Most working adults have two bank accounts: a basic savings account and a salary account. As the name suggests, a salary account is one where your salary is credited. And a savings account is one where you keep your savings. But if you have ever been confused between the two or questioned the need for these accounts, you are at the right place.  

Here, we will break down the differences between salary accounts and savings accounts, including their purpose, any minimum balance requirements, and more.  

Salary Accounts vs. Savings Accounts: Key Differences 

1) Account opening: First things first: who can open the account? Even though a salary account is also a type of savings account, it can only be opened by your employer. Companies usually tie up with banks to open corporate salary accounts for their employees.  

A savings account, on the other hand, can be opened by anyone. In fact, you can open an Airtel Payments Bank Savings Account through your smartphone within minutes. It’s that easy! 

2) Purpose of the account: A salary account is opened by an employer for the purpose of crediting their employee’s salary. For this, the employee provides essential information to the banking representative, and they are handed a welcome kit almost immediately or soon after.  

But savings accounts are not opened for the same purpose. You usually open it to deposit your money, earn interest on it, and grow your savings. You can even use your Airtel Payments Bank Savings Account as a safe second account for day-to-day spending, while keeping your main savings account for only savings.  

3) Minimum balance requirement: A salary account is always a zero balance account, meaning you are not required to keep any amount of money in it. As soon as your salary is credited, you can withdraw all of it without worrying about keeping a minimum balance or penalty.  

Even the most basic savings account, however, requires you to maintain a minimum balance in your account, which varies from bank to bank. If your balance falls below the threshold, the bank can charge a penalty for the same. But at Airtel Payments Bank, we do things differently. With our zero-balance savings account, you don’t have to maintain any minimum balance.   

4) Account conversion: Now here’s where things get interesting. Salary accounts are automatically converted to savings accounts if no salary is credited for 3 months or more. This also means that the terms and conditions of a savings account will be applied to your account moving forward.  

When it comes to converting a savings account into a salary account, it isn’t so simple. If you already have a savings account in the same bank where your employer wants to open your salary account, your existing account can be converted with the bank’s permission.  

5) Interest rates: Both accounts offer interest, but the interest rate may vary, depending on the type of savings account or salary account you have with the bank. 

The Bottom Line 

All in all, there are plenty of differences between a savings account and a salary account. Whether it’s the purpose of the account or the minimum balance requirements, the two accounts operate on different terms and conditions. But it is sufficient to say that every working adult must have these two types of accounts, if not three.  

The third one? That’s the Airtel Payments Bank Savings Account for your everyday spending, so you can keep the other two accounts safe. Click here to get started! 

FAQs 

1. Are there any savings accounts with zero balance requirements? 

Yes, Airtel Payments Bank offers a zero balance account where you can deposit your savings, without having to maintain a minimum balance.  

1. Do I have to change salary accounts if I change my company? 

Yes. However, if your new and previous company both offer salary accounts with the same bank, you can ask the bank to make an exception.  

1. Can I convert my basic savings account to a salary account? 

Yes, savings accounts can be converted to salary accounts, provided your employer has a corporate relationship with the bank your savings account is in.