All employed people have a bank account in which their salary is deposited every month. All companies have a tie-up with some bank in which they open salary accounts for their employees. However, many people also put their salary in their savings account. In such a situation, a question may arise in your mind how are these two accounts different and can there be any loss in taking salary in a savings account?
Let us tell you that both salary accounts and savings account have their benefits. You can open it as per your need. If your salary is deposited in the savings account then there is no harm in it. However, due to this, you are not able to get the benefits of a salary account despite being a salaried employee.
What is the difference between the two accounts?
Salary accounts are opened at the behest of companies. All the employees of any organization get their salary account in which their salary comes every month. Whereas any person can open a savings account. Generally, people who are not employed or salaried, open savings accounts to manage their finances. They get an interest-earning deposit account from this.
Benefits of opening salary account-
If you have a salary account then there is no need to maintain a minimum balance in it. Along with the salary account, you also get a personal checkbook. If your account is at least two years old or more, then you also get an overdraft facility in it. The limit of the overdraft amount is equal to two months' basic salary. Under the overdraft facility, even if there is no balance in your bank account, you can withdraw money up to a fixed limit. At the same time, in case of the death of the salary account holder, personal accident insurance of up to Rs 20 lakh is also available. If no salary is received in someone's salary account for three consecutive months, then the bank converts it into a general account.
Benefits of opening a savings account-
You can open multiple savings accounts in different banks. All government and private banks are offering life insurance coverage including air accidents on their savings accounts. Some banks charge very little fee for this while some banks provide it free. The Reserve Bank provides cover on the amount deposited in your savings account up to Rs 5 lakh.
Generally, normal savings account customers can withdraw only Rs 10,000 from ATMs of other banks and a maximum of Rs 25,000 from their bank. But, premium savings account holders are allowed to withdraw up to Rs 1 lakh in a day. Many banks provide free airport lounge access to their premium savings account holders.
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