As we start working, our salaries get credited to our accounts. But organisations often find it challenging to disburse the remuneration salary in different Bank Accounts. Hence, they urge their employees to opt for a Salary Account.
It is a type of Savings Bank Account in which the employee receives their monthly pay. The organisation usually obtains such accounts through tie-ups with specific banks. This act enables them to transfer the salaries systematically in one go. While this is an advantage from the organisation's perspective, there are benefits for employees:
- Easy Transactions
A Salary Account is not restricted to merely the disbursement of salaries. The holder gets the liberty of making various online and offline transactions with ease. For example, you pay utility bills through your Salary Account.
- Easy Conversion
At times, you might already have a Savings Account with your company's tie-up bank. In such cases, you can convert the account into a Salary Account. You only need to submit a request and your employer's statement.
- No Minimum Balance
Unlike a regular Savings Bank Account, a Salary Account does not require a minimum balance. This way, it holds benefits like a Zero-Balance Account.
- Free Cheque book & E-Statements
A Salary Account offers a free chequebook. It also provides access to your e-statements. As a result, you can monitor your transaction history easily.
- Demat Account
A Demat Account holds financial securities electronically. It is essential for Online Trading. If you partake in such trading activities, open such accounts through your Salary Account.
- Free Debit Card Facility
A Salary Account offers you a free Debit Card once you open it. This card is applicable worldwide for any transaction. After a while, you can apply for a Credit Card. The procedure, however, varies between banks.
- Easy Deposits
You can quickly deposit cash or cheques into a Salary Account. The process is simple and involves no extra formalities.
- Easy Documentation Process
The documentation process of a Salary Account is also relatively hassle-free. You need to submit the following:
- KYC documents like PAN Card, Aadhaar Card, etc.
- Recent salary slips from the employer
- Recent passport-sized photographs
In most cases, these are enough to open the account. But the bank could ask for a show of other relevant documents, which is rare. Also, once your details get verified, you get your Salary Account on the same day itself.