Is Salary Account A Savings Account Or Current Account?

What are the disadvantages of current account?

(1) No Interest on Deposits.

(2) High Cost of Bank Services.

(3) Limit of Free Cheque Books and Free Demand Drafts.

(4) Cap on Free Cash Deposits & Free Cash Withdrawals.

(5) Higher Amount of Monthly Account Balance Maintenance.

(6) Confusing Fine Print.

(7) Transaction Fees.

(8) Bill Payments cannot be Automated..

Who needs a current account?

Current accounts is ideal for carrying out day-to-day business transactions. The main objective of this account is to enable the account holder to run his business smoothly as there is no limit on number of transactions or cash withdrawal.

Which salary account is best?

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.Citibank Suvidha Salary Account.Axis Bank Prime Salary Account.

Can we deposit in salary account?

You can put in cash in the Salary Account anytime but be aware that if the monthly number of ‘over-the-counter transactions’ done for the account crosses the specified number, it may attract a small fee. Over-the-counter transactions include depositing cheques, cash and withdrawing cash.

Can I convert my savings account to current account?

It is not possible to convert your savings account to a current account as both the accounts are different in nature and also have distinct features and benefits. While a saving account is meant for personal use and thus can be opened with basic documents for KYC.

How can I convert my savings account to salary account?

You would need to intimate your employer about your existing Bank details, so that the monthly salary credits are routed through the same account. You would also need to intimate your Bank branch for the required change in employer mapping with the Bank.

What is the limit of current account?

Monthly Average Balance (MAB) Requirement on Basic Current Account of Different BanksBankMonthly Average Balance (MAB)Free deposit limitsICICI BankRs.25,00012 times the MABAxis BankRs.10,000Up to Rs.2 lakhsIndusInd BankRs.10,000Up to Rs.2 lakhsCanara BankRs.1 lakh (quarterly)Up to Rs.5 lakhs per day3 more rows

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.

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 savings account?

By 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.

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.

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.

What’s the difference between a current account and a savings account?

Know the difference between a Current Account and Savings Account. A savings account is a deposit account which allows limited transactions, while a Current Account is meant for daily transactions.

Is a savings account considered a bank account?

Checking accounts are better for everyday transactions such as purchases, bill payments and ATM withdrawals. … Savings accounts are better for storing money and earning interest, and because of that, you might have a monthly limit on what you can withdraw without paying a fee.

What is the benefit of current account?

Cheques, pay-orders, or demand-drafts can be issued via a current account for making direct payments to creditors. Overdraft facilities are also available for current account holders. The presence of small interest earnings on account balance makes a current account all the more attractive for its users.