Salary Account Benefits: Today we are going to tell you about the benefits of salary account. Actually, the account in which employees’ salaries are received is called salary account. And it has many benefits. Let us know about it in detail….
Salary Account Benefits: There is also a salary account in many types of bank accounts. Yes, the account in which employees’ salaries are received is called salary account. This account has many benefits like free ATM transactions, unlimited online transactions and minimum balance waiver.
Salary account or salary account is a type of special savings account, which is given to salaried customers. This is a convenient way for the employer or company to pay monthly salary to the employee. Having a salary account makes it easier for employers to transfer money and the employee also gets many better services.
Who can open a salary account? (Who can Open a Salary Account?)
An organization (employer) has to tie-up with a bank to open a salary account for its employees. The employer transfers the salary to the bank accounts of the employees every month in the form of a lump sum amount. If the employees do not have an existing account with the bank with which their employer has a tie-up, the employer helps those employees in the process of opening an account with that bank. In this way, every person can open a salary account, but he must be an employee of an organization.
How is salary account different from savings account?
1. Any person can open a savings account, whereas a salary account can be opened by a person who is an employee of an organization. A person’s salary account is opened only on the recommendation of the organization.
2. There is a need to maintain a minimum amount in a savings account, whereas there is no need to maintain a minimum balance in a salary account.
3. Fees are generally charged for other facilities available with a savings account, whereas salary accounts generally do not charge additional fees for the facilities.
4. The main objective of opening a savings account is to increase savings, whereas in a salary account, the employee’s salary comes every month.
Benefits of Salary Account
>> There is no rule on maintaining minimum balance in salary account. Nor is there any penalty imposed on you under this.
>> If there is no income in your salary account for more than three months, then it gets converted from salary account to general account. In such a situation, it becomes mandatory to maintain minimum balance as per the savings accounts of your bank.
>> With salary account you get personalized cheque-book.
>> Overdraft facility is available on salary accounts with a tenure of 2 years or more. The limit of overdraft amount is equal to two months’ basic salary. Under the overdraft facility, even if there is no balance in your bank account, you can withdraw money up to a fixed limit.
>> Many private and public sector banks provide the facility of free ATM transactions on salary accounts. >> Under this facility, you will not have to worry about how many times a month you have to do ATM transactions.
>> Special offers related to personal loans on salary account are also available. Many banks provide pre-approved loans against salary accounts.
>> Salary account holders get personal accident insurance of up to Rs 20 lakh in case of death. This facility is available on salary accounts in almost every bank.
