With the evolution of banking services in India, banks today offer a variety of different accounts to meet varying customer needs. One such specialised account is a salary account, which is offered exclusively for individuals earning a salaried income. If you belong to this category of individuals, here’s everything you need to know about a salary account, its key features, the benefits of a salary account and more. 

What is a Salary Account?

A salary account is a special type of savings bank account that is designed for salaried individuals. You can use it to receive your salary from your employer each month. Employers tie up with leading banks in the country to open salary accounts for all of their employees. This makes it easier for companies to manage their payroll and salary payment requirements.

Features and Benefits of a Salary Account

Salary accounts have certain distinct features that set them apart from regular savings accounts. Furthermore, there are also various advantages of salary accounts that you may not obtain in a standard Read More savings account. Here’s a closer look at the key features and benefits of a salary account in India. Read Less

Zero Balance Accounts

The salary account minimum balance is generally zero. This means you will not have to pay a penalty even if you do not have any balance in your account.

Mobile and Phone Banking

Salary accounts also come with mobile and phone banking features, so you can check balances and conduct other transactions conveniently from your mobile phone. 

Easy Fund Transfers

Another benefit of salary accounts is easy fund transfers through various options like NEFT, RTGS, IMPS and more. 

A Wide Range of Banking Products

As an account holder, you can also get access to an array of banking products like personalised chequebooks, debit cards and more.

Access to Loans

Banks consider salary account holders as reliable customers due to a regular influx of funds, making it possible to enjoy preferential loan rates or quicker approvals.

Investment Facilities

Many banks offer investment advisory services and products exclusively to their salary account holders, so they can make informed decisions about their finances.

Who can Open a Salary Account?

Salary accounts are exclusively offered to salaried individuals only. Typically, opening  a salary account online is only supported when a bank has a tie-up with the employer. So, any employee whose employer has partnered with a bank can open a salary account online with that bank.


However, in some cases, a few banks may allow salaried professionals to open a salary account independently. This is generally only allowed after the bank has thoroughly verified the applicant’s source of income. 

Things to Consider when Choosing a Bank for Opening a Salary Account

Before you open a salary account online, consider the following aspects to make an informed choice. 

  • The salary account minimum balance requirement 

  • The charges for ATM withdrawals and other services

  • The number, location, and accessibility of the bank's ATMs

  • The intuitiveness of the bank’s online and mobile banking platform

  • The bank's reputation for customer support and service

  • The interest rates offered on account balances

  • The additional benefits offered to salary account holders


This sums up the key details you need to know about a salary account. In most cases, your employer will carry out the due diligence on your behalf and choose a competitive service provider. As an employee, all you need to do is ensure that you are aware of the fees, features and benefits of your salary account. This will help you make the most of the account while you have it.

Frequently Asked Questions

How is a salary account different from a regular savings account?

A salary account is often a zero-balance balance account, while the minimum balance for a regular savings account is typically higher. Furthermore, the additional benefits of a salary account may include a debit card, higher transaction limits and preferential interest rates.

Can I open a salary account online independently, or does it have to be through my employer?

Typically, a salary account is opened through your employer, who partners with a bank to provide this service to employees. However, opening a salary account online independently is possible with some banks.

What are the advantages of a salary account?

The benefits of a salary account include no/low minimum balance requirements, minimal or zero non-maintenance fees, access to a wider range of financial products, preferential loan rates and various discounts.

What happens to my salary account when I change jobs?

When you change jobs, your new employer may require you to open a new salary account with their preferred bank. You can either close your previous salary account or convert it to a regular savings account, depending on your bank's policies.

Is it mandatory to have a salary account to receive my monthly salary?

While many employers prefer to pay salaries through salary accounts for convenience, it is not mandatory by law. You can request your employer to pay your salary to any bank account of your choice.

Invest In Other Products

Get up to 7.25% p.a.* with monthly interest payout options on AU Savings Account Open Account
Loan Offer
Download App