- Spot the major differences between the Savings Account and Salary Account.
- See the purpose for opening a savings account and a salary account.
- Check the minimum balance required for opening both accounts.
Many Indians open their account in the bank to deposit their money and earn interest on it. But there is confusion among the accounts because the bank offers different types of accounts like salary or savings accounts. But do you really know the differences between these two accounts? So, the salary account is basically opened by the employer in the bank in which the salary gets credited whereas a savings account can be opened by any individual in India having valid documents. You can spot some more differences between the Savings Account vs Salary Account in this article to understand the difference better. The purpose and the minimum balance required for both accounts differ from each other.
Comparison of Savings Account and Salary Account
You can go through the difference between the Savings Account and the Salary Account in the table given below:-
|Basis of Difference||Savings Account||Salary Account|
|Purpose||A Savings Account is opened with the purpose of depositing money in the bank and it can be opened by any individual having valid documents.||A Salary Account is usually opened by a company or an organization with the purpose of crediting the salary in the same account.|
|Minimum Balance Required||Every bank has different minimum balance criteria for their savings account and every saving account needs a minimum balance.||There is a requirement for the minimum balance to open the salary account.|
|Conversion||You are allowed to convert your savings account into a salary account and it can be due to a job change or your employer is having a relationship with your respective bank.||If in case your salary has not been credited to your Salary Account for a certain period of time then the bank will convert your salary account to a savings account and put minimum balance criteria to that account.|
|Interest Rate||The interest rates offered on a Savings account are the same.||The interest rates offered on a Salary account are the same.|
|Eligible Parties||Any individual in India can open a savings account with the bank only if he has valid documents and the sum of money asked to maintain the minimum balance in the account.||One can open a salary account only if his company has a relationship with the bank and it is usually created by the employer.|
|Loan Disbursals||It is easy to get the loan in a savings account but not easier than the salary account.||It is easier to get a loan if you have a salary account because your regular salary provides security to the bank.|
|Credit Card||The chance of getting a credit card with your savings account is less than with the salary account.||The bank offers credit cards depending upon your salary and the chances for credit card approval are high.|
The salary account is a type of savings account but it is not actually a savings account. There is no need for maintaining a minimum balance in the salary account. So, after exploring the differences between the Savings Account vs Salary Account, you can choose a better account but remember you can’t open a salary account unless and until you are employed somewhere. The employer has the right to open the salary account whereas anyone can open the savings account with the supporting documents and asked a sum of money.