One of the first accounts we open is savings accounts. Whether it is a minor or joint account, there are different variations of a savings account without minor differences in features. However, when we start our professional career and seek employment, the organisation usually opens a salaried account. This works slightly different than the regular account. Most of them own both the accounts. So, what makes them different from each other?
Purpose of the account
Anyone can open savings account irrespective of gender, caste, age, or religion. Banks also have the provisions for special minors, senior citizens, and families. These accounts can be opened in more than one bank for parking savings or conducting financial transactions. Salaried accounts are unique as they are run by corporates and businesses for their employees and used for crediting salaries, bonuses, and other remunerations.
Opening the account
Anyone who wants to open the account can do so in any bank of their choice. The choice depends on varied factors like proximity of the bank from the residence, interest offered on the savings parked, minimum balance requirements, and so forth. Some banks enable you to open an online savings account as well. However, under salary accounts, the holders do not have the liberty to select the bank of their choice. Usually, the company opts for the same bank for all employees.
Documentation
The moment you open a saving account, the bank generally asks for detailed documentation. Bankers personally verify the papers before opening the account. Based on the ones offered, the bank provides customised debit card and cheque book for transactions. The ATM pin and net banking details get sent through email after a few days of opening. As for salary accounts, banks conduct quick documentation check and offer an instant kit which includes chequebook, ATM as well as a debit card, internet banking PIN, etc. You can also ask for a personalised debit card and cheque book once the income gets credited.
Balance maintenance
Banks need their account holders to maintain a minimum amount as a balance in the account always. It is one of the critical requirements of the regular account. It differs from one bank to the other. There is no such prerequisite, however, under salaried accounts. You can withdraw your entire income from the account. However, the withdrawal limit must be met. Precisely why such accounts are called as a zero-balance savings account.
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