Differentiating your banking accounts: Salary account and Savings account
Managing finances is a core part of living a fulfilling life. Some even say it’s a survival skill which gets further enhanced as you progress with investing and allocating funds at the right places.
Employed, not employed, looking for a job etc., savings and salary accounts are an essential part of managing your finances.
Let’s understand a little more about savings and salary accounts:
1. Requirement
Unlike savings accounts which you open for yourself, or which come with an interest rate which varies or investment options, salary account are opened by your employers when their employees are hired.
2. Convertibility
Salary accounts essentially are converted to normal savings accounts in instances where there is no deposit or transfers for a certain period. However, savings accounts are chosen of your own accord helping you manage your finances better.
3.
Better Rates
Saving accounts carry interest rates which differ from banks to banks in contrast with salary accounts which normally have a standard rate.
4. Balance
Savings accounts with better interest rates or higher interest rates and features require you to maintain a minimum balance. Salary accounts normally don’t need a minimum balance.
Now that you are aware about the key differences about Savings and salary accounts. It’s a good step to carry out some research about banks which give you flexibility and options to grow your funds.
Do keep an eye out for campaigns, like right now if you set up a salary account with Emirates NBD you can win a reward.
Look out for any scams or frauds and set up your savings accounts where you feel at ease.