Employers can pay employees their monthly salaries through salary accounts, which is a practical method. In addition to making things simpler for the business, it also offers employee salary account perks.
A salary account is a specific form of savings account where a defined sum of money is deposited each month as “salary” by the account holder’s employment.
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By definition, a salary account is a form of savings account in which the employer of the account holder deposits a set sum of money each month as “salary.”
The bank occasionally permits individuals to open salary accounts on their own, but they require some form of job verification from the employer where the person is employed.
- Salary account eligibility
Salary accounts are provided by a number of Indian banks to paid workers.
To open a Salary account, each bank has a set of eligibility requirements. Although they vary from bank to bank, generally speaking, most banks look for the following:
- An employed person, as opposed to a self-employed person, who requires an account where his or her salary can be credited on a monthly basis.
- The salary range required to open an account at a certain bank is also stated by some banks.
- Qualification requirements for opening a salary account
You must first meet certain eligibility conditions in order to open your salary account. Those who qualify may start a salary account by:
- Submitting the appropriate documentation for a salary account along with a properly completed and signed application form.
- Your employment offer letter, employment contract, and introduction letter from your business all need to be in the bank’s format and must be stamped and signed by an authorized signatory.
- Only those who make a minimum net monthly salary of Rs. 10,000 are eligible for a Salary Account.
- How do I open a salary account?
One of the first perks that new hires at an organization receive from their employer is a salary bank account.
For the salary account to be opened, employees must complete an application form, which the employer subsequently sends to the bank. The account can be started without any funds in it. The employee’s monthly paycheck is deposited into this bank account by the business.
- You can start a salary account using the procedures listed below:
- Online form
To start the application procedure, fill out the Salary Account form online.
- Get in touch with your relationship manager
You might request that a member of your human resources department contact your relationship manager and offer any pertinent details for setting up a salary account.
- Go to your neighborhood branch
Fill out the application at your bank and bring your KYC documents and passport-sized photos to start the process.
- Documents required
- A request form filled-out application form
- passport sized pictures
- Aadhar cards, passports, driving licenses, voter ID cards, and other identification documents are examples of ID proofs.
- HR appointment letters, confirmation letters of employment, or pay stubs.
In addition to deposits and withdrawals, your salary account can help you with the key services listed below:
- Purchase a home
You can purchase a home with a salary account and live in it while paying for it. You may have a better chance of your bank approving mortgage help if you have a salary account and work for a recognized company. For the mortgage loan repayment period, certain banks may grant you up to 20 years.
- Loan without collateral
If you don’t have an asset to pledge as collateral for a lending facility, you can show your salary account to the bank. Even if you work for a company that has a history of late salary payments, certain institutions accept salary accounts as collateral. Your bank may grant you access to additional loans each time you submit an application as long as you don’t default on your loan.
- Hire purchase
Via your company, you are able to purchase items on a rental basis. Your salary will be routinely withheld to cover the cost. This enables you to keep the assets and use them even before you have paid off the debt in full.
- Conclusion
Employees have access to a specific sort of savings account called a salary account. It is among the easiest ways for the business to give the employee monthly compensation.
With Fi.Money, there are no minimum balance requirements, and one receives a free VISA Platinum debit card with no foreign exchange fees, priority customer assistance, and many other benefits. The rewards are not just limited to this! With tools like Linked Accounts, Analyzer, Goal-based saving, SIPs, and scheduled payments, Fi.Money will also assist you in managing and growing your financial resources.
