Salary Accounts are opened by an employer or organisation to credit employees' salaries. Generally, banks open these accounts in employees' names when companies request them to do so. Salary Accounts come packed with various features and benefits, which employees can take advantage of once they open them.

Let us explore the features and benefits and whether you can convert a Salary Account into a Savings Account.

Features and benefits of Salary Accounts

Just any individual cannot open a Salary Account with a bank. Instead, an employer or business should tie up with a specific bank to offer Salary Accounts to their employees. Once you open a Bank Account, you can enjoy its various features and benefits. These include the following:

• A Salary Account is usually a Zero-Balance Account. This means you need not worry about having a minimum balance in the account or stress about paying a penalty for failing to do so.
• Such an account boosts the eligibility of individuals for various Loans, including Home Loans, Car Loans, and Personal Loans. This is because banks may consider the Salary Account relationship as a positive factor.
• Salary Account holders can conveniently invest in Government Bonds, Mutual Funds, Insurance products, etc., through this account.
• You can also link a Demat Account to a Salary Account for trading and investing in stocks.
• Employees usually receive a Debit Card with their Salary Accounts. They can use such a card to make payments and purchases offline and online.
• Salary Account holders also usually receive chequebooks to carry out cheque payments.
• Banks may also offer the benefits of Online Banking to Salary Account Using these facilities, individuals can check their balance in their Salary Accounts, transfer funds, and more conveniently from anywhere and at any time.
• Employees can also utilise their Salary Accounts to pay for utilities.
• Salary Accounts ensure the convenience of automatic salary credits. Since the salary is deposited directly into the employee's account, they have immediate access to the funds.
• A Salary Account might also offer employees a range of exclusive deals tailored for convenience and pleasure.

Conversion

When your salary stops getting credited to your Salary Account for a specific period, you can convert it into a Regular Savings Account. Similarly, you can convert a Savings Account into a Salary Account. If you have a Savings Account in the same bank with which your employer or company has a tie-up, the bank can convert the account into a Salary Account.

This is possible when your employer requests it. Hence, you can convert a Salary Account into a Savings Account and vice versa.

Conclusion

Salary Accounts are mainly designed for employees to receive their salaries. Such an account is also packed with various features and benefits. Besides this, you can also convert this account into a Savings Account.