Question: Is Current Account And Salary Account Same?

Which type of account is salary?

By definition, a Salary Account is a type of Savings Account, in which the employer of the account holder deposits a fixed amount of money as ‘salary’ every month.

It is an expense account and is a nominal account..

What is the meaning of current account?

A current account is a personal bank account which you can take money out of at any time using your cheque book or cash card. … A country’s current account is the difference in value between its exports and imports over a particular period of time.

Can we convert saving account to current account?

It is not possible to convert your savings account to a current account as both the accounts are different in nature and also have distinct features and benefits. While a saving account is meant for personal use and thus can be opened with basic documents for KYC.

Is salary an expense?

Salaries expense is the fixed pay earned by employees. The expense represents the cost of non-hourly labor for a business. … Salaries expense – accounting department. Salaries expense – engineering department.

Which bank is best for salary account?

Top 5 Salary Accounts in India, 2020Kotak Platina Salary Account.SBI Corporate Salary Package.HDFC Bank Classic Salary Account.Citibank Suvidha Salary Account.Axis Bank Prime Salary Account.

How much money we can keep in saving account?

Though there’s no limit to how much you can keep in a savings account, you should know the rules surrounding large deposits to savings accounts. When it comes to making deposits to a bank account, $10,000 is the magic number.

Who can open current account?

Who can get a current account?Over 16 – you need to be over 16 to open a current account, although for some banks the minimum age is 18. … Minimum monthly payment – some banks might ask you to pay a minimum amount into your account every month.More items…

What is the limit of current account?

Monthly Average Balance (MAB) Requirement on Basic Current Account of Different BanksBankMonthly Average Balance (MAB)Free deposit limitsICICI BankRs.25,00012 times the MABAxis BankRs.10,000Up to Rs.2 lakhsIndusInd BankRs.10,000Up to Rs.2 lakhsCanara BankRs.1 lakh (quarterly)Up to Rs.5 lakhs per day3 more rows

Which type of account is current account?

The current account includes deposits, withdrawals, and contra transactions. Such accounts are also called the Demand Deposit Account. A Current account can be opened in most of the commercial banks. A current account being a zero-account, is generally associated with huge transactions on a regular basis.

Is salary account is a real account?

Salary account is an expense account and is a nominal account.

What is the benefit of current account?

There are several benefits of operating a current account for business owners: Any time withdrawal facility to meet the cash needs of the business. A current account holder can deposit cash or cheques at different bank branches which makes it extremely convenient to collect payments from small customers.

Is GST mandatory for current account?

Bank account details can be added later vide amendment of non-core field. Therefore, Current Account is not compulsory for GST Registration. And, you can use either saving account or Current account to register for GST in India.

Does current account have ATM card?

What is current account? Any withdrawals from your account can be made either with an ATM card, debit card, and even the aforementioned cheque. … Many banks offer attractive interest rates for current accounts, but only with very high levels of deposits (usually RM100,000 and above).

Is salary account a savings account or current account?

Difference between a Savings Account and a Current AccountCurrent AccountSavings AccountRequired BalanceHigh minimum required BalanceLow minimum required balanceNormally used forUsed for paying bills and business transactionsUsed for salary accountsSuitable forBusiness PeopleIndividuals3 more rows

Is it safe to keep money in salary account?

The answer is : YES. Having more than 1 account is always advisable. … If you keep all your money in Salary account, which is having a Debit card and Internet banking facility, there is very high chance of spending more money. So to keep unnecessary expenses in check, you should have more than 1 account.