5 Benefits of Opening a Salary Account

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5 Benefits of Opening a Salary Account

A Salary Account is a Savings Account type where the account holder’s employer deposits a fixed amount of money as a salary every month.

Being employed is a blessing. You become financially independent and find growth opportunities. Loving your work and showing dedication are the essential criteria for success. All employees receive the income at the end of the month due to their hard work and contributions.

A Salary Account is a Savings Account type where the account holder’s employer deposits a fixed amount of money as a salary every month. They make the transfer and receipt process easier. Most companies have agreements with specific banks to open this account for their employees. You earn interest on the balance, which gets calculated daily and deposited every quarter.

Benefits

Salary Accounts provide greater benefits since they receive money regularly. However, they may differ depending on the bank. Common advantages include no minimum balance, free chequebook, Debit Cards, Net Banking, online fund transfer, Phone Banking, Loan conveniences, utility bill payments, etc. Let us discuss them in detail:

Zero Minimum Balance

The first benefit is the zero minimum balance policy. Account holders need not worry about exceeding a certain balance or incurring a penalty. You also have higher flexibility in managing your money. Whether you can use up all your funds for a purpose without second thoughts.

Online Fund Transfer

With an online account open, you can manage and track your finances at your fingertips without visiting the branch. It eliminates the requirement for cash withdrawals or cheque deposits when transferring funds. Some banks also provide Phone Banking services for efficiency.

Free Cheque Book

Employees also get an ATM card, which they can use to withdraw cash from ATMs and make online or offline Debit Card payments. Account holders get personalised chequebooks to use for cheque payments.

Loan Access

Opening a Salary Account in the same bank where you have applied for Loans makes the documentation process easier and faster. The interest rates for existing account holders are generally more competitive than the rest.

Investment Services

You can easily invest in Mutual Funds, Insurance, Government Bonds, and other financial products. Employers should choose a bank carefully to ensure their employees receive the best benefits.

Documents Required

You should submit a duly filled application form, passport-sized photos, identification, and address proofs like Aadhaar, passport, driving license, etc., and HR employment confirmation or appointment letter with the previous three months’ salary slips to the bank when opening an account online.

Final Words

Salary Accounts are special Savings Accounts available to employees. It is one of the most convenient methods for the employer to pay the employee a monthly salary. Having learnt their meaning simplifies things for companies and users.