Overdraft Facility for Customers
Another feature of the current account that can be valuable is the facility of overdraft. It means that the current account holder can overdraw the balance in his existing account temporarily to meet the fund requirements that may arise. The overdraft facility of a current account essentially enables short term borrowing from the bank. Depending on the terms and conditions of the bank, there may or may not be interest levied on the overdrawn amount. In contrast to this, a regular savings account does not offer an overdraft facility to its customers. Therefore, in case of sudden financial needs, having a current digital account can be immensely useful.
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Another feature of the current account that can be valuable is the facility of overdraft. It means that the current account holder can overdraw the balance in his existing account temporarily to meet the fund requirements that may arise. The overdraft facility of a current account essentially enables short term borrowing from the bank. Depending on the terms and conditions of the bank, there may or may not be interest levied on the overdrawn amount. In contrast to this, a regular savings account does not offer an overdraft facility to its customers. Therefore, in case of sudden financial needs, having a current digital account can be immensely useful.