You have been offered one of these products at a financial institution and you have no idea which one is best for you to purchase. Review which may be your best option.

Deciding to have an account is not about thinking about whether I want it or not, because today, the environment and the dynamics in which we live require us to be participants in the financial system. And we are not exaggerating with this, because for example, if you join a company with a formal job, you often have to open a payroll account to get paid or in the same way if you are independent, when you do a business you will to ask for at least one account certification to demonstrate some security to your client.

Savings account

On the other hand, both accounts are a product offered by financial institutions to carry out different types of banking operations. A savings account, as its name indicates, it is used to save, to save money that can be accessed at any time through ATMs with a debit card or in branches of financial institutions. There are different types of savings accounts, for example, aimed at children, young people or adults; savings accounts with a Simplified Opening Procedure, which offers better rates than a basic one; AFC account, which has tax benefits on the taxable value of the withholding at source as long as it is used for the purchase or payment of installments on a home; programmed account, in which programmed savings are made with established deposit amounts and time.

FP recommends: The hidden costs of a savings account

The only drawback with savings accounts is that many people open them and forget about them, they never cancel them. Therefore, the percentage of inactivity remains very high. So, this is why the law 1777, in which it is ordered that the balances of accounts abandoned for more than three years must be transferred to the administrative funds of Icetex.

Francisco Cubillos, financial specialist, tells us that “an abandoned account is reason for insecurity for the owner, since it can be used by third parties for criminal activities" which is why it is recommended that they approach the financial institution, withdraw the balances and cancel them.

Current account

The current account differs mainly from the savings account because it uses the checks as a tool of banking operations. This account works as a deposit from which you can add and withdraw money whenever you want. However, you have no interest rate or returns on the balance remaining in your account as if you had a savings account.

The types of checking accounts do not vary so much, you can find them without a quota, which is when you can withdraw the same money that you put into the account, or with a quota, which is when the bank makes a kind of loan, it does a study to knowing what amount you can give you, which you will later have to return, this is called overdraft. We explained to him, for example, the bank gives him one million pesos, which he can use for whatever he wants and gives him 15 to 20 days to deposit that money again and he can use it as many times as he requires.

Finally, Cubillos tells us that although the big difference between accounts is mainly checks, he thinks it is possible that cease to exist because what is currently being sought is to eliminate physical transactions with electronic ones, so it ends up being the same to have one account or another.