Diffrence between salary account & savings account 2019-20 financial year

                                     

INTRODUCTION ABOUT MYSELF

Hi am rajesh kumar and this is my first blog. Because am a banking professional, while I face to my customer then they having lots & lots of quirey about banks. Whether its related to banking fraud, loans. taxation and many more. So I decided from the today onward I will try to explore my banking knowledge through my blog. If you want to explore any particular topic through my blog then you can comment me definitely I will do the same. 

SALARY ACCOUNT Vs SAVINGS ACCOUNTS

Now without wasting the time lets discuss about today topic. which is salary account vs savings accounts. we will divide this topic in two parts first is salary & and other one is savings. we will discuss one by one. So first we will take Savings part

SAVINGS ACCOUNT

Savings accounts are those accounts which open by us. Means you have to fill up a savings account form which is available in bank, and submit your kyc (know your customer) like pan card, adhar card/driving license etc, photograph and one valuable cheque of other bank. The amount on cheque is depends upon bank to bank and account varient it could be 1k, 2k, 5k, 10k,50k etc. If you want to open your account in government bank then amout is less. And in private bank amount is starting from 10k. Again it's depend on bank to bank. 

       In savings account you have to maintain a particular amount like 10k, 5k etc. Here maintaining particular amount its not mean that you can't withdraw that amount. Because it's a savings account so you can withdraw your money any time. 

      Now question is arising that if your money is not locked and you can withdraw your money any time any where so why maintain words is using here. Here maintain means your monthly average balance should be 10k,  5k, 20k,50k. Let's clear this confusion with an example.

Suppose you want to open a savings account in KOTAK MAHINDRA BANK. You visited to nearest branch of kotak mahindra bank. And bank person saying you that we have four variant of savings account 

1. 10,000  Monthly average balance
2. 20000 Monthly average balance
3. 50000 Monthly average balance
4. 100000 Monthly average balance.

Suppose you choose 10000 monthly average balance account. So that's means your monthly average balance should be not less then 10000. This is basic calculation of all banks to calculate average balance. The calculation is

add all the balances in your account day wise. for example

on first Dec the balance was 5000

on 2d Dec the balance was 10000

on 3rd Dec the balance was 20000

on 4th Dec the balance was 12000

on 5th Dec the balance was 15000

now lets add all the above amount which is Rs.62000. Now the days is 5 and amount is Rs.62000 so after dividing 62000/5 the answer is 12400. so that's means your average balance for 5 days is Rs.12400. If you want to know the average balance of whole month then you have to use this method. 

But the good thing is that our banking system getting so smart now days. So you no need to do this calculation for know your average balance. Just you have to go to your net banking and on home page you can see your monthly average balance very easy. 

If you are not able to maintain you monthly average balance then your bank can charge some amount from you bank balance. Again this charge is depends on bank to bank and your account variants.

Apart from that you get cheque book, debit card, net banking, mobile banking. Because this is basic requirements of any customer so it's available free of cost from bank side.

SALARY ACCOUNT

After savings account it's time to discuss about salary account. Like savings account anyone can't open salary account. This account is open through your company where you working. So the only difference between saving & salary account is. Salary account is always zero balance account.

                 My customer always asking that is this is life time zero balance account. So the answer is no. This is not life time zero balance account. This is zero balance account until unless you working in same company in other words we can say that salary is crediting in your account. 

     When you left your origination or your salary is stop credit in your account. Then bank wait for 3 months. If same storey is repeating till three month's then bank automatically convert your salary account in saving account and at this stage you have to maintain particular amount in your account. The amount is depends on bank to bank.

Lot's of people thinks that after quieting their jobs if they stop transaction in salary account. Then bank will close that account automatically after sometime  which is totally wrong perception. Account never close itself until unless you can't requesting or approaching to bank for account closer. If you will start ignoring your account, then your account getting negative balance in minus. And after sometime of period if you again join any company where same bank serving their services for salary account then in that case firstly you have to pay that negative balance to bank then you can continue your salary account with that bank. 

       In my 5 yrs of banking career I see -10000. -20000 negative balance in account. So now question is that what is best way to ignore this situation. So the best way is after quieting your job if you dont want to use your account due to any reason or you are not able to maintain your account. Then you have to visit your branch and just sign closur form and submit in bank. And take receiving from bank.    

  

So that's all for today for my first blog. If you having any suggestion or quirey or any feedback then please comment me. I will available very soon with new topic on my blog.