Having decided to leave the corporate world for good, Nazia is planning to start her own business. This means working on credit while managing existing savings. As a corporate employee,, Nazia currently has a salary account. Now that she will be switching gears career-wise, there was a bit of confusion over the various types of accounts, particularly salary and savings accounts. She is looking on the internet to see what will happen to her existing salary account that gave her the biggest comfort – no minimum balance.

Let us talk more about salary and savings accounts – specifically the differences and benefits.

Understanding Savings and Salary Accounts

A salary account is opened by the bank at the request of a company for an employee to credit the salary. This account can be opened by an individual with the bank where the company has a relationship for such accounts. It is important to note that only an employed individual of that particular company is eligible to open this account with the bank. Simply put, to open a salary account, an individual must submit proof of employment along with other mandatory documents. A salary account comes with a host of benefits and offers that the account holder can enjoy.

A savings account, on the other hand, can be opened by any individual completing the necessary KYC. This account is not dependent on the employment status of the individual as there is no organization tie-up. The main purpose of a savings account is to provide individuals an avenue to save a portion of money every month and to fulfill their banking requirements. Banks offer a range of facilities and benefits based on the type of savings account held.

While both accounts have various benefits, a salary account does not mandate a minimum balance and the account holder can enjoy the benefits as long as there is a regular credit of salary. The account gets automatically converted into regular savings account if the salary is not credited for three consecutive months. Since Nazia has left her salaried job, the account will be converted into a regular savings account after 3 months of no salary credit.

To better understand the differences between a savings account and a salary account, let us refer to RBL Bank’s product offerings.

RBL Bank offers a range of savings accounts and an exclusive ‘Executive Salary Account’ that helps simplify payment and banking needs.

Below table provides a brief summary of the characteristics of these two account types.

Account Type

Salary account

Savings account


The employer creates a salary account at the commencement of the job for crediting salary

A savings account simplifies the individual’s banking needs with a range of features


Individual employed with a corporate entity that has a salary account relationship with a Bank.

Resident Individual (sole or joint account), Foreign national and Hindu undivided family (HUF)

Minimum balance

No minimum balance

Based on the type of savings account

Interest rate

Same as savings account

Higher interest rates^ at RBL Bank


  1. Free ATM transaction
  2. Cash withdrawal
  3. Debit card
  4. Complimentary checkbook
  5. Online banking solution
  6. Demand draft facility
  7. Fixed deposits
  8. SMS and email alerts
  9. e-statements
  10. Safe deposit lockers
  11. Lending services
  1. Free ATM transaction
  2. Wealth management solutions
  3. Cash withdrawal
  4. Debit card
  5. Complimentary checkbook
  6. Online banking solution
  7. Demand draft facility
  8. Fixed deposits
  9. SMS and email alerts
  10. e-statements
  11. Safe deposit lockers
  12. Lending services

Key Considerations

It is important to understand that a salary account is a type of savings account with one key aforementioned difference – no minimum balance mandate (presuming regular salary credit). Let’s consider Nazia’s situation. As there is a change in employment status, the account is likely to be converted into a regular savings account in three months as there is no regular salary credit. When this happens, banks usually levy a charge for the non-maintenance of the minimum balance. However, RBL Bank waives the average balance requirement for Digital Savings Account if the customer has an SIP or a recurring deposit worth Rs.2,000 or more. Nazia can enjoy the benefits of the account while saving monthly.

When a salaried individual is switching employment, it is necessary to check if the same account can be used in their new place of work. If the new company has tied up with another bank, this existing account will be converted into a regular savings account.

RBL Bank Savings Accounts

Every individual has different financial needs and requires a savings account that suits their lifestyle. Irrespective of whether you are thinking of closing your previous salary account, having a savings account is a good financial practice. RBL Bank understands this and offers a range of savings accounts that comes with various benefits such as higher interest rate, virtual debit cards, online fund transfer facilities, anytime banking, and more.

Here is a list of savings accounts offered by RBL Bank.

In this day and age, where digital banking is taking over the world, RBL Bank understands the need for contactless banking. Now anyone can open a digital savings account in five minutes through video KYC and RBL MoBank App. To complete KYC, the customer will need to submit one of the identification documents –

  • Passport
  • Valid driving license
  • PAN card
  • Voter’s ID
  • Bank account passbook active accounts with entries no more than 3 months old

To know more about RBL Bank savings accounts, Please click here.

^To know the current interest rate on our Savings Accounts, click here