What is the difference between an instant savings account and a salary account?

The first bank account we generally open is an instant savings account. Whether it for a minor, joint account, etc. there are variations to them. But each of them has minor differences concerning features. When you begin your career and seek employment, the companies offer a unique account called a salary account. They are different from the instant savings account. Most hold both the accounts. So, what makes them different from each other? Following are the comparisons –

Purpose of the account

Anyone can open the account irrespective of gender, caste, age, or religion. Banks also have provisions for special minor, senior citizens, family, and joint accounts. These accounts get opened in more than one bank for parking hard-earned funds or operate financial transactions. The salary account, on the other hand, is only meant for crediting salaries. Corporates and businesses open them for their employees to credit income, bonuses, and other remunerations.

Opening of account

Anyone who wants to open an easy access savings account can do so at ay bank of their choice. Check out factors like proximity, interest rates offered, minimum balance requirements, and so forth. Such accounts are easier to open online. However, under a salary account, you do not have the choice to select the bank. The organisation ties up with a specific bank and opens an account for all employees there. The account gets opened for the sole purpose of depositing income.


The moment you open an instant online savings account, banks ask you for detailed documentation upload. They verify them personally and based on them, and they offer customised debit card and chequebook for transaction purpose. The ATM PIN and net banking information get sent via email. For salary accounts, banks conduct quick documentation. Usually, they offer an instant kit, which includes chequebook, ATM, as well as a debit card along with the PIN, net banking details, etc. You could also ask for personalised debit card and chequebook once the salary gets credited.

Balance maintenance

Banks always need you to maintain a minimum balance in the account. It is one of the key factors for keeping instant savings account functioning. This minimum amount differs from bank to bank. On the other hand, there is no need to maintain any balance in the salary account. Precisely why, salary accounts are also called zero-balance savings account. You can withdraw the entire income from the account. But the withdrawal transaction gets conducted according to the prescribed daily withdrawal limit by the bank. This is the most crucial difference between the two accounts.

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