Back to Archive page

Benefits Of Benefits Of Keeping Salary And Savings Account Separate

6 minsFebruary 07, 2018

“You Salary has been credited to your account”.

By the end of month, most of us eagerly wait for this message.

Gone are the times when you received that salary in cash or by cheque. Back then, employees had to then deposit their earnings in an account and they were sorted. And for every next withdrawal/ deposit had to visit the bank branch.

Technology has simplified our lives and helped in eliminating such menial tasks. Your salary is credited directly into your account, with no effort involved from you. This gave birth to the new category of bank accounts, i.e. the Salary Account.

Salary Account and Savings Account

The salary account is created for employees by their employer for the purpose to credit salary directly into their accounts. Hence, employees can instantly retrieve their salary. With axis salary account employees have hassle-free and instant access to their salaries and a wide range of other banking facilities.

But with easy access to salary, our shopping list is ready way before we receive our pay-cheque. At times, due to this impulsive behaviour, many have little or no savings. In an endeavour to increase your savings, you can set aside at least some money regularly.

As it is rightly said by the legendary, Warren Buffett—‘Don’t save what is left after spending but spend what is left after savings’.

One way is by setting a separate savings account and salary account. Your savings account is where you can park your monthly savings. And you can use your salary account to make all your payments such as utility bills.

Here are some features of a savings bank account:

  • A savings bank account helps you address your liquidity needs, and it is principal to your investment activity.
  • Savings accounts have daily withdrawal limits, and you are required to maintain a minimum cash balance unless it specifically is a zero-balance account.
  • A saving account should be opened by everyone, irrespective of economic strata, what you do for a living, and your residential status. Unlike other banking and financial products, there are almost no restrictions to open a savings bank account. For minors too, a savings bank account can be opened by their parents/guardians.

Salary account

  • Cannot be opened by an individual, your employer has to open a salary account for you.
  • There is no minimum balance requirement.
  • It can help you 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!

Let us look at the benefits of having a separate Salary and Savings Account:

  • Keeps you organised
    • A separate savings and salary account can help to streamline your budget. It becomes easy to track your expenses. For instance, it will be easier for you to track your utility bill payments via one account.
    • If you make all your transactions from one account, at the end of the month it might get difficult to track your money.
    • Hence, a separate account for savings and salary/expense will establish smart money management habits.
  • Helps you to keep a check on your expenses
    • The salary account by nature is created to credit salary by your employer. If you dedicate this salary account only towards meeting all your expenses, then it will be convenient to track them as well.
    • These days salary account by default offer you host of other facilities such as Net Banking, mobile banking, ATM facility, and so on. You can use these facilities to your advantage and earn cash back, discounts, and reward points.
    • More importantly, these facilities will simplify your transactional work.
  • Consciously directs you towards savings
    • With a separate savings account in place, you have a set target for savings each month. If you survive only on one salary account, then the chances of high spending are more. Also, when you have some money in hand there is a tendency to splurge a bit more, resulting in impulse shopping and spending beyond the budget.
    • Creating a Savings Account can result into a conscious saving discipline. Every month if you set a savings amount as a goal and transfer it, you will eventually save more.
  • Savings account will earn interest
    • Merely putting money aside, in salary account, after meeting your expenses and liabilities is unproductive. In times where the inflation is eating into your hard-earned money, you need to move a step forward and invest ––– more importantly, invest wisely! Because ultimately you want the money you earn to achieve your financial goals; isn’t it?
    • A savings account earns interest of around 3% - 6% per annum.Though the interest is low, the saving accounts serves as the first to invest in other wealth creating investment avenues. Know more about savings account interest rates.
    • And here’s where technology really helps out, to open a savings account you no longer need to visit the bank branch in person. Axis Bank’s ASAP, a digital savings account, offers this convenience and comes with exciting benefits.


The Axis ASAP account can be opened anytime, anywhere simply using your PAN and Aadhaar details. Until a few years ago, your proof of address and Permanent Account Number card were enough to open a savings account. But now, as the Government intends to link it to Aadhar to curb money laundering and tax evasion, Aadhaar is almost your primary id.

The most interesting part of the Axis ASAP account is that physical documentation isn’t required. You can literally open an account in just a few minutes, following three simple steps by entering your name, mobile number, Aadhaar, and PAN. A one-time password will be shared on 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.

What’s more?

Axis ASAP offers a host of benefits in addition to zero-balance feature…

  • A virtual debit card with exciting online shopping offers;
  • Do fund transfers;
  • Pay utility bills;
  • You can an invest in fixed deposits and recurring deposits;
  • Earn a higher interest rate on auto-sweep deposits above Rs 10,000;
  • Get detailed account statements
  • Book flight tickets and hotels; and more

What is the eligibility criteria?

To open an Axis ASAP account, you need to be 18+ years of age and a resident of India (with a valid proof of address). Currently, joint holding is not permitted for this account.

Perhaps in this digital age, don’t miss out on some of the obvious advantages of opting for a digital savings bank account like Axis ASAP:

  • Efficient money management
  • Banking on-the-go
  • Avail exciting cash-backs and discounts offers
  • No need to worry about banking hours
  • No need carry wads of cash
  • Can link to your investment avenues
  • Comes handy in times of emergency
  • Saves time and energy
  • No monthly maintenance fee
  • Less paper to handle
  • Better control over finances

To conclude…

Remember, opening a separate salary and savings bank account is the first step towards the journey of wealth creation. It will imbibe holistic money management skills.

There are a variety of saving bank accounts today, with frills and no-frills, with distinguishing features catering to your need. A regular savings account, salary account, senior citizen savings account, youth savings account, zero balance savings account, linked savings account are some of the types of savings bank accounts.

Axis Bank, for instance, offers different account types to serve the needs of different customers. For instance, Basic Savings Account, EasyAccess Savings Account, Women’s Savings Account, Senior Privilege Savings Account, Future Stars Savings Account, and so on. (For more details visit, click here for Savings Account ).

To have long-term financial wellbeing, manage your hard-earned money efficiently with financial discipline and invest wisely.

Happy Saving!

Happy Banking!

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.