People often think that a salary account is simply a means of depositing their salary. However, this notion is completely wrong. In fact, salary accounts hold many hidden benefits. In 2025, banks are offering many benefits on salary accounts, such as zero balance, high interest, and loan discounts, but most people fail to take advantage of them. If you are employed, a salary account makes your banking easier and cheaper. Let’s explore 10 key benefits of a salary account that strengthen your financial position.
Zero Balance and No Maintenance Fees
Salary accounts are most popular these days because they offer a zero balance. This means that even if the account balance is zero, there are no maintenance charges or penalties. In contrast, a regular savings account often requires a minimum balance of ₹3,000 to ₹10,000, or a penalty may apply. Your money is always free in a salary account.
The Benefit of a Higher Interest Rate
Salary accounts offer attractive interest rates. They offer higher interest rates, ranging from 3% to 7% compared to regular savings accounts. For example, IDFC First Bank offers up to 7% interest on salary accounts. Keep in mind that interest is earned only if your monthly salary is deposited into the account. This not only keeps your money safe but also provides higher returns.
Free ATM Withdrawals
An important benefit of a salary account is free ATM withdrawals. You can make unlimited free transactions from your bank’s ATMs, while other banks’ ATMs typically limit free transactions to 5-10. This feature is particularly beneficial for frequent cash withdrawals and avoids additional charges.
Emergency Assistance with the Overdraft Facility
The overdraft facility in your salary account provides you with immediate access to funds in case of an emergency. Once deposited into your salary account, you can avail an overdraft equivalent to approximately 2 to 3 months’ salary, at an interest rate of approximately 9% to 11%. This facility is available immediately without any additional documentation and works like a small loan.
Loan Benefits at Low Interest
Customers with salary accounts benefit from loans at low interest rates. This includes a discount of 0.25% to 0.5% on home loans and personal loans, as well as waived processing fees. Banks prioritize salary account holders in loan processing, making loan access quick and easy.
Free Insurance Coverage Security
With a salary account, you also benefit from free insurance coverage. You can get personal accident insurance ranging from ₹2 lakh to ₹10 lakh free of charge. Some banks also offer additional life insurance coverage. This feature provides additional protection to account holders.
Exclusive Discounts and Offers
Salary account holders also benefit from exclusive discounts. Discounts of 10% to 20% are available on shopping, travel, and dining. Cashback offers are also available on e-commerce sites like Amazon and Flipkart. Premium benefits like airport lounge access can also be availed, enhancing their experience.
Free Checkbook and Premium Debit Card
You also get a free checkbook and debit card with your salary account. Account holders can avail unlimited free checkbooks. They also get a free Premium Platinum Debit Card, which earns reward points on purchases and transactions.
Great Benefits of Digital Banking
Digital banking offers many benefits for salary accounts. You can make free fund transfers and bill payments through iMobile or the YONO app. You also receive free SMS alerts for every transaction, allowing you to maintain complete control over your finances.
Free Demand Draft and NEFT/RTGS Facility
Salary accounts also offer free demand draft (DD) and NEFT/RTGS facilities. This makes sending money easy and cost-effective. There are no charges for DD, while NEFT and RTGS transactions are also free, allowing you to transact easily without any additional cost.