Both salary and savings account may offer the same benefits. However, they do have some differences that can be identified by comparing some of their features.
Here are a few distinguishing features:
Savings bank account
It may have daily withdrawal limits.
Customers are required to maintain a minimum cash balance, unless it is a zero balance account.
A savings account can be opened by anyone, no matter their economic strata, what they do for a living, and their residential status. Unlike other banking/financial products, they come with fewer restrictions. Even minors can have a savings bank account opened by their parents or guardians.
Employers open a salary account for their employees. Individuals can also open a salary account in their preferred bank (If the bank has a tie up with the individual’s employer).
There is no minimum balance requirement.
It comes with higher transactional limits. For instance, IDFC FIRST Bank’s Platinum Plus and Classic Plus salary accounts offers a daily POS limit of ₹6 lakhs and cash limit of ₹2 lakhs.
