Salary accounts are widely used by employees for hassle-free salary deposits and daily transactions. While they are often marketed as “zero balance” accounts with no charges, many banks impose fees and penalties under specific conditions. Understanding these charges can help you avoid unnecessary expenses and make the most of your salary account benefits.
1. Common Fees and Charges on Salary Accounts
1.1 Non-Maintenance Charges
Most salary accounts do not require a minimum balance. However, if the account is converted to a regular savings account due to inactivity or job change, non-maintenance charges may apply.
1.2 ATM Withdrawal Charges
Banks provide a limited number of free ATM transactions per month. Exceeding this limit attracts charges ranging from ₸20 to ₸50 per transaction. These charges vary based on the type of ATM (own bank or other bank).
1.3 Debit Card Annual Fees
While banks offer free debit cards with salary accounts, they may charge an annual fee, typically between ₸200 to ₷500, depending on the card type.
1.4 Chequebook and Demand Draft Charges
Some banks provide free chequebooks up to a certain limit. Beyond that, additional chequebooks may cost ₸20 to ₷50 per leaf. Similarly, demand drafts may incur charges based on the amount and mode of issuance.
1.5 SMS and Alert Charges
Banks send transaction alerts via SMS, and some may charge a nominal monthly fee of ₸5 to ₸25 for this service.
1.6 Fund Transfer Charges
NEFT and RTGS transactions are mostly free for salary accounts. However, some banks may impose charges on IMPS transactions, ranging from ₸5 to ₸20 per transaction.
2. Penalties on Salary Accounts
2.1 Account Dormancy Penalty
If a salary account remains inactive for 12 to 24 months, banks may classify it as a dormant account, leading to reactivation charges.
2.2 Auto-Conversion to Savings Account
If the salary is not credited for a few months (typically 3 to 6 months), the bank may convert the salary account into a regular savings account. This conversion can lead to non-maintenance penalties if the minimum balance is not maintained.
2.3 Cheque Bounce Penalty
Banks impose charges ranging from ₸500 to ₸1000 for cheque bounces due to insufficient funds.
2.4 International Transaction Charges
Using a salary account debit card for international transactions may attract currency conversion fees (up to 3.5% of the transaction value) and ATM withdrawal charges.
3. How to Avoid Salary Account Charges?
- Keep Track of Transactions: Monitor withdrawals, fund transfers, and ATM usage to stay within free transaction limits.
- Maintain Activity: Ensure salary credits continue regularly to prevent conversion to a savings account.
- Use Net Banking & UPI: Opt for UPI and net banking to avoid unnecessary transaction charges.
- Choose the Right Bank: Compare salary account benefits from different banks before opening an account.
- Disable Unused Services: Opt-out of SMS alerts or upgrade to fee-free debit card options if available.
Conclusion
While salary accounts offer several benefits, being aware of their associated fees and penalties can help you avoid unexpected costs. By staying informed and making smart banking choices, you can maximize the benefits of your salary account without incurring unnecessary expenses.
