Salary Account vs Savings Account

[VGisHere]

I'm currently holding a savings account in which salary gets credited monthly!
So far, I have not felt the need for switching from Savings to Salary, but I do hear some associated benefits mainly like, No MAB, access to premium cards, more negotiating power with respect to certain features, etc, etc.

But I haven't had a complete clarity on the same.

On a flip side, god forbid something unfavourable happens, like job gone or job with lower salary or lets say, if someone gets more lucrative salary account offer, in that case all the premium benefits in no time would become chargeable and could possibly cost handsome amount.

So, if someone who has researched on salary accounts with different salary ranges, say, <1L, <2L, <3L, >3L could share their experience, would be greatly helpful for all those in a conundrum about the same!

 

[helloworld]

Salary account basically 'free account' ( no mab, free imps/neft, free debit card/sms charges etc.)

• assigned to an RM (who process your requests with entire company/corporate in mind, basically same person deals all employees in your company, so higher negotiating power with bank when you want to try something from this person, there are high chances - again that depends on this person targets on you, selling ULIPs etc.).
  
  
• Chances depends on how much your company value to the bank.

Attractive interest rates on loans, some banks offers overdraft facility for salary account holders etc.

Where as savings is based on the account variant, they charge fees on various types, have to maintain mab.

• RM depends on your relatinship with bank has power to handle / ignore your requests - again that depends on this person targets on you, selling ULIPs etc.).
  
  
• Chances depends on how much value you have on the bank.

Attractive interest rates on loans, credit cards based on credit score and income requirements, no overdraft facility.

Savings is like: Amz*n without any subscription

- If item not crossed certain limit, they charge delivery fee.
- If required in one or two days, they charge extra.
- No add-ons like music, movie benefits

Salary is like: Amz*n Prime Subscription

- No min. amount (with Tncs)
- Can get the order quickly without any charges (connecting to support, handling requests, working with RM)
- Some add-ons (family banking, overdraft etc.)

In both cases, your order (request) delivered but have to be in patience without any subscription compared to other, along with few add-ons.

Note: Just explained based on my observation, and your question needs which bank you have relationship, based on that few might help you how to get best out of it, or which one better in that bank along with differences.

Also, above explanation not applicable to all banks salary accounts, some provides good services but some behaves like savings - again, depends on bank/branch.

 

[sauravkumar]

Salary account basically 'free account' ( no mab, free imps/neft, free debit card/sms charges etc.)

• assigned to an RM (who process your requests with entire company/corporate in mind, basically same person deals all employees in your company, so higher negotiating power with bank when you want to try something from this person, there are high chances - again that depends on this person targets on you, selling ULIPs etc.).
  
  
• Chances depends on how much your company value to the bank.

Attractive interest rates on loans, some banks offers overdraft facility for salary account holders etc.

Where as savings is based on the account variant, they charge fees on various types, have to maintain mab.

• RM depends on your relatinship with bank has power to handle / ignore your requests - again that depends on this person targets on you, selling ULIPs etc.).
  
  
• Chances depends on how much value you have on the bank.

Attractive interest rates on loans, credit cards based on credit score and income requirements, no overdraft facility.

Savings is like: Amz*n without any subscription

- If item not crossed certain limit, they charge delivery fee.
- If required in one or two days, they charge extra.
- No add-ons like music, movie benefits

Salary is like: Amz*n Prime Subscription

- No min. amount (with Tncs)
- Can get the order quickly without any charges (connecting to support, handling requests, working with RM)
- Some add-ons (family banking, overdraft etc.)

In both cases, your order (request) delivered but have to be in patience without any subscription compared to other, along with few add-ons.

Note: Just explained based on my observation, and your question needs which bank you have relationship, based on that few might help you how to get best out of it, or which one better in that bank along with differences.

Also, above explanation not applicable to all banks salary accounts, some provides good services but some behaves like savings - again, depends on bank/branch also (because for some branches savings can provide all of them without salary account).

Very well explained!!👍👍👏👏👏

 

[VGisHere]

Those are beautiful insights @helloworld
Thank you.

Door is still open for following query though 😅 -
The premium charged on services being provided for free once the salary is no longer credited into salary account! Would it be worth?
It would be like you have amazon prime membership, and it got expired, and you need to make an urgent purchase with say one/same day delivery, and as a result you have to pay extra premium in that case!
There could be number of possible reasons. Lets say one no longer has a job, or decided to venture a startup with no returns in the beginning or switched job to lower salary or decided to go for salary account with another bank or what not!

 

[Sreerag]

I'm currently holding a savings account in which salary gets credited monthly!
So far, I have not felt the need for switching from Savings to Salary, but I do hear some associated benefits mainly like, No MAB, access to premium cards, more negotiating power with respect to certain features, etc, etc.

But I haven't had a complete clarity on the same.

On a flip side, god forbid something unfavourable happens, like job gone or job with lower salary or lets say, if someone gets more lucrative salary account offer, in that case all the premium benefits in no time would become chargeable and could possibly cost handsome amount.

So, if someone who has researched on salary accounts with different salary ranges, say, <1L, <2L, <3L, >3L could share their experience, would be greatly helpful for all those in a conundrum about the same!

You are absolutely correct. Salary accounts have more perks than savings account. However, it depends on the bank and account type to see if your eligible for an RM. A PSU Bank will not have a RM, and it also depends on your salary (account type)

If by any unfortunate means you lose your job, you will be given 3 months time till your account will be converted back to savings. If you get lower salary, your account may get degraded. If you change your employer, make sure to close that account as it gets converted back to savings.

Any salary above 60K is good for banks, and when it's 2L+ they're very happy and that's why the give you loans on low interest to make money 🤑.

Generally the account scheme is like this:
10K -30K basic account
30K-60K mid-tier account
60K-1.5L high tier account
1.5L-3L ultra high tier
3L-5L HNI account
5L+ Ultra HNI
(Per month take home salary)

 

[VGisHere]

Most banks offer their premium category debit cards which have non-spend based benefits at par with premium credit cards without any charges as long as it is a salary account! However, if person decides to change salary account to another bank, then these debit cards would become chargeable.

So what's the suggestion in this case, close the debit card and ask then to issue lower variant one?

 

[Sreerag]

Most banks offer their premium category debit cards which have non-spend based benefits at par with premium credit cards without any charges as long as it is a salary account! However, if person decides to change salary account to another bank, then these debit cards would become chargeable.

So what's the suggestion in this case, close the debit card and ask then to issue lower variant one?

Yes! These debit cards usually have annual fees above 2K and since you're not using the account, either close the account or downgrade to any low card whose annual fees is 0 or 200 (minimum).

 

[VGisHere]

Thanks!

So what are some good options for salary account?

 

[cardwizard]

I'm currently holding a savings account in which salary gets credited monthly!
So far, I have not felt the need for switching from Savings to Salary, but I do hear some associated benefits mainly like, No MAB, access to premium cards, more negotiating power with respect to certain features, etc, etc.

But I haven't had a complete clarity on the same.

On a flip side, god forbid something unfavourable happens, like job gone or job with lower salary or lets say, if someone gets more lucrative salary account offer, in that case all the premium benefits in no time would become chargeable and could possibly cost handsome amount.

So, if someone who has researched on salary accounts with different salary ranges, say, <1L, <2L, <3L, >3L could share their experience, would be greatly helpful for all those in a conundrum about the same!

Answering the point you mentioned regarding getting another lucrative salary account offer,
So suppose you get a better salary account offer then you can make that your primary salary account and transfer some amount to prev salary account every month, in this case, you would be able to enjoy premium benefits from both banks.

 

[kushhh]

What banks offer OD facility ?

 

[VGisHere]

Answering the point you mentioned regarding getting another lucrative salary account offer,
So suppose you get a better salary account offer then you can make that your primary salary account and transfer some amount to prev salary account every month, in this case, you would be able to enjoy premium benefits from both banks.

Oh, is this possible? I thought banks track the salary deposit details making sure that NEFT comes from a registered company!

 

[Sreerag]

Thanks!

So what are some good options for salary account?

I guess HDFC is the best, assuming you get good CC offers followed by ICICI, you get more benefits, and then Axis. However no one can beat SBI 😂

 

[VGisHere]

I already have Classic bank account with HDFC and hold a Regalia LTF!
Not sure what extra benefits would HDFC provide 😅

 

[VGisHere]

Do we have a forum that compares different salary ranges and different salary account with features and benefits? 🙈

 

[Sreerag]

I already have Classic bank account with HDFC and hold a Regalia LTF!
Not sure what extra benefits would HDFC provide 😅

Salary accounts have more benefits. It can make the account 0 MAB, free debit card and can get you DCB LTF if you're lucky. If not, you can use ICICI Salary Account and get Sapphiro LTF, also with a RM