When an electric current flows through a wire, the wire gets heated. It is the heating effect of current or When current flows through a metal wire it gets heated up, this is called heating effect of current. E.g. a glowing electric bulb becomes warm. This effect has many applications like Electric Heater, Light Bulb etc.
When an electric current flows through a wire, it produces magnetic effect around it. A current carrying coil of an insulated wire wrapped around a piece of iron is called an electromagnet. Magnetic Effect of electric current has many applications like Electric Bell, Motor, Fan etc