In a flurry of text messages pinging on our phones, we wait for one to beep: "Your Account has been credited with XXXXX." While money can't buy happiness, this statement on payday brings a smile to everyone's face. The true happiness of opening an online salary account can be summed up by this event.
Salary accounts are a handy way for the company to pay the employee's monthly salary. It not only simplifies the process for the business but also provides salary account benefits to the employee.
When it comes to being physically fit, your fitness trainer can often keep you motivated. Similarly, your salary account will undoubtedly keep you driven to stay financially fit. This article will walk through how to open a salary account online, the documentation required, eligibility and how to choose the best bank to open a salary account.
The opening of a salary account is usually done by the employer at a bank with which the company has a relationship. It is not something that employees normally do unless the employer gives special permission. The company deposits all employee’s salaries into their salary accounts.
Employers select the kind of salary account based on which employees are granted advantages and amenities associated with their salary accounts. This account is crucial for employees as a salary account is regarded to be the most important way to accommodate your financial obligations.
When an employee joins a company, a salary account is among the first things they obtain from the employer. An application form must then be fulfilled, which is submitted by the employer to the bank.
To open a salary account online or offline with the affiliated bank, the employee must provide their information to the same bank.
Opening a salary account with a bank is required when you’re starting a new job. The employer transfers the employee's monthly salary into this bank account at the end of every month or week as per their agreement. With the advancement of technology, some banks now allow you to open a salary account online.
To open a salary account, you must meet certain qualifying requirements. Since you’ll be opening a salary account when you join an organisation, it’s most likely you’ll meet all the eligibility requirements, and all you’ll have to do is submit a completed application form together with the required papers.
Some banks ask applicants to submit an introduction from the firm in the format specified by the bank (stamped and signed by the authorised signatory). Furthermore, the monthly minimum net salary band differs by the bank. This also varies depending on the type of salary account provided by the relevant bank too.
To open a salary account, employees require the following documents:
What's in it for you after all the hard work of finding a job and enjoying the fruits of your labour and toil? A salary account provides more benefits than a savings account. While the benefits and features of salary accounts vary from bank to bank, these are some of the most relevant ones:
A salary account often has a zero minimum balance requirement. Because this account has no balance, people have more choice in how they manage their money. Account-holders are not subject to any penalties if their account balance remains above a specific limit.
Salary account holders can also send and receive funds online globally through online fund transfers. This eliminates the requirement for cash withdrawals or cheque deposits to complete the fund transfer. Some banks also provide phone banking services, allowing customers to manage their accounts from the comfort of their own homes.
Employees are also given an ATM card that they can use to withdraw cash from ATMs and make online and offline debit card payments. For cheque payments, account holders receive individualised cheque books.
Account-holders can also get fast access to a variety of loans from banks. Having your salary account in the same bank as your bank account will make the documentation process smoother and quicker, regardless of whether you're searching for a personal loan, a vehicle loan, or a home loan. Even the interest rate for existing account holders is often more competitive.
Salary account opening allows account holders to invest in financial schemes such as mutual funds, bonds, insurance, and more. A Demat account may also be linked to a salary account for stock investing and trading.
While employees don’t always play a part in selecting the bank for the opening of a salary account, it is still important to understand the metrics involved. Below are a few specifications to consider before opening a salary account.
Although a salary account is a type of savings account, it has a few advantages and characteristics that make it more beneficial than a standard savings account. Bank features and perks can differ significantly. Businesses should carefully select a bank to guarantee that their workers receive the best advantages. Fi is one such app that offers several benefits for both types of accounts. It is simple to use with no burden of going to physical branches or enduring tiresome paperwork.
The salary account opening is usually done at a bank with which the employer has a tie-up. This is not something that employees do.
Each bank has its own set of qualifying requirements for opening a salary account. They vary by bank, but in general, most banks look for the following:
To open a salary account, you need an address and identity proof, passport size photograph and proof of employment.
If an employee's pay is not credited to their salary account for three consecutive months, their regular salary account is changed to a regular savings account.
One of the most regarded benefits of opening a salary account is that there is no requirement to maintain a minimum balance.