Salary Account: 10 Benefits of a Salary Account You Probably Didn't Know! Employed People Should Know These Benefits..
A salary account isn't just for salary credit. It offers many features whose benefits are often unknown. In 2025, these benefits strengthen the financial security and savings of employed individuals. So, let's explore 10 major benefits of a salary account.
A salary account isn't just for salary credit.
People often think that a salary account is simply a means of salary credit. However, this thinking is wrong. In reality, a salary account is a treasure trove of many hidden benefits. Although banks are offering benefits like zero balance, high interest, and loan rebates on salary accounts in 2025, most people don't take advantage of these. So, if you're employed, a salary account makes banking easier and cheaper. Yes, let's explore 10 major benefits of a salary account that strengthen your financial situation.
1- Zero Balance and No Maintenance Charges
Salary accounts are the most popular these days because they offer a zero balance. This means there are no maintenance charges or penalties even if the account has a zero balance. However, some banks often require a minimum balance of ₹3,000 to ₹10,000 in a regular savings account; otherwise, a penalty is levied. Whereas, in a salary account, your money is always free.
2- High Interest Rates
Salary accounts offer high interest rates, but compared to regular savings accounts, they offer 3-7% interest, which is quite attractive. For example, IDFC First Bank offers up to 7% interest on salary accounts. Keep in mind that interest only begins to accrue when the monthly salary is credited to the account. This not only keeps your money safe but also generates higher returns.
3-Free ATM Withdrawals
Salary accounts offer the significant benefit of free ATM withdrawals. Unlimited free transactions can be made from your bank's ATM, while ATMs from other banks typically offer around 5-10 free transactions. This eliminates extra charges for frequent withdrawals and saves money. This feature is especially beneficial for those who withdraw cash regularly.
4-Overdraft Facility
The overdraft facility in a salary account allows you to access funds immediately in case of an emergency. After salary is credited to the account, an overdraft of up to 2-3 months' salary is available, with an interest rate of approximately 9-11%. This facility is available immediately without any additional documentation and works like a small loan, making it easier to access funds in case of sudden financial needs.
5-Loan at Low Interest
Customers with salary accounts benefit from loans at lower interest rates. This includes a discount of 0.25-0.5% on home and personal loans, as well as waived processing fees. Banks prioritize loan processing for salary account holders, making loan access quick and easy. This feature is beneficial for those seeking a loan at a lower interest rate for major expenses or investments.
6-Free Insurance Cover
With a salary account, you also benefit from free insurance coverage. Personal accident insurance of approximately ₹2 to ₹10 lakh can be availed free of charge. Some banks also offer life insurance coverage as an additional benefit. Furthermore, salary account holders receive special bonus coverage and extra security features.
7-Exclusive Discounts
Salary account holders also benefit from exclusive discounts. Discounts of up to 10-20% are available on shopping, travel, and dining. Cashback offers are also available on e-commerce sites like Amazon and Flipkart. Benefits like airport lounge access can also be availed, making the travel experience even more comfortable. All these benefits can provide account holders with extra income and a premium experience.
8-Free Checkbook and Debit Card
With a salary account, you can also get free checkbooks and debit cards. Account holders can avail unlimited free checkbooks. Additionally, you can get a free premium Platinum debit card, which offers reward points on purchases and transactions, doubling the benefits of every transaction.
9-Digital Banking Benefits
Digital banking offers many benefits for your salary account. You can make free fund transfers and bill payments through iMobile or the YONO app. Additionally, you receive free SMS alerts for every transaction, providing instant information about all your account activities and allowing you to maintain complete control over your finances.
10-Free Demand Draft and NEFT/RTGS
Salary accounts also offer free demand draft (DD) and NEFT/RTGS services. This makes sending money easy and cost-effective. DDs are free, while NEFT and RTGS transactions are also free, allowing you to easily transact without additional costs.
Must-Take Advantage of a Salary Account
These 10 benefits of a salary account—zero balance, high interest, free ATM, overdraft, low loan interest, insurance, discounts, free checkbook, digital facilities, and free transfers—strengthen your financial situation. Employed individuals should definitely take advantage of this.
Disclaimer: This content has been sourced and edited from Zee Business. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.
