This paper presents a numerical analysis of two hot water storage tank configurations-one equipped with an external heat exchanger (Tank-1) and the other with an internal heat exchanger (Tank-2). The objective is to evaluate and compare their thermal performance during charging and discharging processes. The numerical model is developed by solving a system of ordinary differential equations using the 4th-order Runge-Kutta method, implemented in the Python programming language. The results indicate that Tank-1 demonstrated a higher charging efficiency of 94.6%, achieving full charge in approximately 2 h and 20 min. In comparison, Tank-2 required 3 h and 47 min to reach full charge, with a charging efficiency of 85.9%. During discharge, both configurations exhibited similar behavior, with an efficiency of 13.63% over approximately 33 min. The analysis showed that the external heat exchanger configuration led to more effective thermal stratification, supported by the Richardson number analysis, which indicated a significant effect of buoyancy during charging. This design advantage makes Tank-1 particularly suitable for applications requiring rapid heating and minimal heat loss, such as in cold climates or intermittent demand systems. The numerical model demonstrated reliable predictive accuracy, achieving an RMSE of 6.1% for the charging process and 6.8% for the discharging process, thereby validating the model's reliability. These findings highlight the superior performance of the external heat exchanger configuration for fast and efficient energy storage, particularly for applications in cold climates.