What is a salary account

A Salary Account, as the name suggests is meant for salaried individuals and can be very useful. Read on to learn more about some key highlights and benefits of this account.

There is a wide range of bank account types available in India. Some prominent examples of different types of bank accounts are Savings Accounts, Recurring Deposit Accounts, Fixed Deposit Accounts, Current Accounts, NRI Accounts and more. A Salary Account is one of them that you need to be aware of especially if you are a salaried individual. The key highlights and benefits are as below

What is a salary account?
 

A salary account can be defined as the type of bank account which is opened based on a partnership between a particular bank and organisation. Your salary is credited to a salary account on a set date of a regular pay cycle. A salary account ensures convenient and timely access to your earnings.

Who can open a salary account?
  

The company you are working for has a partnership with a bank for opening salary accounts for all of its employees. On a particular day of every month, the sum that’s meant to be credited as salaries is transferred in a lump sum into the respective salary accounts. In case you don’t have an account in the bank your company has a partnership with, then, the company will open a new salary account for you.

 For opening an account, you need to submit certain documents with your signature. This procedure can be completed online.

Benefits of a Salary Account
 

Listed below are some of the benefits of a Salary Account:

• Access net banking with a salary  account

Salary account holders can also transfer or receive funds online from anywhere in the world instantly. Moreover, thanks to smartphone banking apps, you can manage transactions regardless of your location.

• Manage your investments through your salary account

You can also link your salary account to a Demat account for seamless stock trading and investment. Allocate funds to various schemes like bonds, mutual funds, and insurance seamlessly. 

• No minimum balance required

You can withdraw all of the funds in the salary account and still incur no penalty or fee as they have a zero-balance feature.   

Get additional benefits

With an IDFC FIRST Bank corporate salary account, you can get up to ₹35 lakhs of free personal accident insurance coverage*. Maximise earnings with an IDFC FIRST Bank salary account, offering up to 7% interest with monthly credits.

*- Terms & Conditions apply

Difference between Salary Account and Savings account
 

A salary account is also type of savings account, however, there are some important differences between two:

What are the features of a salary account?
 

Some useful features of a salary account include:

Zero minimum balance
 

A salary account does not impose any minimum balance requirement, ensuring that account holders are not obligated to maintain a specific amount in their account. This saves you from penalty fees, and you can spend, save, or invest your money without restrictions, ensuring you get the most out of your hard-earned salary.  

Online fund transfers and phone banking
 

With a salary account, you can transfer funds online easily. The feature of net banking eradicates the need for cash withdrawals and cheque deposits, which are known for taking considerable time.

Moreover, banking apps enable you to manage transactions efficiently, regardless of your location. With just a few taps on your smartphone, you can access your account, check balances, transfer funds, and perform various banking tasks, ensuring that your financial management is not bound by geography and fits seamlessly into your busy lifestyle.

Debit card and personalised cheque book
 

A salary account also comes with a debit card and a personalised cheque book. The debit card allows you to withdraw cash or make payments at stores effortlessly. A personalised cheque book not only adds a layer of professionalism but also simplifies transactions like paying rent or handling other large expenses. 

Easy access to loans
 

If you have a salary account, getting approved for loans usually becomes easier. Banks can quickly verify your income stream, which speeds up the loan approval process. Furthermore, you may benefit from exclusive offers or lower interest rates specifically tailored for salary account holders. 

Investment services
 

You can manage investments through a salary account and allocate funds to mutual funds, bonds, and insurance. You can even link your salary account to a Demat account for easy stock trading. This integrated approach simplifies the allocation of funds and makes financial management more efficient.

Choosing the best bank for salary account
 

Choosing the best bank to open a salary account depends on various factors like zero balance requirements, online services, and investment options. An IDFC First Bank corporate salary account offers such valuable features with additional benefits. 

You can open a salary account online, regardless of your location, and easily complete the verification process. The account lets you invest in various options, including fixed deposits, recurring deposits, mutual funds, sovereign gold bonds, and investment-linked insurance. Moreover, enjoy competitive  interest rates, debit cards with insurance, and digital banking services, among other perks. Open a salary account with IDFC FIRST Bank and experience these benefits today.

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.