Salary Accounts are an account that allows the employer to credit the employee's salary. Usually, every company employee gets their Salary Account, making it a convenient way for the employer to pay their salary every month. Such an account is also packed with various features and benefits.
To help you better understand this account, here are the answers to a few of the frequently asked questions about a Salary Account.
Who can open a Salary Account?
The employer, business, or organisation needs to tie up with a bank to open a Salary Account for its employees. Every month, the employees' salaries are transferred to their respective Bank Accounts as a lump sum amount by the employers.
Do you need to maintain a minimum balance in a Salary Account?
Typically, Salary Accounts are Zero-Balance Accounts. Hence, account holders do not usually maintain a minimum monthly balance. This also keeps you from paying any penalty for not maintaining a balance above a specific limit. This benefit offers salaried employees more flexibility when managing the money in their Salary Accounts.
Can you use your Salary Account for regular transactions?
Yes. You can utilise your Salary Account to perform regular transactions. Usually, account holders of such accounts can easily transfer funds online from anywhere and anytime using Online Banking facilities. Employees also get access to a Debit Card, which they can use to make offline and online payments.
Can you access your Salary Account?
You can access a Salary Account online using Online Banking.
Does a Salary Account process access to a Debit Card?
Once the Salary Account is opened, the employee usually receives a banking kit. This kit usually has a Debit Card. You can use the ATM or Debit Card to withdraw cash at ATMs. You can also use it to pay offline at physical stores or make payments online. The account also usually offers access to a chequebook.
Is a Salary Account different from a Savings Account?
If you are thinking about a Salary Account vs a Savings Account, a Salary Account helps employees receive their salaries. On the other hand, a Savings Account enables you to save money and manage your daily expenses. Besides, a Salary Account is opened by a company or organisation for its employees.
Conversely, anyone can open a Savings Account. Once you open the account, you can use it to save money.
Does your Salary Account get closed automatically?
If your salary stops being credited to the Salary Account for three consecutive months, the account is converted into a Savings Account. If you want to close the account, you need to contact the bank and initiate the process.
Conclusion
A Salary Account is a specialised account streamlining salary disbursement from employers to employees. It comes with unique features and offers various advantages to employees.
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