The first thing you need to start saving your money is to having a bank account. Banks are offer different variety of accounts where you can save your money by deposit, earn interest money and build a corpus. But from all the varieties of account, the most common accounts are the Regular Savings Account and the Salary Account.
There are lots of people get confused between the savings accounts and salary accounts. If you don’t know the difference between a Salary Account & Savings Account, then go through this article and know in details.
What is a Savings Account?
Savings Account are the most common regular account offered to the public by all banks. There are different types of Savings Account one can open such as basic savings account, online savings account, zero balance account and premium accounts. Depending upon the Savings Account type account holder needs to maintain an minimum balance. Different banks have offered different benefits to there Savings accounts accordingly.
What is a Salary Account?
Salary Account are mainly opened by an organization to credit the salary of its employees. At the request of the companies and organizations, banks open these Salary Accounts in the name of their employees. Some of the banks in India offer different salary accounts based on the salary slab of the account holder.
One of the most important features of the salary account is that it is a zero balance account. Account holder doesn’t have to maintain the minimum balance.
Difference Between Salary Account and Savings Account
| Topic | Salary Account | Savings Account |
| Purpose | A salary account is opened by a company or organization to credit the salary of the employees on a monthly basis | Any individual can open a savings account with an Aadhaar card to deposit and save money in the long term |
| Minimum Balance Requirement | As it is a zero balance account, no minimum balance is required to maintain the account | It is mandatory to maintain a certain amount of minimum balance in the account |
| Interest Rate | Most of the salary accounts do not provide any interest | Based on the current interest rate, the interest on the accumulated sum is applicable quarterly |
| Conversion | In case the salary is not credited to the account for 3 months, then the bank converts the salary account into a regular savings account | In case the individual already has a savings bank account with the bank in which his/her company has a tie-up, then the employer requests the bank to convert it to a salary account |
| Who can open the account? | A salary account can be opened by the employer. To open a salary account a company must have a tie-up with the bank | Any individual can open a savings bank account |
Similarities Between Salary Account and Savings Account
- Both the Savings and Salary accounts offer the passbook facility.
- Both accounts send alert notifications for transactions.
- Get the benefit of 24/7 banking services.
- Quick and hassle-free account opening process with minimum formalities.
- Both type of account holders can use the phone banking facility.
- Account holders can enjoy the benefit of net banking.
- No charges are applicable for using the ATMs
- Both types of accounts have electronic fund transfer facilities.
