Proven ways to make the most of your salary account

A salary account is an indispensable part of your personal finances as a working professional. It's not just a repository for your hard-earned income, but a platform that provides a host of financial advantages waiting to be harnessed. Along with providing immediate access to a host of banking services, a salary account lets you manage your monthly expenses and supply funds towards your investments as well as help in building your savings. Let us dive into the working of a salary account and equip you with ten proven strategies to make the most of this bank account.

What is a salary account and how does it work?

A salary account is a dedicated bank account through which employers disburse salaries to their employees. It acts as a financial bridge between your employer and you which facilitates seamless salary transactions. It is quite common for companies to have a tie-up with banks to offer a corporate salary account for streamlining the salary disbursement process.

The working of a salary account is straightforward where your employer deposits your monthly income directly into this account, thus eliminating the need for physical paychecks, which was common practice earlier. This electronic transfer not only ensures efficiency but also provides you with quick access to your funds. Most salary accounts come with a range of features designed to simplify financial transactions and enhance your overall banking experience.

Unique features of a salary account

To unlock the full potential of your salary account, you must know the key features that this account has to offer. The following features are some noteworthy attributes:

1. Zero balance requirement
 

Unlike regular savings accounts, salary accounts often come with the benefit of zero or minimal balance requirements. This means that you can manage your finances without worrying about maintaining a specific minimum balance as liability.

2. Debit card benefits
 

A salary account usually comes with a complimentary debit card which offers you convenient access to your funds anytime, anywhere. An IDFC FIRST Bank salary account can sweeten the deal with unlimited ATM transactions and travel benefits such as a free cancellation of up to ₹25,000, roadside assistance, as well as trip insurance of up to ₹5000 with its complimentary debit cards.

3. High interest rates
 

Our salary account also provides you with interest rates that are the best in the industry on your deposits with a unique feature of monthly interest credits.

4. Personal accident cover
 

With an IDFC FIRST Bank salary account, you also get a complimentary personal accident cover of 35 lakhs to secure yourself from unforeseen events.

5. Online banking services
 

With the advent of digital banking, salary accounts typically come with robust online banking services. This enables you to manage your finances conveniently from the comfort of your home or office.

6. Free common banking services
 

This feature is exclusive to IDFC FIRST Bank where you enjoy over 28 banking services completely free of charges. These services include free online money transfers, ATM withdrawals and deposits, free chequebook re-issuance, debit card issuance, and a lot more.

Seven proven ways to maximise advantages from a salary account

1. Automate savings
 

Set up automatic transfers to your savings account to ensure a portion of your salary goes into savings before you have a chance to spend it.

2. Utilise debit card benefits
 

Take advantage of the discounts and cashback offers associated with your salary account's debit card for everyday expenses.

3. Monitor account activity
 

Regularly review your account statements to track your spending patterns, identify areas for potential savings, and stay informed about your financial health.

4. Maximise online banking tools
 

Leverage the power of online banking tools to set budgetary limits, schedule bill payments, and monitor your financial goals.

5. Link your salary account to your investments
 

Some salary accounts offer the option of linking your investment accounts. Explore this feature to seamlessly divert a portion of your salary towards your investments.

6. Avail loan benefits
 

Check if your salary account provides preferential terms for personal loans or home loans. This could translate into lower interest rates and more favourable repayment conditions.

7. Take advantage of your salary account’s insurance coverage
 

Some salary accounts include complimentary insurance coverage like the personal accident cover on an IDFC FIRST Bank salary account. Familiarise yourself with the terms on offer to ascertain the extent of the insurance coverage and make informed decisions about any additional insurance that you may need.

Factors to consider when opening a salary account
 

Here’s what you need to keep in mind when you plan to open salary account:

• Bank reputation: Choose a bank with a solid reputation for reliability and customer service.
• Fees and charges: Scrutinise the fee structure associated with the salary account, including charges for additional services and penalties for non-compliance.
• Digital services: Assess the bank's digital offerings, ensuring they align with your preferences for online banking.
• Network of ATMs: Consider the availability and accessibility of ATMs affiliated with the bank to avoid unnecessary withdrawal charges.
• Interest rates: While salary accounts typically don't offer substantial interest, IDFC FIRST Bank offers an attractive salary account interest rate with a feature of monthly interest credits to enhance your savings. Being aware of this interest rate is essential to understand how much you’ll be able to save with the balance kept in the account.

Conclusion

A salary account is more than a mere receptacle for your monthly earnings. It's a versatile financial tool that, when used judiciously, can significantly enhance your financial well-being. So, open a salary account online with IDFC FIRST Bank and seize the opportunity to pave the way for a secure and prosperous financial future.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.