As a salaried individual, you might have opened a salary account with Axis Bank, one of the leading private sector banks in India.
However, like other banks, Axis Bank also has certain terms and conditions for its salary account holders, one of which is maintaining a minimum balance in the account. In this article, we will discuss the minimum balance charges levied by Axis Bank for salary account holders and other related aspects.
Introduction
Axis Bank is known for providing various types of banking services to its customers, and one of them is salary accounts. Salary accounts are designed for salaried employees, and they come with many benefits and features. However, there are certain terms and conditions that salary account holders must comply with, one of which is maintaining a minimum balance in the account.
What is a Salary Account?
A sort of bank account created exclusively for those who receive a salary is known as a salary account. It is created by an employer on behalf of one or more employees, and the employee’s salary is directly deposited into the account. The account holder has access to the account’s funds through a variety of channels, including online banking and ATM withdrawals.
Importance of a Salary Account
A salary account is important for salaried employees as it helps them manage their finances efficiently. With a salary account, they can receive their salary directly in the account, which eliminates the need for physical cheques. Additionally, they can access various banking services such as debit cards, net banking, mobile banking, etc.
Benefits of an Axis Bank Salary Account
Axis Bank offers various benefits to its salary account holders, such as:
- No minimum balance requirements for the first six months after opening the account
- Free issuance of a debit card
- Free online fund transfer
- Attractive interest rates on deposits
- Discount on locker rentals, home loans, etc.
Minimum Balance Requirements for Axis Bank Salary Account
Axis Bank has set a minimum balance requirement for its salary account holders. The minimum balance requirement varies based on the location of the branch and the type of account. Generally, the minimum balance requirement ranges from Rs. 10,000 to Rs. 25,000.
Charges for Non-Maintenance of Minimum Balance in Axis Bank Salary Account
If a salary account holder fails to maintain the minimum balance in the account, Axis Bank levies a penalty charge. The penalty charge varies based on the location of the branch and the type of account. Generally, the penalty charge ranges from Rs. 250 to Rs. 750 per month.
How to Avoid Minimum Balance Charges in Axis Bank Salary Account?
To avoid minimum balance charges in an Axis Bank salary account, the account holder can:
- Keep the minimum balance that the bank requires.
- Convert the salary account to a savings account, which has a lower minimum balance requirement
- Close the account if not needed anymore
Axis Bank Salary Account Variants
Axis Bank offers various salary account variants, such as:
- Prime Salary Account
- Classic Salary Account
- Easy Access Salary Account
- Priority Salary Account
Each variant has its own features and benefits, and the minimum balance applied for each variant may differ. It is recommended to check with the bank for the specific minimum balance requirements for each variant.
How to Convert Axis Bank Salary Account to a Savings Account?
If a salary account holder wishes to convert their Axis Bank salary account to a savings account, they can do so by following these steps:
- Visit the nearest Axis Bank branch
- Fill out the account conversion form
- Send the form and any required paperwork, including identification and proof of address, to
Once the account is converted, the minimum balance requirement will change, and the account holder will be able to avoid the penalty charges.
How to Close Axis Bank Salary Account?
If a salary account holder wishes to close their Axis Bank salary account, they can do so by following these steps:
- Visit the nearest Axis Bank branch
- Fill out the account closure form
- Submit the form together with the required paperwork, such as a copy of your ID and verification of your address.
- Return the debit card, chequebook, and any other unused instruments associated with the account
After the account is closed, the account holder should collect a confirmation letter from the bank for their records.
Frequently Asked Questions (FAQs)
- Is there a minimum balance requirement for Axis Bank salary accounts?
- Yes, Axis Bank has set a minimum balance requirement for its salary accounts. The minimum balance requirement varies based on the location of the branch and the type of account.
- What are the charges for non-maintenance of minimum balance in Axis Bank salary accounts?
- If a salary account holder fails to maintain the minimum balance in the account, Axis Bank levies a penalty charge. The penalty charge varies based on the location of the branch and the type of account.
- Can I convert my Axis Bank salary account to a savings account?
- Yes, you can convert your Axis Bank salary account to a savings account by visiting the nearest Axis Bank branch and filling out the account conversion form.
- How can I avoid minimum balance charges in Axis Bank salary accounts?
- To avoid minimum balance charges in an Axis Bank salary account, you can maintain the minimum balance required by the bank, convert the salary account to a savings account, or close the account if not needed anymore.
- How can I close my Axis Bank salary account?
- You can close your Axis Bank salary account by visiting the nearest Axis Bank branch, filling out the account closure form, submitting the form along with the necessary documents, and returning the debit card, chequebook, and any other unused instruments associated with the account.
Conclusion
In conclusion, maintaining a minimum balance in an Axis Bank salary account is important to avoid penalty charges. However, if the minimum balance requirement is not feasible, the account holder can convert the account to a savings account or close the account if not needed anymore. It is recommended to check with the bank for the specific minimum balance requirements and other terms and conditions for their salary accounts.
