How To Convert Saving Account To Salary Account?

Most banks in India offer a straightforward process for converting a savings account to a salary account. This switch allows salaried individuals to enjoy exclusive benefits like zero minimum balance, overdraft facilities, and transaction fee waivers. By providing employment proof and a request, account holders can convert their savings account into a salary account without opening a new one.

Key Highlights

Convert your savings account to a salary account using the steps below:

• Visit your bank branch and request the conversion.
• Fill out the conversion form with details like account number and employer information.
• Submit required documents (ID/address proof, salary slip, employment proof).
• Bank verifies details and converts your account, providing new access details.

What Is a Salary Account?

A salary account is a specialised bank account opened for employees to receive their monthly salary. Employers typically tie up with specific banks to ensure seamless and timely salary disbursement. These accounts offer features that make fund transfers easy, ensuring convenience and accessibility for both employers and employees.

Documents Required to Open Salary Account

All employers must submit a list of documents to the bank to create employee salary accounts. Thus, as an employee, you must submit the following documents to your employer:

• A duly filled application form to open a salary account.
• Identity proof
• Address proof
• Aadhaar card
• PAN card
• Voter ID card
• Driving licence
• Passport
• Marriage certificate, if applicable
• Updated bank passbook
• Public Sector Units (PSUs) and/or NREGA Job Card
• An ID card which the Central or State Government must issue
• Appointment letter from the company (as proof of employment with the company)
• Introductory references

Depending on your application and company policies, additional bank documents may be required. Note that company ID cards are not valid. Only government-issued ID proof is accepted for opening a salary account.

Steps to Convert Savings to Salary Account

Converting a savings account into a salary account involves a simple process with no technological complications. Go through the following steps to learn how to convert savings accounts to salary accounts in HDFC or any other bank:

• Visit the nearest bank branch where you have your savings account.
• Navigate to a necessary authority and inform them of the purpose of your visit to the bank.
• The authority member will provide you with an account conversion form. Fill out the form correctly, entering all necessary details, including your bank account number, employer’s name, company’s address, etc.
• Attach all the required documents along with your duly filled conversion form. These include your salary slips, ID proofs, address proofs, proof of employment, etc.
• Go through the terms and conditions of your new account type, and once you are assured, agree with all of those before submitting the form to the bank.

The bank will verify your details and documents, and once authenticated, your savings account will be converted to a salary account with access details provided.

Benefits of Converting Savings to Salary Account

Salary accounts come with a set of benefits for the account holders. Thus, if you convert your savings account into a salary account, you can enjoy the following advantages:

Better Banking Facilities

• Converting your savings account into salary accounts can let you enjoy a wide range of exclusive perks. 
• These include complementary cheque books, online fund transfer facilities, demand drafts, credit cards, insurance facilities, and special loan offers.

Free Savings and Exemptions

• Salary accounts are a great option for reducing banking expenses. 
• These accounts tend to waive service charges, enabling a cost-effective experience, optimising fund utilisation, and reducing fees.

Emergency Cash Access

• One key advantage of having a salary account is that it comes with overdraft facilities. 
• This feature allows account holders to borrow funds during financial emergencies, enabling them to opt for a safety net without separate loan applications. 

Flexible Account Balance

• Salary accounts do not have a minimum balance requirement. 
• This means you can maintain your account even at a zero balance. 
• This flexibility provides you with peace of mind and relieves you from unnecessary financial distress to keep your account active.

Seamless Salary Disbursement

• Having a separate account for salary deposits is always a convenient option for tracking salary disbursement. 
• It also ensures secure transactions and quick fund transfers, simplifying your financial management process.

Special Incentives and Bonus

• Individuals with salary accounts can also access exclusive offers, rewards, discounts, etc. 
• Salary account holders can leverage this benefit of salary accounts to earn a significant chunk of funds annually. 
• However, these programs also tend to vary among different banks.

Tailored Financial Solutions

• Banks or financial institutions understand the importance of meeting their customers’ requirements. 
• Therefore, many banks offer banking solutions specific to industries. 
• These solutions efficiently address employers’ unique needs as salary account holders.

Check For Minimum Balance Requirements

A salary account has no requirement to maintain a minimum balance. Thus, these accounts can be opened and maintained even if you have no balance. Also, no penalties or fines are charged for not keeping the account for a certain amount.

If you have any more questions about the minimum balance of your salary account, consider contacting your employer or the bank itself.

Difference Between Savings And Salary Account

A savings account and a salary account feature some significant differences, which are mentioned in the table below:

To sum it up, 

Converting a savings account to a salary account is a simple process, but it is mainly beneficial for salaried individuals who can make the most of its features. Before proceeding, it is important to research and evaluate your banking requirements, compare benefits, and clarify terms with the bank. This ensures you make an informed decision and fully utilise the advantages of a salary account.

Related Articles:
1. Best Bank for Salary Account
2. Differences Between Salary Account And Savings Account