Difference between Salary Account and Current Account in Bank
Key difference: A salary account is a bank account designed and offered mainly to salaried persons. A current account, on the other hand, is an account which is designed to suit the needs of businessman, firms, companies, public enterprises, etc. Each one has its own benefits and advantages.
Essentially in today’s world, everyone has a bank account. A bank account makes it easy for one to store and use their money, while reducing the risks associated with keeping cash in hand or at home. Bank accounts provide people with a safer place to store money, with the added benefit of earning interest on the money stored in the account. Accounts also make it easier for the person to write out checks, send automatic payments, etc.
There are various different accounts that are available at the local bank that allows users to save their money. These accounts determine what the bank can do with the money in the account and the benefits that customer’s receive. These bank accounts include Savings Account, Salary Account, Checking Account, Money Market Account, etc. Salary Account and Current Account are two different types of account where people can deposit money. These accounts provide different benefits to a customer.
A salary account is as its name suggests. It is a bank account designed and offered mainly to salaried persons. In most instances, the salary of the person is directly deposited in their salary account at the bank. In some other instances, the salary may be given in the form of a check (cheque), which can then be deposited in the account.
The salary accounts are aimed at helping a person manage their salary. It is especially designed for people who live hand to mouth; hence in most instances, a salary account allows a minimum balance of zero. This means that the person can withdraw all of the money from their salary account and not have to pay a penalty.
The benefits of a salary account may differ from bank to bank, or even in an individual bank which may provide different kinds of salary accounts. Some common facilities associated with a salary account may include Net Banking, Phone Banking, Demat Services, Fixed Deposits, Debit Cards, Online Funds Transfer, Utility Bill Payments, Remittance Facilities, Loan Facilities, etc.
A current account, on the other hand, is an account which is designed to suit the needs of businessman, firms, companies, public enterprises, etc. The advantage of a current account is that it allows for multiple numbers of transactions from the account. In fact, most banks offer unlimited amount of transactions. This is ideal for businesses, as they usually have various transactions that they must fulfill within a limited period of time, such as bills, payment for goods, payment of salaries, etc.
Like, all bank accounts, the actual benefits available to customers may differ from bank to bank. However, some benefits may include higher withdrawal limit, Corporate Net Banking, Online Funds Transfer, Utility Bill Payments, Remittance Facilities, Corporate Loan Facilities, Periodical e-mail statements, unlimited cheques, anywhere deposit and withdrawal, etc. However, one disadvantage of a current account is that it usually has a higher minimum balance. This is generally to cover the high number of transactions. Also, in most instances no interest is paid by the bank on the balance money stored in the current account.
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