents such as proof of identity (like an Aadhaar card or PAN card) and proof of address. |
As you can see, converting savings accounts into current accounts does not make sense as it wouldn’t address the core function of either account type.
What alternatives do you have?
Instead of worrying about switching your savings account to a current account, it’s more practical to open a new current account online. Select a bank that offers features and services that meet your financial needs in the best possible way.
For instance, if you want to earn interest on idle balances in your current account, consider the IndusInd Bank Indus Premier Current Account. All you have to do is set a threshold, and any amount exceeding this threshold will be automatically transferred to sweep fixed deposits and earn higher rates.
Following are more value-added benefits you get with this current account:
- A 100% digital account opening process
- Group your current account for easy management
- Benefit from transparent fees with no hidden charges
- Access premium digital banking services
- Enjoy doorstep banking services
Open a current account online and get started with IndusInd Bank today!
Key takeaways
It is evident that both current accounts and savings accounts have different purposes, targeted users, transaction limitations, and features. Hence, despite falling under the umbrella of bank accounts, their functionalities make conversion almost impossible.
If your savings account no longer meets your needs, opening a new current account online with the right bank is the most practical and advisable method. This way, you can enjoy higher transaction limits, dynamic cash deposit limits, access to various payment methods, overdraft facilities, and even the opportunity to earn interest through the auto-sweep feature.
Don’t wait to improve your financial management, apply for a current account today!