Purpose and Function

• A salary account is specifically designed to receive monthly salary credits from an employer.
• A savings account is meant for general savings and personal financial management.
• Salary accounts are opened through an employer-bank tie-up.
• Savings accounts can be opened individually by any eligible person.
• Salary accounts are tailored for working professionals, while savings accounts suit all individuals.

Minimum Balance Requirement

• Salary accounts generally offer zero minimum balance features.
• Savings accounts usually require a monthly minimum balance, varying by bank.
• If a salary account is not credited for a few months, it may be converted to a savings account.
• Converted accounts must then maintain the applicable minimum balance.
• Non-maintenance in savings accounts may attract charges.

Privileges and Offers

• Salary accounts often come with additional perks and benefits.
• These may include free ATM withdrawals, higher transaction limits, or discounted loans.
• Savings accounts may have standard offers, depending on account type.
• Salary accounts may offer priority banking or special customer support.
• Offers vary based on the organization’s size and bank relationship.

Eligibility and Opening Process

• Salary accounts are opened by the employer for eligible employees.
• Savings accounts can be opened by any individual meeting KYC norms.
• Documentation for salary accounts includes employment proof.
• Savings accounts need only ID, address proof, and PAN card.
• Salary accounts are often processed in bulk for all new employees.

Account Continuity and Conversion

• Salary accounts require regular monthly salary credits to retain status.
• If inactive, the account is converted into a regular savings account.
• Savings accounts remain active with or without recurring credits.
• After conversion, salary account privileges may be withdrawn.
• Users can continue using the account with applicable savings rules.