What to Look for when Opening a Salary Account
Introduction
A salary account is a type of bank account that is designed specifically for salaried individuals. It is used to receive regular salary payments and may come with features such as a debit card, internet banking, and other benefits. Salary accounts are typically offered by banks to help employees manage their finances and receive their earnings easily.
Five factors to consider when opening a salary account
One must consider certain factors before opening a salary account to ensure a privileged and hassle-free banking experience. These include:
- Minimum balance:
Banks specify a minimum average balance for all bank accounts. Salary accounts are zero-balance accounts and the minimum balance stipulation is waived for these accounts. - Interest rates:
Every bank offers interest for funds deposited in accounts. Selecting a bank that offers the maximum interest rates is ideal if one is looking to grow their finances. - Net banking/mobile banking facilities:
Instant and hassle-free access to a bank account is a crucial requirement. A salary account needs to be supported by net banking and mobile banking facilities. - Debit card/credit card facilities:
Adebit card makes cash withdrawals at ATMs and shopping easy. Choosing a salary account that provides a debit card with special offers and perks will be an add-on. - Service charges:
Banks have stipulated charges for national electronic fund transfer (NEFT) and real-time gross settlement (RTGS) transactions, as well as for SMS facilities, debit cards, and more. These service charges will be waived in the case of salary accounts.
Benefits of Salary Accounts
Here are the benefits offered by a majority of salary accounts:
- Zero minimum balance
- Free chequebook and debit card
- Netbanking/mobile banking facilities
- Online, free fund transfer through NEFT and RTGS
- Credit card offers
- Utility bill payment facilities
- Loans
- E-statements
Features of Federal Bank Salary Accounts
Federal Bank provides a range of salary accounts with special features. Here are the different types of Federal Bank Salary Accounts:
- FedSalary
- FedSalary Premium
- Imperio Salary Account
- Celesta Salary Account
Some common features of Federal Bank Salary Accounts are:
- Zero minimum balance
- Free netbanking/mobile banking facilities
- Unlimited Federal Bank ATM transactions
- Free insurance cover (depends on the salary account chosen)
- Complimentary debit card facility
- Discounted interest rates for specific loans
- 20 cheque pages free every six months
- Free RTGS/NEFT funds transfer facilities
- Free ATM access to Federal Bank as well as other bank ATMs
- Overdraft facility up to 80% of monthly salary
- Discount of 25% on locker rent (maximum of Rs. 1,000)
- Free family account
- Special offers on shopping with the Imperio debit card
- 50% discount on locker rent (maximum of Rs. 1,000)
- 50% concession on processing fees of housing/car loans
- Non-resident ordinary (NRO) account with zero balance
- Doorstep banking at designated branches
- Dedicated customer care
- Facilities extended to all family members
- Customised insurance benefits
- Dedicated customer care
- Doorstep banking
Conclusion
Before opening a salary account, it is imperative to consider factors such as bank fees, interest rates, convenience, customer support, and security.