Salary accounts are savings accounts specifically available to customers who receive a salary. It's a practical way to pay a salary per month to the employee through the employer. A salary account makes it simple for employers and provides distinct benefits and services to employees. Additionally, employees will enjoy seamless access to the latest net banking and mobile banking services.
We've thoroughly gone over its different aspects and discussed the most suitable bank to establish a salary account to provide you with more information regarding the paid account.
Did you know?
If a salary is paid tax-free by an employer, it has to be included by the employee in their taxable income.
What is a Salary Account?
An organisation (employer) has to sign a contract with a bank to establish an account for salary payments to employees. The salary is transferred into the respective accounts of employees each month in a lump sum amount paid by employers. If employees do not have an account with the bank with which they work, the employer will assist employees in opening an account at the relevant bank.
So, anyone can open a payroll account. One of the conditions for this is the connection between the company and the bank.
What are the Benefits of a Salary Account?
Let's look at the advantages of having a paid account for your salary.
- Salary accounts can be more profitable to banks because they receive a set amount of money every month. That makes them a permanent source of savings in the current account balance (CASA).
- In contrast to the savings account, the salary account has higher advantages.
- The benefits of these accounts could differ between banks.
- The holder of a salary account will also enjoy the advantages of seamless online banking, phone banking and online transfer services.
- Individuals can enjoy the benefits of a zero minimum balance on the account, free statement/passbook/cheque book/ and debit card.
- Through a salary account, people can take advantage of having a Demat account, services including loans, credit card convenience, etc.
- You can also pay utility bills through an account for salary.
Also Read: Which are the Largest Commercial Banks in India?
How to Select the Best Bank for a Salary Account?
- ATM: withdrawal costs and free access to ATMs of other banks across India. It is also possible to look into the branch size and ATM of the specific.
- Interest rate: You must be looking for an interest rate offered by the bank on the account for salary. Some banks offer very high rates of interest on the salary accounts.
- Security: At present, the possibility of fraud and hacking is very regular. It is important to look at banks from security and the latest technology.
- Customer care: We ask you to review your bank's customer support.
- Rewards: A few banks offer additional reward points and accidental insurance benefits that evaluate the salary account.
- Credit and debit cards: If the debit card or sometimes credit card comes with a salary account, that is extremely convenient and beneficial. This means you can take cash out of ATMs and use the card in place of cash at different establishments and stores when you need to pay. If the bank also offers special deals or discounts for the card, there's nothing else like it!
Best Bank to Open Salary Accounts
After knowing about what is a salary account, now is the time to cherish the top salary accounts from which you can select.
Kotak Salary Account Platina
In Kotak Mahindra Bank, creating a salary account is possible. If you create this salary account, even if you have no balance, still it depends on the monthly pay credit. Earning the highest interest rate of up to 4% on the payment balances is possible. Also, you can easily transfer cash from this salary account at no cost with the help of NEF, IMPS or RTGS. Make a demand draft of an unlimited amount and have it available at any bank branch. In conjunction with your salary account at Kotak Platina, opening up to three savings accounts per family is possible with no expenses of maintenance.
With the bank's free feature, you can manage your account for salary from your home/office. You can also get 25% off leasing a locker to store your belongings. When you use your debit card they provide, initiating transactions at any VISA ATMs all over India will be possible. Once you pay with the debit card for purchasing fuel, you'll be eligible for a 2.5% fuel surcharge exemption no matter which petrol station you buy fuel in India.
Accidental personal death insurance that can be as high as ₹35 lakhs is available. To avail of the personal accidental death coverage, the beneficiary must provide a few necessary docs to the closest office of Kotak Bank within 30 days from the death of the person who had the salary account.
Classic Salary Account from HDFC Bank
Before we start, you must have a job at any organisation or corporate office with a salary-based account with HDFC Bank to be able to apply for this account. It's a pay-per-hour account and gives the account owner a wide range of benefits.
You can receive a no-cost debit card with points that can be withdrawn daily from ATMs in the domestic market with a limit of ₹1 lakh. The daily shopping limit for domestic purchases is ₹3.5 lakhs. Also, using the net banking option in this bank can alter the HDFC debit card limits to meet your requirements.
If we talk about the Times Points Debit Cards, it's a loyal digital program which provides discounts on dining, online shopping and other grocery purchases. You can enjoy enticing benefits and privileges when purchasing your debit card with Times Points. You can begin with a joining reward of 500 Times Points on the first purchase made using this at the point of online sale. Just like HDFC, many other banks provide awesome loan schemes if you lack investment in starting your business, and you can learn how to opt for a loan.
Corporate Salary Account from Sbi
You can get a salary-based account with India's biggest public sector bank, the State Bank of India (SBI). CSP, the corporate salary plan of the salary accounts, gives you numerous advantages. Business institutions' employees from hotels, hospitals and transportation companies etc., can avail a lot of benefits. The benefits you get are based on your earnings.
You can open a salary account for free at SBI and make unlimited transactions at ATMs of any bank. It also offers bundled advantages when used with the SBI Credit Card. You may get a personal accident Insurance of ₹20 lakhs as a reward. Furthermore, you can protect an amount of ₹30 lakhs under air accident insurance. SBI also provides education loans, home loans, personal loans, car loans, etc., at affordable rates.
Axis Bank Prime Salary Account
You can get a larger amount of transactions, credit cards, complimentary Visa Rewards, savings at participating eateries, personal injury insurance, cashback on cinema tickets, etc., by using an Axis Bank Prime Salary Account. Visit your local Axis Bank branch or the official website to open the Axis Bank Prime salary account. Review the features of the account.
If you sign up for an account for salary with Axis Bank, you will get a credit card or debit card, which gives you a stunning 15% discount at participating restaurants to enjoy your meal. The Axis Bank Rupay Platinum Debit Card permits you to withdraw up to ₹40,000 daily from the account and spend up to ₹2 lakhs per month.
Also Read: Best Ways to Save Money in India 2023
Salary Account from Citibank Suvidha
Create an account with Citibank Suvidha Salary that is a customised account to the financial needs of today's professionals. When you open a salary account, you can get a discount on products of Citibank like personal loans, credit cards, car loans and home loans.
It is also possible to get a dependable debit card for transactions and payments and have access 24 hours a day to convenient online banking platforms that make it easy to manage. This is a one-stop solution for all your banking needs.
With your no-balance Citibank payroll account, you'll be able to access an account with a pay-at-par cheque book and a debit/ATM credit card with the everyday limit of ₹1,00,000. When you use this bank's debit card, it'll provide you with various benefits.
The card can be accepted at ATMs and merchant outlets in all countries to make easy cash and payment withdrawals. Every transaction and purchase can also gain you Reward Points, and these reward points come in handy to earn cashback or other benefits.
Conclusion
Although the salary account is a form of savings, a few advantages and features make it profitable compared to a normal savings account. So, be sure to examine the benefits and features of both accounts and then close or convert the account accordingly.
Follow Khatabook for the latest updates, news blogs, and articles related to micro, small and medium businesses (MSMEs), business tips, income tax, GST, salary, and accounting.
