Can savings account be used as a salary aaccount, and you’re looking for an answer to your question. I have the answer right here and not only that, i will explain the difference between the two and their benefits.
You recently got a job in a company and you are trying to figure out if you can use your savings account to recieve your monthly salary. Even though the two accounts are savings account, but they have their differences.
Can savings account be used as a salary account
First let’s focus on this question, can a savings account be used as a Salary account and my answer to that is a big YES!!! You can receive your salary into your savings account but if the company that you’re working for approves it.
Most companies list out the banks that their employees will use as their salary account, so in the case that the listed bank happens to be a bank that you’ve an account with(savings), you can choose to use it as your salary account. But with the diffrence in the two accounts, that is the savings and the salary account, i will recommend that you should open an account for your monthly payment.
Most employees like myself prefer to have a salary account to using my savings account to recieve my monthly payment. And the reasons are stated below
- You can open a salary account without any cash
- You can withdraw all the whole payment paid to your account without having any minimum balance left in your account
- There’s no tax levied upon a salary account unless it is from your employer
On the hand, there are some benefits of having or using a savings account, it includes;
- There’s no interest rate on a salary account while a savings account do have an interest rate
- You can use your savings account for a Certificate of deposit whilst you can’t do such on a s.account
In as much as the reasons stated above, if you feel you want to use your savings account to recieve your monthly payment, fine you can do. And if you feel that you want to open a salary account to recieve your monthly payment, it is also good and you can transfer the money to your savings account in order to get interest from it.
Please note that both the savings and salary account have a credit and debit card, you can receive or transfer money from the account, and also use them for internet or Mobile banking .
To open a salary account, some of the requirements(differs from bank) i know includes;
- One (1) passport photograph of the authorised signatory (stating the name on the reverse side).
- A letter of introduction from your company
- Valid ID card (International Passport, Voters Card, Drivers Licence, National ID Card, military or Police ID Card)
- Duly completed account opening form
- Company ID
It all depends on what you want, but right now i hope that i’ve answered your question which is can savings account be used as a salary account. Once again the answer is yes and make sure it doesn’t go against the rule of the company that you’re working for.