Nowadays, most people have a bank account. This bank account can be of any type, salary, savings, or current. Even though these three accounts are used for depositing money and transactions, there is a huge difference between them.
Employed people have to open a salary account, in which their salary is transferred every month by their employer. Along with salary transactions in a salary account, you also get many great benefits. So, if you also want to know the difference between these accounts and their benefits, then this article is for you.
Salary Account vs Saving Account
A salary account is opened by the employer to pay salaries to its employees! Whereas, a savings account is opened to save money and keep it safe in the bank. A salary account is opened by your employer, whereas anyone can open a savings account. There is no need to maintain a minimum balance in a salary account, whereas in a bank savings account, you have to maintain a minimum balance.
If salary is not received in the salary account for some time (usually 3 months), then the bank converts the salary account into a savings account. You can also convert your savings account into a salary account. The interest rate is the same in both. So, the choice depends on your needs and convenience.
Great benefits of the salary account
Documents like Aadhaar or Voter ID, PAN card, job card, photo, and appointment letter are required to open a salary account in the bank. But do you know that you get many great benefits on the salary account? Very few people know about them.
Zero balance facility
The biggest benefit of the salary account is the facility of zero balance. Most banks have a rule to maintain a minimum balance in the savings account. Charges are deducted if the balance is less than the limit. But you do not need to maintain a minimum balance in your salary account. This facility gives you the freedom to do banking without any worry.
Insurance coverage
Some banks also provide insurance coverage on opening a salary account. This coverage can be accidental death coverage or health insurance coverage. It provides you with additional security. Some banks, like HDFC and ICICI Bank, provide this type of insurance on salary accounts. This can prove to be a big safety shield for you and your family.
Easy transactions even in an emergency
All banks provide an overdraft facility on salary accounts. By using this facility, you will be able to transact even if there is zero balance in your account during an emergency. This facility helps you to meet sudden financial needs.
A loan at a better interest rate
You can easily get pre-approved personal loan, car loan, home loan from the bank where you have a salary account. Its interest rates are also usually low. Since your documents are already submitted and verified, your loan is also disbursed without any delay. This makes it even easier for you to take a loan.
Priority Service
If you have a salary account, you get service from the bank on a priority basis. You do not need to run around much for any banking related work. Check book, fixed deposit, loan transfer, ATM card related work is done easily. The bank is always one step ahead for you.
Pre-approved credit and debit card offers
Salary account holders are given pre-approved credit cards, debit cards, and check books by the bank. You get 24X7 phone banking and internet banking services. You are also provided with a relationship manager who helps you solve your banking-related problems. This makes your banking experience even easier and convenient.
Free digital banking service
Salary account holders get digital service for free. You do not have to pay any charge for doing online transactions like NEFT, RTGS. This makes it even more economical for you to transfer money.
Many offers and reward points
Salary account holders also get many offers for online shopping on their credit card or debit card. You are given reward points every month, which you can use to pay the bill for shopping or eating in a restaurant. This makes your expenses even more beneficial.
Free ATM transactions
Salary account holders get free ATM transaction service from the respective bank. However, some changes have been made in the rules of ATM transactions from May 1. According to RBI guidelines, customers are allowed a limited number of free transactions from an ATM every month.
You can do 5 free transactions from your bank’s ATM. ATMs of other banks allow 3 free transactions in metro cities and 5 free transactions in non-metro cities. Additional charges have to be paid if the number of free transactions is exceeded. Currently, banks charge ₹21 for exceeding the free transaction limit, which will now be ₹23.