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⍰ ASK What is the difference between an EMI account and a traditional savings account?

An EMI, or Electronic Money Institution, account and a traditional savings account are different in several ways:

  1. Purpose: EMI accounts are designed to store, send, and receive electronic money, while traditional savings accounts are designed to store and earn interest on physical currency.
  2. Regulation: EMI accounts are typically subject to less stringent regulations than traditional savings accounts, which can result in a lack of protection for account holders in the event of fraud or mismanagement by the EMI.
  3. Services: EMI accounts typically offer limited financial services compared to traditional savings accounts, such as the ability to issue checks or provide loans.
  4. Accessibility: EMI accounts may have limited options for accessing cash, such as limited ATM networks or limited cash withdrawal options, while traditional savings accounts usually provide more options for accessing funds.
  5. Fees: EMI accounts may charge lower or higher fees compared to traditional savings accounts, depending on the specific provider and jurisdiction.
  6. Interest: EMI accounts may not offer interest on deposited funds, while traditional savings accounts typically offer a low rate of interest.
 

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