Branch and ATM density shows the accessibility to ATMs and the Bank’s branches. It is essential that the Bank has a widespread ATM and branch network. Many people think salary accounts are not eligible for loans; in reality, these accounts enable employees to apply for personal loans. Companies are adamant about creating salary accounts for each employee even though they have their bank accounts. It is not rational to choose between both accounts by just looking at the differences.

1. As the name suggests, a savings account is an account that you can open with a banking institution that allows you to deposit money and save up.
2. Overdraft service is the protection issued by the banks on Non-sufficient account balances.
3. I suppose there is a very small argument to be made about security where if you use a bank account for daily spending and that account is somehow compromised, the short-term damage is limited.

This way, the salary account ensures smooth and timely income to the account holders. It makes sense to me to separate off regular planned expenses (rent/mortgage, utility bills, insurance premiums) from spending money because it lets me put the basics of my life on autopilot. An added benefit is I have a failover checking account in the event something happens to one of them. I don’t keep significant amounts of money in either account and don’t give transfer access to the savings accounts that store the bulk of my money.

That is why you must understand the salary account vs savings account to know its financial impact and supporting services. A salary account is opened with the sole purpose of crediting an employee’s salary each month. It is opened by banks on request from businesses with a sizable number of employees. Salary bank accounts come with various features that benefit employees. The most significant advantage is that it requires zero minimum balance, so you can withdraw your entire savings without having to worry about a penalty fee.

Thus, you should consider all these factors before choosing an account. Thus, the account holders or the employees need not worry about the minimum balance requirement. Account holders are exempted from fines charged due to balance exhaustion.

Saving Account vs Salary Account

Similarly, the bank charges a higher rate if you make more transactions through your salary account. However, unlimited transactions are allowed for free for current account users. The salaried individuals are the customers who move between the salary and savings accounts. Regardless of the salary account and saving account, both have a utility value. However, individuals who switch jobs must be careful with their salary accounts. This is to avoid imposing a minimum-balance penalty denting their pocket.

What is Employee Background Verification?

IDFC FIRST Bank offers a competitive interest rate of 6% that is credited on a monthly as well as a quarterly basis. Moreover, you get access to an array of banking services online using IDFC FIRST Bank mobile app. To open an IDFC FIRST Bank savings account, you need to visit the official https://business-accounting.net/ portal of the bank and apply online with a hassle-free application and documentation process. Both savings account and salary accounts are offered by
banks, but they serve different purposes. In this
presentation, we will discuss the differences between
savings account and salary account.

Which one to choose between the Salary account and the Current account?

Since the HR department deals with employee-related activities directly, any error in these processes impacts employee satisfaction. Banks that offer online customer services and support have the upper hand compared to those that continue physical interaction. The bank will decide the sanctioned amount according to the employee’s net salary. On the other hand, FlexiCash is a facility offered to selected ICICI Bank Salary Account customers, with no documents required. Mononomosuumi is an Indian Edutech Platform, that brings together technology to the education sector and providing requisite support to students, writers and school administrations. It provides writing related extracurricular activities accessible through technology-driven solutions.

However, if it exceeds the over-the-counter transaction limit, it may attract a certain fee. Some banks also offer additional benefits like access to airport lounges, or discounts at partner restaurant which can also vary with the type of card you hold. By combined use of both cards wisely, you can maximise your reward benefits. The features, benefits and offers mentioned in the article are applicable as on the day of publication of this blog and is subject to change without notice. The contents herein are also subject to other product specific terms and conditions and any third party terms and conditions, as applicable. For any transaction you make or any activity in your salary or savings account, an SMS alert or notification arrives on your phone.

Automate payroll

The main feature of a salary account in India is that it provides convenient payment options, such as direct deposit of salary, automatic bill payments, and mobile and internet banking. Perhaps you have several bank accounts, and you use the different accounts to separate your money for different purposes. After you get your salary deposited, you can move some into your spending account and some into your various savings accounts for different purposes.

A company can open corporate salary accounts on behalf of the employee. Overall, direct deposit of salary is a convenient, secure, and efficient method of payment for both employees and companies in India. Opening a salary account is usually free as it is a zero-balance account. However, a current account requires lengthy paperwork and a fee to open the account. A salary account is meant only for salaried employees while a basic savings account is available to all.

Maurie Backman is a personal finance writer covering topics ranging from Social Security to credit cards to mortgages. She also has an editing background and has hosted personal finance podcasts. If you’re a salaried employee, you’re no doubt used to collecting a steady paycheck at preset intervals, whether it’s every two weeks or once a month. You can have your spouse, parent or child as a joint applicant in the salary account. You need to submit the beneficiaries’ required information for the same.

They pay a modest interest rate but are accessible for drawing emergency cash. Most banks offer several savings account variants tailored for specific customer classes. Some examples are women’s accounts, defense personnel accounts, etc. They form the basis if you wish to avail banking services through NBFCs or banks. Savings accounts are flexible, making them suitable for storing funds. Yet they are liquid enough to meet your short-term financial commitments.