Salary accounts can be opened when a company has a banking relationship with a bank. With the help of this relationship, the employer can deposit the employees’ monthly salary to their employee’s Salary Accounts. An employer chooses the type of salary account based on the benefits & facilities received by the employees connected to their salary accounts.
Opening a Salary Account
An employee must open a new salary account with a bank in a new job. They must provide their information to the connected bank. In this process, an employer can assist the employee in opening a salary account. Some banks even allow you to apply online for a salary account and receive your debit card, checkbook, and account information within a few days!
Employers select the type of salary account employees receive depending on which employee receives the advantages and amenities linked with their salary accounts. Employees need this account because a salary account is the most significant method to accommodate your spending obligations.
How to Open Salary Account? Step By Step Guide
A salary account is one of the first things employees receive from their employer after starting work. The following are the steps that need to be performed by an employee to open salary account:
1) Fill out the account opening form carefully.
2) The employee must give the connected bank their complete personal information (with documentation) to open a salary account offline, online, or offline.
3) Check all of your paperwork for identification and residency evidence. And you’re done!
As an employee, it’s your responsibility to open your salary account with the connected bank. Following their agreement, the employer deposits the employee’s monthly salary into this bank account at the end of each month.
| Did You Know?
As a result of technological advancements, several banks now let you open salary account online. |
Eligibility Criteria to open salary account
To open salary account, you must accomplish specific eligibility requirements. As soon as you open salary account, you’ll likely meet all the eligibility standards when you join an organization; all you’ll need to do is submit a complete application form and the necessary paperwork.
Some banks request the applicants to submit a description of the company in the format specified by the bank (stamped and signed by the authorized signatory). The monthly minimum net wage band varies by bank as well. These changes are by the kind of salary account the appropriate bank offers.
Documents Required to open salary account
The following documents are necessary to open salary account:
- A properly completed application form to open an account.
- Proof of identity & address like
- Aadhaar Card Number
- PAN Card Number
- Driving License
- Voter ID Card
- Passport
- Public Sector Units (PSUs) and NREGA Job Card
- An ID card issued by the Central or State Government
- Recent passport-size photographs
- Appointment and Offer Letter (as proof of employment with the company)
| Note:
(Take note that a company ID is not recognized as identification. It must be an identity document issued by the Indian government.) |
Conclusion
Opening a salary account has more advantages than opening a savings account. These accounts may offer different benefits based on the bank. These advantages include online money transfers, phone banking, and other online banking transactions. Also, you can avail of facilities like zero balance, passbook, free statement, and debit card. Having a bank account and access to services like loans and credit cards is advantageous for people with salary accounts. You may also pay utility bills with a salary account.
