When a person joins a job in a new company, his/her salary account is first opened. Every month the company puts your salary in this bank account. Now the question arises that how this salary account is different from your savings account. Are the interest rates the same in both? And what are the rules of minimum balance in this. Let us know in detail what is the difference between Salary Account and Savings Account. And what are the rules of minimum balance and interest rate in them.
What is Salary Account?
Salary account is opened on the request of companies. Every employee of the organization gets its own salary account. An employee gets a personal salary account, where his salary comes every month.
What is a Savings Account?
Savings account can be opened by any person, whether he gets salary or not. Generally, people who are not salaried open a savings account to manage their finances in day to day life. They get interest earning deposit account from this.
Purpose of opening account
The salary account is opened by a company for the purpose of crediting the salary of the employee. At the same time, the savings account can be opened by any person who has his Aadhar card and wants to deposit money for his savings with the bank.
No minimum balance is required in the salary account. Whereas, it is necessary to maintain some minimum balance in the savings account.
switch one account to another
When the salary is not credited to the salary account for some time (generally three months), the bank converts your salary account into a regular savings account, which requires maintaining a minimum balance.
On the other hand, it is entirely up to the bank to convert your savings account into a salary account. This is possible when you change your job and the company you have joined has a banking relationship with the same bank for the salary accounts of its employees.
Rate of interest
The interest rate on the deposits in both Salary and Savings accounts is same.
Who can open account?
Corporate salary account can be opened by any person whose company has a salary account with the bank. The employer opens the salary account. On the other hand, any person can open a savings account.