Salary accounts are particular types of savings accounts provided to employees. Through a banking relationship, the employer credits its employees’ monthly salaries to their respective salary accounts. Both the company and the employee benefit from this arrangement.
Fi.Money, in collaboration with its licensed partner Federal Bank, provides a salary account with a variety of features. To begin, you receive 10% of your monthly salary in Fi.Money-Coins. You will also earn 5,000 Fi.Money-Coins as a joining bonus. These Fi.Money-Coins can be used for a range of exclusive benefits. Salary accounts simplify the entire procedure for the company while providing significant rewards to the employee (it also offers more advantages than a regular savings account).
Considerations When Choosing A Bank To Open A Salary Account:
Choosing the best bank for a salary account can be difficult. Before making a decision, consider the following factors:
When looking for the best salary account, the interest rate is one of the most significant factors to consider. Each bank has set a different interest rate. As a result, you should examine the rates of the major banks and choose the most suited one.
- ATMs and Debit Card Acceptance
ATM and debit card services comprise the total number of ATM withdrawals permitted and the availability of ATMs throughout the country. Choose the financial institution with the most branches or an online platform with the most transactions.
- Access to digital banking platforms
If you haven’t already, you should join the digital revolution. Look for banks that can help you bank safely from home and provide seamless digital banking services. It is also advantageous to locate a bank that provides excellent customer service.
- Interest Rates
Several interest rates are available depending on the bank and the kind of savings account.
- Additional Services
Other services provided by banks include health care plans, discounts on lounges, on-demand salaries, and so on. Before selecting the finest bank to open a salary account, look for great deals. With a reputable bank, you can be confident that your money is safe.
- Understanding the advantages and functions of salary accounts
Below mentioned are some of the most notable benefits of opening a salary account:
- There is no required minimum account balance
A salary account is typically a zero-balance account. That suggests that you can register a salary account with no minimum balance, and account holders don’t have to worry about exceeding a set limit or incurring penalties. Furthermore, the zero-balance aspect of a pay account gives salaried people more choices in how they manage their money.
- Mobile banking and online fund transfers
With a salary account, account holders can also quickly receive and send money over the world. It reduces the need for cash withdrawals or cheque deposits to complete the fund transfer. Furthermore, several banks and financial institutions provide mobile and Internet banking services, allowing account users to conduct various transactions from the comfort of their own homes.
- Customized chequebook and debit card
Workers are also given an ATM card, which they can use to withdraw money from ATMs and make offline/online debit card payments. Account holders also receive individualized chequebooks for lump amount payments.
- Loans are readily available
Banks and financial organizations provide pay account customers with rapid access to a diverse range of loans. Keeping your pay account in the same bank or financial institution will make the documentation process easier and faster, whether you are searching for a vehicle, personal, or home loan. Also, interest rates are frequently more competitive for existing account holders.
- Improved investing services
Salary accounts allow account holders to easily invest their income in government bonds, mutual funds, life insurance products, and other goods. A Demat account can as well be linked to a salary invoice for trading and stock investing.
- The distinction between a salary and a savings account:
Salary accounts are also known as zero-balance accounts because they do not have to maintain a minimum balance. On the other hand, banks ask you to maintain a particular minimum balance in your savings account. Penalties may be imposed if a certain minimum balance is not maintained.
Salary and savings accounts serve separate purposes. Furthermore, a savings account aids financial management by storing or parking funds, and your employer deposits your paychecks to a salary account.
A corporation or a partnership firm can only open a salary account. This account is often unavailable through your preferred bank because it is supplied through a relationship between your company and the bank. Similarly, your employer will only unlock one salary account for you. A savings account is a sort of personal account that allows customers to manage their money.
While both accounts have advantages, a salary account has no minimum balance restriction and the account owner can enjoy the benefits as long as there is a monthly salary tribute. If the pay is not received, the account is automatically transformed into an ordinary savings account.
To summarize, salary accounts are a type of savings account, but they have various features and benefits that make them superior to savings accounts.
Additional benefits offered by Fi.Money include no minimum balance, a complimentary VISA Platinum debit card with no foreign exchange fees, priority customer support, and more. Not only that, but Fi.Money will help you manage/grow your money with tools like Linked Accounts, Analyzer, Goal-based Saving, SIPs, and automatic payments. As a result, examine the benefits and features of both pay and savings accounts before closing or converting the account.