Question: Is Salary Account Safe?

Is current account and salary account same?

Primary difference between savings and current account No interest is normally paid on a current account, while you get regular and periodic interest in the case of a savings bank account.

Salaried individuals should not open a current account, unless they have a business..

What happens if I don’t close my salary account?

One main criteria of salary account is regular credit of salary. If salary credit stops and there is salary credit for three months and account holder does not close the account, such account gets converted to normal saving account with requirement of minimum monthly average balance as per location.

Which bank is better for salary account?

The following is the list of best 5 salary accounts available in India: Kotak Platina Salary Account. SBI Corporate Salary Package. HDFC Bank Classic Salary Account.

Is salary account savings or current?

Savings AccountSalary accountSavings accountMinimum BalanceNo Minimum BalanceMinimum Balance RequiredConvertibilityIf the salary is not credit for 3 consecutive months, it is considered as savings accountOne can convert to salary account , if the bank allowsInterest ratesNo Interest paid4%-6% interest is paid2 more rows•Feb 28, 2020

Which type of account is salary account?

Savings AccountBy definition, a Salary Account is a type of Savings Account, in which the employer of the account holder deposits a fixed amount of money as ‘salary’ every month. Who can open a Salary Account? A business (employer) has to tie-up with a bank to open Salary Accounts for its employees.

Can money be deposited in salary account?

Yes, you can deposit money in your salary account maintained with the HDFC Bank. You can use the account as a regular account for typical banking transactions. The account can also be used to withdraw the money either from the bank’s branches or ATM’s or using net banking services.

Can we have 2 salary accounts?

However, if you are asked to open an account with a different bank at your new workplace, you must choose between closing the previous salary account and maintaining the minimum required balance. Weigh your needs for multiple accounts and act accordingly.

Is salary account necessary?

The advantage of these salary accounts is the no limit on minimum accounts and certain other privileges which you otherwise do not get as an ordinary bank account holder. You do not need to pay any annual fee on debit cards and some banks also waive off charges applicable when making a draft.

Can we convert saving account to salary account?

On the other hand, if your bank permits, you can convert your Savings Account to your Salary Account. This is possible if you change your job, and your new employer happens to have a banking relationship with the same bank for its employees’ Salary Accounts.

Is salary account a real account?

Salary account is an expense account and is a nominal account.

What happens to salary account after leaving job?

Here’s what happens to your salary account after you leave your job: … These zero balance salary accounts are offered with a critical condition of salary credit by your employer or else the account is converted to a normal savings bank account if the salary is not credited for consecutive three months.

What happens if you dont close salary account?

The salary account is not closed by the bank automatically. They are not permitted to close the account unless you request for the same. Banks can only freeze the accounts if there are no transactions in the account for a particular period.