Salary Account – Good news for common working people. If you have a savings account and have recently started receiving a regular salary, you may want to consider converting your savings account to a salary account. Salary accounts offer several benefits, such as higher transaction limits, exemption from the minimum balance requirement, and lower fees on many bank services.
In this content, we’ll explain how to convert a savings account into a salary account, what customers need to do, and the benefits. We’ll also explore the differences between the two accounts.
Steps to convert savings account to salary account
Step 1: Check your eligibility
First, you need to check if you can convert your savings account into a salary account. This requires meeting the bank’s eligibility criteria, such as a minimum salary threshold and working for a company that has a tie-up with the bank.
Step 2: Get the application form
After confirming your eligibility, you’ll need to obtain a salary account conversion application form. You can download this form from the bank’s website or obtain it from your nearest branch.
Step 3: Fill the application form
Fill out the application form with accurate and up-to-date information. Ensure all required details are entered clearly and correctly. Provide accurate information about your salary and employment.
Step 4: Submit the application form and documents
After filling out the form, submit it to the nearest bank branch along with the required documents, such as your salary slip, employee ID card, and proof of identity. Some banks also offer this facility online, where you can upload the documents. Once the bank verifies and approves the documents, your savings account will be converted to a salary account.
Difference between a savings account and a salary account
Savings accounts and salary accounts serve different purposes. Below are the key differences between these two types of accounts.
Purpose: A savings account is created to save money and earn interest. A salary account is specifically for employed individuals whose monthly salary is directly deposited into the account.
Transaction limits: Salary account transactions are typically higher than savings account transactions. This is because salary account holders typically need to withdraw more money for their needs.
Account maintenance fees: Banks often charge a fee for maintaining a minimum balance in savings accounts, while salary accounts typically don’t.
Checkbook feature: Savings accounts offer a limited number of free checkbooks, while salary accounts often offer unlimited free checkbooks. This is because salary account holders may need more checks to pay expenses and bills.
Required Documents: Opening a savings account requires proof of identity, proof of address, and other documents requested by the bank. Opening a salary account requires these documents, along with employment information and salary slips.