Money acts as a medium of exchange; sometimes it is used as a standard of deferred payment or a unit of account. Bank is one of the places where we all can deposit our money safely. There are several types of accounts which banks offer to its customers. One such account is Salary Account.
What is a Salary Account?
A Salary account is a kind of account opened by the employer on behalf of an employee, to credit the employee's salary on a monthly basis. Almost all banks in India has facilities to open a salary account.
Features of Salary Account
The following are the features of Salary Account.
• It is an account opened for crediting salary of the employee.
• Employer will open the account on behalf of the employee to credit the salary amount.
• One need not maintain any minimum balance in a salary account.
• If the salary is not credited for three consecutive months, then the salary account will be converted into savings account.
• No interest will be paid for the salary account.
The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an in-principle approval from the Reserve Bank of India to set up a bank in the private sector, as a part of RBI's liberalization of the Indian Banking Industry in 1994. It was incorporated in August 1994 in the name of HDFC Bank Limited. Its registered office is in Mumbai, India. The bank commenced operations as a Scheduled Commercial Bank in January 1995.
Features and Benefits of Salary Account in HDFC Bank
The following are the features and benefits of salary account in HDFC Bank.
• It is a Zero Balance savings account.
• ATM cash withdrawal limit is Rs 50,000 per day
• Point of Service usage limit is Rs 75,000 per day
• The account holder will get free lifetime Debit card (applicable for NRE only)
• Five free transactions at Non-HDFC Bank ATMs in India per month
• The account holder can use the bank branch and ATM facilities anywhere across the country
• The account holder is eligible for free Power of Attorney (POA) card and chequebook.
Eligibility Criteria to Open a Salary Account
• An individual must be employed with a corporate that has a salary account relationship with HDFC Bank.
• He/She should not hold any other bank account with HDFC Bank.
Is it Possible To Deposit Money In Salary Account Of HDFC Bank?
Yes, you can deposit money in your salary account maintained with the HDFC Bank.
You can use the account as a regular account for typical banking transactions. The account can also be used to withdraw the money either from the bank's branches or ATM's or using net banking services.
Is employment confirmation mandatory for opening a Salary Account in HDFC Bank?
Yes, employment confirmation is mandatory to ensure that you are an employee of the company.
How to close the Salary Account in HDFC Bank?
If in case you have decided to quit from the current job then it is better to close the respective salary account because if the salary is not credited for three consecutive months, then the salary account will be converted into a savings account. All the rules and regulations which apply to the savings account will be followed for the non-active salary account.
Steps to Close Salary Account in HDFC Bank
The following are the steps to close the salary account in an HDFC Bank
• You can visit any of the HDFC Bank Branch and ask for an Account Closure Form.
• If you have a Debit Card and Cheque Book with you, it's better to take them along with you, or you can declare them as destroyed on the account closure form.
• Don't forget to mention your recent mobile number and take the acknowledgment of your request stamped received with the date from the bank as if some problem arises the bank can contact you or otherwise you have a proof of submitting the closure request for any of the problems occurs in future.