Kamala, who is employed as Rita’s household help, took the day off from work to open a savings account. However, the banking process could not be completed that day and Kamala felt helpless. Rita wanted to help her and decided to use the bank’s virtual application process. This way, Kamala was able to open her own savings account and Rita decided to transfer her salary directly to it.
With banking technology at Rita’s fingertips, Kamala can now save more.
The salary account, as you may know, is created for employees by their employer to credit a monthly salary directly into their accounts. This enables employees to instantly receive and utilize their salary.
Here are some features of a Salary Account:
- There is no minimum balance requirement.
- It can help them pay utility bills, transfer money, withdraw, and so on.
- Plus, most banks offer debit and credit cards which can be used while shopping as well as earn reward points, get discounts, cash-backs, and much more!
With digitisation on the rise, having a digital savings account which is hassle-free has become essential, no matter what you do for a living or who you are.
Hence, opening a salary account is a prudent and safe way through which your household help can handle his/her personal finances. An independent salary account can help them streamline their budget.
What type of salary account can you open for your household help?
You can now open a zero-balance saving account and setting it up is a breeze as well. All you need is Axis Mobile or Internet Banking.
For instance, Axis ASAP Instant Savings Bank Account offers this convenience and comes with host of exciting benefits. You can open the Axis ASAP account anytime, anywhere simply using their PAN and Aadhaar details.
With Axis Salary Account employees have hassle-free and instant access to their salaries and a wide range of other banking facilities. Additionally, it makes it easy for you to simply online-transfer their salary every month.
How to open an Axis ASAP account for your household help...
The most interesting part of the Axis ASAP account is that physical documentation isn’t required. You can literally open an account in few minutes, following three simple steps by entering your employees’ name, mobile number, Aadhaar, and PAN. A one-time password will be sent to your registered mobile number and a zero-balance savings account is opened with a number assigned.
It is convenient and offers a stress-free banking experience.
Axis ASAP offers a host of benefits in addition to the ‘zero-balance’ feature…
- Special FD interest rates when account balance exceeds Rs 10,000
- Get your bank account number instantly
- Link your account to a branch of your choice
- Virtual debit card with exciting online shopping offers
- Pay utility bill payments
- Book flight tickets and hotels
- Earn Axis eDGE reward points
- Benefit from Axis Internet and Mobile Banking
- Receive detailed account statements
Are there some eligibility criteria?
Yes, there is:
- 18+ years of age
- A resident of India
- Has a valid PAN and Aadhaar number
- Has a mobile number linked to your Aadhaar
- Provide the FATCA (Foreign Account Tax Compliance Act) declaration
The FATCA declaration is required as per current RBI guidelines. The purpose of this declaration is to counter tax evasion by US taxpayers by requiring non-US financial institutions to report information on their US accountholders to the Internal Revenue Service (IRS) of the United States.
With these host of benefits your household employees can also experience the peace of digital banking.
Further, let’s see how you can transfer their salary.
Here are the options:
- Simple fund transfer through NEFT or IMPS;
- Via a payment gateway using your debit card;
- Cheque; or
Rs 1 lakh is the maximum balance amount permitted in this account, at any given point of time. The overall cumulative in the account cannot exceed Rs 2 lakh, and if does exceed, comply with all the formalities of a ‘full KYC account’ through fingerprint verification at your nearest Axis Bank Branch within a year.
Once you convert Axis ASAP account to a full KYC account, transaction limits will stand increased:
|Current(Rs)||After KYC completion|
|Maximum balance allowed in the account||100,00||Unlimited|
|Sum of all credits allowed in the account in one year||200,00||Unlimited|
What about the payments?
Once your full KYC formalities are done, the account holder can avail of the complimentary cheque book facility on request. It facilitates to make payments via a cheque leaf as in case of other KYC compliant savings accounts.
The Axis ASAP account is linked to Encash 24 Deposit Account, where automatic transfers to fixed deposits (also known as term deposits) will be done. With this facility, the balance in savings account beyond Rs 10,000/- will be transferred to fixed/term deposits which will earn a greater rate of interest.
So, say balance of Rs 12,000 in the Axis ASAP account. An amount of Rs 2,000 will automatically become a fixed deposit for one year, earning a better interest rate.
The units withdrawn (in multiples of Rs 500/-) from Encash 24 Deposit Account to meet payments from Axis ASAP account will be automatic. And, of course the units withdrawn will cease to earn the interest applicable with the Encash 24 Deposit facility.
So, the Axis ASAP account provides the best of both, savings and investing.
Likewise you can also opt for other salary account facilities offered by Axis Bank such as Easy Access Salary Account, Prime Salary Account and Priority Salary Account, depending on what suits you and them the best.
Maybe by opening a salary account, you are the reason that many other possibilities open up in their lives. Like Rita, you can also take this up as your moral responsibility and lead household employees toward their journey of financial freedom.
Encourage your any domestic helper to stay on-track with their personal finances. Help them and uplift them with the technological exposure you have. Remember, at times, it is their support which enables us to manage our work and personal life well. Because in the end, it is all about giving back the abundance and goodness you receive.
Disclaimer: This article has been authored by PersonalFN, a Mumbai based Financial Planning and Mutual Fund research firm known for offering unbiased and honest opinion on investing. Axis bank doesn't influence any views of the author in any way. Axis Bank & PersonalFN shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.