Salary accounts facilitate hassle-free monthly salary payments from the employer to the employee, offering both convenience to the employer and valuable benefits to the account holder. Essentially, a Salary Account is a variant of a Savings Account, where the employer regularly deposits the employee’s salary.
What is a Salary Account?
A salary account is where your employer deposits your salary. Typically, companies arrange these accounts in partnership with banks, specifying a date for the bank to receive funds from the company and disburse salaries to employees. Nevertheless, some banks may permit individuals to open salary accounts with proof of employment or employer approval.
Benefits & Features of Salary Account
Salary Account benefits can vary between banks and even within the same bank. Common benefits include:
- Zero minimum balance requirement, free chequebook/passbook/e-statements.
- Additional perks often include Debit Cards, NetBanking, Phone Banking, and online fund transfers.
- Some banks may offer Demat Account services, loan facilities, Credit Card offers, and utility bill payment options to Salary Account holders.
Best Salary Account Options Available in 2023
With a plethora of options, it can be challenging to choose the best bank for salary account. To make the choice simpler given below is a list of the best salary account options available at present. Review the features and benefits of each account and make your choice.
Salary Account | Features and Benefits |
Kotak Platina Salary Account | Offered at an interest rate of 4.00%Use Platinum debit card at Visa ATMs across the country for unlimited free transitions.No charges for funds transfers through NEFT/RTGS/IMPSFree Personal Accident cover up to Rs. 25 lacsAuto Sweep-in/Sweep-out facility available25% Discount on locker rent |
RBL Bank Executive Salary Account | Earn interest of up to 7.00% on your balance.Enjoy unlimited free cash withdrawals each month at all RBL ATMs and up to 10 free cash withdrawals at other domestic bank ATMs.Choose from various debit card options such as Visa Classic, Platinum Debit Card, Master Titanium, or Platinum Master Debit Card.Receive email and SMS alerts for every transaction.Access safe deposit locker facilities.Receive a complimentary chequebook. |
IDFC First Corporate Salary Account | Earn up to 7.00% interest.Enjoy free NEFT/IMPS/RTGS transfers.No annual debit card fees or r-issuance charges.Choose between a Visa Signature Debit Card and a Visa Platinum Debit Card.Get unlimited free ATM transactions at domestic banks, meeting minimum credit transaction criteria.Receive complimentary personal accident coverage up to Rs. 35 lakh and air accident coverage up to Rs. 1 crore. |
HDFC Bank Regular Salary Account | Earn up to 3.50% interest.Enjoy monthly free ATM transactions.HDFC Bank Debit Card offers 5 free transactions across all cities.Other bank ATMs: 3 free transactions in the top 6 cities, 5 free in others.Daily ATM withdrawal limit: Up to Rs. 25,000.Personal Accident Cover: Up to Rs. 10 lakh.Transfer funds easily via NEFT or RTGS.Personal loans are available based on eligibility. |
Axis Bank Prime Salary Account | Earn up to 3.50% interest.Designed for Rs. 25,000 to Rs. 1 lakh monthly salary bracket.Daily withdrawal limits: Rs. 40,000 at ATMs, Rs. 2 lakh for shopping.5 free transactions at Axis Bank ATMs, 5/3 free at non-Axis Bank ATMs (non-metro/metro locations).Visa Rewards Plus debit card: Rs. 5 lakh daily shopping limit.Personal Accident Cover: Rs. 5 lakh.Explore Axis Priority Salary Account for higher salaries with cashback on online debit card spending. |
SBI Corporate Salary Package | Earn up to 2.70% interest.Four variants based on monthly salary:Platinum: Above Rs. 1 lakhDiamond: Above Rs. 50,000 – up to Rs. 1 lakhGold: Above Rs. 25,000 – up to Rs. 50,000Silver: Between Rs. 10,000 – Rs. 25,000Unlimited free ATM transactions at any bank.Fee-free fund transfers via NEFT or RTGS.Access to credit cards.Complimentary Personal Accident Cover up to Rs. 20 lakh.Utilise the Auto Sweep-in feature to earn higher interest by linking to SBI e-MODS. |
ICICI Bank Salary Account | Earn interest up to 3.50%.International debit card with no annual fee.Choose from four account variants: Silver, Gold, Titanium, and Defence.Enjoy the convenience of a free personalised chequebook and phone banking services. |
Types of Salary Account Available in 2023
The different types of salary accounts are:
- Regular Salary Accounts
- Corporate Salary Accounts
- Central and State Government Salary Package
- Start-up Salary Package
- Defence Salary Package
How to Open a Salary Account Online in India?
Generally, employers facilitate the opening of a salary account upon starting your career with them. However, you are allowed to open an account individually online by submitting the required documents. Follow the instructions given below to open salary account online.
- Visit the website of the preferred bank
- Choose the preferred salary account among the various options provided.
- Proceed by choosing the ‘Apply Now’ or Apply Online’ option
- Fill in the application form with personal, employment, as well as income details.
- Upload the required documents.
- A verification code will be sent to your registered mobile number.
- Entering the OTP will complete the verification process.
- The bank will open the account on approval of the application. Thereafter the bank will send the account details including the account number and the net banking credentials via email.
- Some banks provide the ‘Request call back’ facility wherein a representative of the bank will contact you and guide you through the account opening process.
- Video KYC updation facility is provided by some banks
- Some banks allow you to set up your account online.
You can contact the customer care helpline of the preferred bank to get a clear picture of the account opening process of the particular bank.
How to Open a Salary Account Offline in India?
If you are not comfortable with account opening online, the banks also provide for the account opening offline. For this, you will have to go through the procedure given below:
- Approach the branch of your choice
- Collect the application form.
- Fill in the details accurately.
- Submit the application along with copies of the documents specified
- Generally, no initial deposit is insisted on for salary accounts. If required, you will have to remit the initial amount.
- The bank’s official will verify the documents and the details provided in the application.
- Post verification, the account will be opened.
- You will be provided with the account number and the net banking credentials.
Documents Required to Open Salary Account in India
The following documents have to be submitted along with the application for opening a salary account.
- Address Proof (any of the following)
- Aadhar Card
- Passport
- Driving Licence
- Voter’s ID Card
- Photo ID Proof (any of the following)
- PAN Card
- Driving Licence
- Passport
- Aadhar Card
- Voter ID Card
- ID Card issued by the employer
- Appointment letter issued by the employer
- 2 Passport-size photographs
Difference Between Salary Account & Savings Account
Understanding Salary Account Vs Savings Account with regard to the differences and benefits is crucial while opening a salary account or converting a savings account to a salary account.
Salary Accounts | Savings Accounts |
Salary Accounts are opened by organisations for salary disbursement | Savings Accounts can be opened by individuals with Aadhar cards for general savings |
No minimum balance requirement | Requires maintaining a minimum balance to avoid penalties |
Salary Accounts will be converted to regular savings account when no salary credit comes in continuously for a period of 3 months and minimum balance stipulation has to be adhered to | When changing jobs if the new employer has a banking relationship with the same bank, a savings account can be converted into a salary account |
Same interest rate | Same interest rate |
Salary Account FAQ’s:-
No, The advantage of a salary account is the zero-balance facility.
When no salary credits are coming forth into the account for a continuous period of 3 months, the salary account will be converted to a regular savings account.
Yes. Once the salary account is converted to a savings account you will have to maintain a minimum balance.
If your employer has a relationship with the same bank, your savings account can be converted to a salary account.
If you have a salary account you will be provided higher limits based on the salary. Preferential interest rates will be provided for loans including personal loans, vehicle loans, and home loans.