Quick Answer: What Is The Benefit Of Salary Account?

Which bank is best for salary account?

Top 5 Salary Accounts in India, 2020Kotak Platina Salary Account.SBI Corporate Salary Package.HDFC Bank Classic Salary Account.Citibank Suvidha Salary Account.Axis Bank Prime Salary Account..

Can I convert my salary account to saving account?

An employer will credit the salary to the employee’s bank account on a monthly basis. If the salary is not credited to the employees’ bank account continuously for more than three months, then the salary account will be treated as savings bank account.

What is difference between saving and salary account?

A Salary Account is opened by an organization with the purpose of crediting the salary to the employee. A Savings Account can be opened by anyone with Aadhar card to deposit money for the purpose of holding or saving it with the bank. … A Salary Account is created by the employer. Anyone can open a Savings Account.

Which HDFC salary account is best?

HDFC Bank offers several types of Salary Accounts suited for different sectors and needs.Premium Salary Account: For select corporates as priority service. … Regular Salary Account: Debit card hero! … Defense Salary Account: Especially made for defense personnel. … Classic Salary Account: Comes with better security features.More items…

Is interest on salary account taxable?

The interest that you receive from a savings account is taxable under the head “Income from other sources”. Further, Section 80TTA provides for a deduction upto Rs 10,000 on such interest income and therefore, interest earned beyond Rs 10,000 only is taxable.

What are the benefits of salary account in SBI?

Here are a few benefits of our Salary Package Account:Zero Balance Account.No Monthly Average Balance charges.Employee Reimbursement Account.Auto Sweep Facility.Lifetime Free Debit Card with exclusive benefits.Free unlimited transactions across any Banks’ ATMs.Free Demand Draft.Free Multi City Cheques.More items…

Is it safe to keep money in salary account?

The answer is : YES. Having more than 1 account is always advisable. … If you keep all your money in Salary account, which is having a Debit card and Internet banking facility, there is very high chance of spending more money. So to keep unnecessary expenses in check, you should have more than 1 account.

Is HDFC salary account zero balance?

As already mentioned, the HDFC Bank Regular Salary Account is a zero balance account. In other words, there is no requirement for a minimum balance. Customers holding this salary account are eligible for the free Personal Accident Cover of Rs. 1 lakh.

Which type of account is salary?

By definition, a Salary Account is a type of Savings Account, in which the employer of the account holder deposits a fixed amount of money as ‘salary’ every month. Who can open a Salary Account? A business (employer) has to tie-up with a bank to open Salary Accounts for its employees.

What is overdraft against salary?

Overdraft against Salary Banks offer overdraft for salaried individual against the salary too. You can get an overdraft limit up to 2-3 times of your salary but that may vary from bank to bank. To avail such an overdraft you need to have a salary account with the said bank.

Is salary account is a real account?

By definition, a Salary Account is a type of Savings Account, in which the employer of the account holder deposits a fixed amount of money as ‘salary’ every month. It is an expense account and is a nominal account.

Does salary account have interest?

One important difference to know, apart from the above is that a salary account may entitle you to an easier loan, as well as credit cards….Savings Account.Salary accountSavings accountInterest ratesNo Interest paid4%-6% interest is paid4 more rows•Feb 28, 2020

What happens to salary account after resignation?

Here’s what happens to your salary account after you leave your job: … These zero balance salary accounts are offered with a critical condition of salary credit by your employer or else the account is converted to a normal savings bank account if the salary is not credited for consecutive three months.

Who opens a salary account?

Salary Accounts can only be opened when an employer ties up with a bank. With this tie-up, the employer can transfer the monthly salaries in bulk in respective Salary Accounts of the employees.

Can I transfer money in my salary account?

Yes, you can deposit money in your salary account maintained with the HDFC Bank. You can use the account as a regular account for typical banking transactions. The account can also be used to withdraw the money either from the bank’s branches or ATM’s or using net banking services.

What is the minimum balance for salary account in SBI?

The Bank offers attractive interest rates provides facilities like free debit card, mobile banking and net banking, 25% discount on locker facilities (Corporate Salary Package) etc….Table of Contents.BankState Bank of IndiaCategorySBI Special Salary AccountMinimum Balance Requirements (MAB)Nil2 more rows

What is the minimum balance for salary account in HDFC?

Regular Salary AccountDescription of ChargesRegular Salary AccountMinimum Balance (Average Monthly Balance)NILCharges on non maintenance thereofNILPAP Cheque bookFree 25 cheque leaves per year (Financial year) Additional chequebook of 25 leaves will be charged @ Rs 75/- per chequebook10 more rows

Is current account and salary account same?

Primary difference between savings and current account No interest is normally paid on a current account, while you get regular and periodic interest in the case of a savings bank account. Salaried individuals should not open a current account, unless they have a business.