However, in the case of a salary account, maintaining a minimum balance is not required. You can withdraw the total salary that you receive without bearing any penalty. Such bank accounts make it easier to track finances and use money for daily needs. Banks have tie-ups with employers, who often have a bank account in the same bank.
- Employers have tie-ups with specific banks where their employee salary accounts are opened.
- The savings account stores your savings and helps you earn interest on it.
- Your continued usage of the facilities from time to time would also constitute acceptance of the Terms of Use including any updation or modification thereof and you would be bound by this Agreement until this Agreement is terminated as per provisions defined herein.
- As the name suggests, your salary will be automatically credited to your Salary Account every month.
- Choosing one among the savings account and salary account depends upon the needs and requirements of an individual.
Salary Account vs Savings Account: Understanding the Differences
Salary account vs savings account – Find out which one suits your needs. However, if it exceeds the over-the-counter transaction limit, it may attract a certain fee. Here, you can get loans from Rs.5,000 to Rs.10 Lakh with a CIBIL or Experian score of just 650.
Minimum Balance Requirements
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Interest income earning
If you are an individual, who is not on a monthly salary, a savings account would be a better option for you. To choose the bank that will be best for you, you can check out the top banks in India, the minimum balance requirements, and the interest rates they offer. The next step when discussing a salary account vs a savings account is knowing about a savings account. This type of account can be considered a stepping stone to banking services. It is one of the most reliable deposit accounts that banks and NBFCs offer. They pay a modest interest rate but are accessible for drawing emergency cash.
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- An employer can open a salary account for all their employees if they have a tie-up with the bank.
- In summary, when comparing salary accounts vs savings accounts, it becomes evident that while both serve as financial tools, they have distinct features and purposes.
- Whenever a new employee joins, the employer opens a salary account in the bank on their behalf.
- Ensure that you thoroughly compare the interest rate and other features before choosing a bank for your account.
- But any individual of any gender, age, and income status can open a savings account.
- Colin also served as Vice President and Regional Sales Manager at HSBC, leading retail liability acquisitions and driving business development for investment and insurance products.
- Both types of accounts provide debit cards and chequebooks for convenient transactions.
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Many Indians open their account in the bank to deposit their money and earn interest on it. But there is confusion among the accounts because the bank offers different types of accounts like salary or savings accounts. So, the salary account is basically opened by the employer in the bank in which the salary gets credited whereas a savings account can be opened by any individual in India having valid documents. You can spot some more differences between the Savings Account vs Salary Account in this article to understand the difference better. The purpose and the minimum balance required for both accounts differ from each other.