Benefits and Features of Salary Savings Accounts that Make Them a Better Choice

One of the most convenient ways to save money and build a corpus, for a regular person, is to open a savings account. The second most precious account, especially for salaried professionals, is the salary account, an account that gets opened as part of the deal after joining an organisation.

As the name suggests, the salary account is a type of savings account, wherein each month, a fixed amount is deposited, in the form of salary, by the employer.

Often when you join a new company, you may be asked to open a salary account with a bank that has tied up with your company. While you can ask the employer to credit the salary in your regular savings account (In some cases and if the employer allows), a salary account offers some extra benefits to you as well.

Unlike the normal savings account, the salary accounts are much easier to manage. You can easily convert it into a normal savings account once you quit the job or carry on with the account to your next company.

Here are the top three unique features of the salary account.

Top Three Features that Make a Salary Account Better than a Normal Savings Account

● Personalised Service: The first and foremost difference is that you can avail of much better service by choosing the salary account over the normal savings bank account. Since the bank has a tie-up with your company that has many accounts with the bank, a salary account can offer you more personalised customer care service and faster resolution of problems, especially if you haven’t maintained a great relationship with your bank through your savings account.

● Instant Account Opening and Easy Documentation: Since the account opening process is mostly handled by your employer, the opening process is usually smoother and requires lesser documentation vis a vis, you going to the bank on your own to open a savings account.

● Zero Balance Requirements: This has to be one of the best features of a salary account. Unlike the normal savings bank accounts, where you may need to keep a minimum monthly balance to avoid penalties and use the services like cheques, online services, etc., salary accounts have no minimum balance requirement. You can dig into your savings at the end of each month without having to worry about paying a fine.

More benefits

Along with the features mentioned above, a salary savings account may offer other benefits depending on the bank you choose.

1. Some banks offer higher interest rates on a salary account as compared to a regular savings account.

2. Some banks also provide the service of assisted tax filing with the help of your dedicated relationship manager.

3. You may enjoy higher limits on cash deposits with some banks.

4. You can choose a debit card according to your spending and saving needs.

Account Conversion

If no salary is deposited in your account for a period extending more than three months, then the bank holds the right to convert your salary account to a regular one. With this conversion, you will lose all the benefits and facilities that are part of the package.

On the other hand, you can also request the bank to convert your savings account into a salary one if your new company has a partnership with the same bank.

These are the three unique features and a few benefits associated with a salary account. Do note that some benefits may vary from one bank to another. Employers often have tie-ups with more than one bank, which allows you to choose the right bank based on services offered. If that’s the case, choose the bank that offers good service and a good interest rate on your hard-earned money.