There are different variations of type of accounts being offered by banks or financial institutions in Australia such as savings account, transactional account, term deposit account etc. Each of these types vary in the terms of interest they pay on deposits, accessibility conditions and modes of transactions and access.  Here we provide a comparison between the features of the savings account and a transactional account.

Savings Account: A savings account, as the name suggests, is used of the purpose of saving some money from your regular income. The savings account holds your deposited money and pays you some interest on the same. That is how you earn from your savings account. The terms of accessing your deposits, withdrawing them or transferring them are somewhat restricted.

Transactional Account: The transactional account is primarily aimed at making regular transactions through various mediums provided by your account. The interest rate payed in such type of accounts is generally nil or else very less. In return, transactional account provides you the freedom of accessing your deposits by withdrawing them or transferring them. There are several mediums provided for these – debit cards, cheques, account transfers and online transfers.

Savings accounts and transactional accounts solve two different purposes. A savings account is aimed at accumulating money wherein you will take out some chunks of money from your income and put it in a saving account which will give you a repository which you can use in future plus it earns you some amount of interest. On the other hand, a transcational account is used when there is a lot of bi-way flow of money. You should be able to conveniently make transactions through multiple mediums without caring much for the interest being paid. This is generally used for commercial or professional purposes for making and receiving payments.

Savings accounts and transactional accounts being designed for different uses, you can accordingly choose the one suiting your requirements.

Want to compare some of the best transactional accounts?

Want to compare some of the best saving accounts?