Question: Can Salary Account Be Used For Other Purposes?

What happens to salary account after employee resigns?

However, as the higher benefits are offered on the basis of the salary account, banks convert salary accounts into regular savings accounts when the employees quit their jobs.

On conversion, the charges schedule and average monthly balance requirement of regular savings account comes into effect..

Can salary account be transferred?

However for transfer of an account, you would to need to submit an application/ request letter to your home branch or get your Account transferred through Internet Banking. … You would need to intimate your employer about your existing Bank details, so that the monthly salary credits are routed through the same account.

Can I convert my salary account to zero balance account?

Accounts Topics Also, you would be unable to convert your existing account to a zero balance account. We would advise you to convert the existing salary account to general savings account, with a monthly average balance to be maintained at minimum of Rs. 10,000.00 or as applicable.

Is salary account a real account?

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

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.

How much can be deposited in zero balance account?

Note that, some zero balance accounts come with certain conditions like one needs to open a Fixed Deposit with the bank, which can range from Rs 50,000 to Rs 2 lakh, or opt for a mutual fund SIP of a certain amount per month.

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

If your bank account is no longer useful, best is to close the account. … The bank starts deducting charges for non maintenance of minimum balance. A senior executive of ICICI bank said, “We normally inform the employers in case the salaried account is discontinued due to non credit of salaries.

Can a company withdraw money from salary account?

Once salary or for that matter any amount is credited to a bank Account, it can not be reversed or withdrawn by bank. If at all any mistake has occurred and employer is able to convince the bank suitably, then only after getting indemnity and all, Bank may reverse the entry.

What is the difference between salary account and normal account?

While a Salary Account is usually opened with the purpose of an employer crediting the salary to the employee, a Savings Account is opened to deposit money for the purpose of holding or saving it with the bank. Both Savings and Salary Accounts can be opened as an Insta Account.

Can I deposit cash in salary account?

Yes,deposits can be made in salary account. The bank won’t deny it, if your account is credited with some amount other than your monthly salary. If need arises,you should be able to justify the source of income/deposits i.e. whether you have earned it from somewhere or the money has been gifted by someone.

What is the benefit of salary account?

However, there are certain common benefits that come with a Salary Account – zero minimum balance, free cheque book / passbook / e-statements, Debit Cards, NetBanking, Phone Banking, online fund transfer, Demat Account/services, loan conveniences, Credit Card offers, utility bill payments, etc.

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.

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.

Is it safe to keep money in salary account?

The answer is : YES. Having more than 1 account is always advisable. … If you keep all your money in Salary account, which is having a Debit card and Internet banking facility, there is very high chance of spending more money. So to keep unnecessary expenses in check, you should have more than 1 account.

Does salary account have interest?

One important difference to know, apart from the above is that a salary account may entitle you to an easier loan, as well as credit cards….Savings Account.Salary accountSavings accountInterest ratesNo Interest paid4%-6% interest is paid4 more rows•Feb 28, 2020

Can bank employees see your accounts?

Can a bank employee see your account balance? Yes, they can. You don’t need to worry however. … Also, they have a lot of work to do, so they don’t care.

Who opens a salary account?

Open a Salary Account in 3 easy steps. Salary Accounts can only be opened when an employer ties up with a bank. With this tie-up, the employer can transfer the monthly salaries in bulk in respective Salary Accounts of the employees.