When you look at how business banking services could benefit your company, you may have come across the concept of a corporate salary account. A corporate salary account is a convenient way to transfer the salary to your employees monthly. As an employer, you can open a salary account for all your employees in a private bank in India. There are several benefits to doing so, and here are some of them:
1. Zero balance account
Corporate salary accounts tend to be zero balance accounts, meaning there is no need to maintain a minimum balance. This is one of the biggest benefits of a salary account. This is offered as a business banking perk because the bank is sure that the employee’s salary will get credited monthly into the corporate salary account. Zero-balance corporate salary accounts allow employees to manage their money flexibly and utilize their funds with complete liquidity.
2. Easier access to loans
One of the most important eligibility criteria for any loan is the income and repayment capacity of the borrower. When an applicant holds a salary account, the bank is already aware of their repayment capacity and has their income proof. This makes it easier for applicants to access credit and the loan process quicker. Many account holders may receive pre-approved offers as well. Hence, instant access to credit is another major benefit of a corporate salary account in a private bank in the country.
3. Debit and credit card benefits
When a corporate salary account is opened with a private bank, the employee receives a debit card and a checkbook. This makes fund transfers convenient for the employee. Once the employee has held the corporate account for a while, they can also apply easily for a credit card and use a range of benefits that come along with it, like cashbacks, discounts, airport lounge access, and more.
4. Other banking benefits
With a salary account, employees get several other personal banking benefits. For instance, the employee’s family members can usually open a zero-balance account with the same perks as the corporate salary account. The employee also gets internet banking and mobile banking facilities that make financial transactions from anywhere possible. Most banks also assign a personal relationship manager for salary account holders for assistance in all banking needs.
These are all tyour employees would get from having a corporate salary account. But as an employer, you would also benefit from it. Firstly, it would increase the sense of employee morale and satisfaction of your employees. It would also make it more convenient for you to transfer monthly salaries to all your employees. Since it is a recurring task, making it streamlined would reduce your workload.
