A salary account is a type of savings account where a certain determined amount of money is supposed to get deposited every month. Most of the banks are giving the services of opening salary accounts. These salary accounts come with a larger number of benefits as the bank is assured of deposition of a fixed sum of money in it every month.
Let us now take a look at some of the most frequent asked questions (FAQ) about salary accounts.
When is my salary account converted into a general savings account?
A salary account is activated till it receives regular deposit of salary amount. Once there is a discontinuation of such salary deposits for three or more months then the salary account will get converted into a general savings accounts. In this case you will no longer avail the benefit of zero balance. At least a minimum of ten thousand has to be kept as a deposit in the account. If you fail to do so then a certain fine will be levied on you and will get further deducted from your account.
What is the best way to open a salary account?
It can be done in two ways primarily. In the first case if an organization has a bank account with any bank then all they need to do is contact the representative or the relationship manager for their account and disclose the deal to him or her. If the organization does not have an account with the bank, then in that case the Hr of the company can contact the salary account team afresh and negotiations can be opened from the scratch. Both ways you will get good support from the bank.
What will be happen if I change my job?
Your salary account will get converted into a general salary account once it stops getting deposited with salary for more than three months. Additionally if your former employer informs the bank that you are no longer employed with the organization, then yet again your account gets converted into a savings account.
What documents are required to open a salary account
In order to open a salary account the following documents happens to be integral:
- An introductory letter by the organization. It has to be duly signed by the authorized signatory.
- A Xerox copy of the Pan Card.
- Any address proof.
What are the advantages of having a salary account
The following are some of the advantages of having a salary account:
- Zero balance
- Debit card
- Welcome kit
- Savings reward
- Internet banking
- Mobile banking
- Money multiplier and many more
Can I have a joint salary account?
This is perfectly feasible given that your employer, the organization with whom you are working has no reservations against it.
What are the eligibility criteria to open a salary account?
Following are the eligibility criteria for opening a salary account
- The organization must have a minimum of 20 employees.
- It must make an annual payment of 36 lakhs
- Average salary has to be 15,000/-
Salary accounts are the trend that has been taken up by a large number of companies in the current times. The sheer operational convenience is one of the main reasons for its popularity.