You may be wondering How to Convert Salary Account to Savings Account, because who wants to have a plethora of bank accounts right?
Converting a salary account to a savings account can be an easy-to-do job if you follow the correct procedure.
A salary account works best for professionals, while a savings account is suitable for all. Account conversion is sometimes essential due to a switch in the working scenario. The Bank converts a salary account to a savings account if you do not receive an income continuously for the past three months. Similarly, You can convert a savings account to a salary account if the company agrees. The financial institutions ease the work for you and make the required changes in no time.
When you start a new job, the employer gives you a salary account in a collaborated bank. However, when you switch from an old job to a new one, your old salary account is useless if the organization disapproves. This is where the question of “how to convert salary account to savings account” comes in. Hence, it would be best to ask for approval beforehand. If the employer rebukes the Bank, you should ask the Bank to convert the account. The Bank will help you convert your salary account to a savings account.
Whether you require another savings account or not is entirely your choice.
The organization goes for a salary account in a bank they have a tie-up with. If the employer does not hold a salary account in the same bank, there is no need for another savings account. You can convert the existing account to a savings account. You will now have a savings account and a new salary account. You will receive monthly payments in one account and can make various mutual fund or SIP investments or pay back your loans through the existing account. Switching the old account and a new salary account will help maintain a balance in your personal and professional life.
Switching your salary account to a regular savings account may require a minimum balance. It is because savings accounts have a minimum balance requirement. The Bank may levy penalties or fees if you do not maintain the required limit. However, the limit is sometimes higher than expected and varies from one bank to another. Thus, you should check it beforehand to avoid the unbearable expenses.
Looking for a branch location is another primary requirement in salary account conversion.
Present-day banking has a digital solution to all your needs. You can avail the benefits from the comfort of your home. However, some tasks can only be done at the bank premises. It requires face-to-face interaction and cannot be completed online. Hence, looking for the branch location before making the conversion is essential. You should find a bank near your workplace or home to make it convenient.
You should also look for the branch and ATM density before converting the salary account with a particular bank to a savings account.
Branch and ATM density shows the accessibility to ATMs and the Bank’s branches. The Bank must have a widespread ATM and branch network to easy accessibility and faster services.
Don’t forget to change your communication address!
While opening a salary account, we often enter our workplace address for any bank-related communications. However, converting the salary account to a savings account requires a change. If you fail to do so, all your information like credit/debit card bills and pins, an account password, chequebooks, etc., will be sent to your ex-office.
You can easily convert your salary account to a savings account. The primary purpose of a salary account is to credit the employee’s salary. However, if there are no salary credits for three months continuously, the Bank will automatically convert it to a savings account. The account will now work upon all the rules and regulations of a savings account.
In addition to knowing how to convert salary account to savings account, you must also know that the salary account to savings account conversion is not a burdensome process. However, certain essentials need to be fulfilled. Different banks have different norms and conditions for the conversion process. Hence, you should get a detailed view of all its conditions. Before moving forward with a financial institution, checking the branch locations and minimum balance requirement is a must. Also, never forget to change your communication address. Committing such a minor mistake can lead to significant problems. Converting a salary account to a savings account will be easy if you go step by step. Checking the mentioned points will help you receive precise and faster results.
You can convert your existing savings account to a salary account. If the organization you work with has a tie-up with the Bank where you hold a savings account, the Bank can help you with it. It will convert the savings account to a salary account at the employer’s request.
A salary account automatically converts to a savings account if it continuously does not receive salaries for three months.
You can do it by contacting the Bank’s relationship manager or by visiting the Bank’s branch. Also, you can send a letter or mail asking for the change. The Bank will help you with the same.
Leaving your job will automatically convert your salary account to a savings account. The Bank converts the salary account to a savings account if there are no credits for three months continuously. However, if your new job has a tie-up with the same Bank, you can continue with the initial account. The Bank needs all the information about the new position for the same.
