Things To Do After Opening A Salary Account

Getting the first job is a milestone achieved. Nowadays, most employers insist on a bank account with a particular bank where the employer would credit the salary. For many millennials, it is one of the many ‘to do HR formalities’. Experts, however, look at it as an important step in the journey towards financial freedom. A savings bank account is an enabler and, if used wisely, can give you a head-start. Here are some tips you can use.

Get the facts right

This may sound really stupid- but do check if your name and address is captured right by the bank. If there are any discrepancies, bring it to the notice of the bank. Corrections should not be postponed.

Do check with the bank if your mobile number and email id are recorded right. Since you will be getting transaction alerts and ‘one-time passwords’ sent by bank on SMS and email, you cannot afford to get them wrong. If the bank has registered your corporate email id in their records, do change it to your personal email id. This will ensure that you will keep getting bank’s communication on email even if your corporate email id changes or you quit the company.

Know the rules of game

Each bank will have its own set of rules about your salary account. Though these accounts generally come with zero balance norms, there may be charges if you exceed a certain number of transactions. After a certain number of free transactions at the ATM and branch, the banks typically levy charges on cash transactions. Do check the charges associated with bank drafts and online payments, too. These may come handy if you intend to make payments.

With each new account opened the bank shares the booklet containing important rules and regulations, as per the directives of Banking Codes and Standards Board of India. Preserve this booklet as it will enlist all charges and limits that come with your salary account.

Free demat account

Many banks offer a free demat account and a free investment account along with salary account. It is an industry-wide practice to offer a free demat account for the first year. After the first year, the demat account holder is expected to pay the annual fee in the range of Rs 400 to Rs 500. Even most stock brokers do not charge you in the first year for the demat account. So, there is nothing great about it.

Demat account is essential if you plan to invest in shares. If you plan to restrict yourself to mutual funds and fixed deposits, there is no need of a demat account. You mays simply refuse to open a free demat account. You can open it anytime you want in future.