Recently the SBI has implemented many charges and limitations in account maintenance and transactions, and has in fact increased those charges too.
So many people are hesitating to do a transaction and in fact, they are switching the bank recently because of the charges levied.
It is true that the charges have been increased for certain accounts/services. For instance, minimum account balance charge, withdrawal charges, DD/BC charges, NEFT/RTGS charges and limitations like non-home branch withdrawals and daily transaction limits are creating disappointment among SBI customers.
But there are some alternatives and solutions for that. At Banking Minutes, we try to keep you informed of all possible solutions/alternatives.
Salary package and Pension accounts are one of those alternatives.
What is a Salary package Account?
The conventional thought is that that if we get salary/pension in our account then it is a salary/pension account. This notion is wrong.
If you are getting salary/pension, then you have to inform it to the branch with the required documents.
Upon doing so, the bank will convert your account to a Salary/ Pension account in the Bank Database.
Who is eligible for salary package and pension type account?
The following people are eligible for a salary package/pension account.
- State government employees
- Central government employees
- All type of pensioners (Both central and State government)
- Any Corporate/organisation employees with a Gross salary above INR 10,000/-
Salary package accounts and its types
With respect to your work place, the salary package accounts are of various types as given below.
- Railway salary package.
- Defence salary package.
- Paramilitary salary package.
- Police salary package.
- State government salary package.
- Central government salary package.
- Corporate salary package.
- Startup salary package.
Thus the salary package account is available for all government and working employees.
And also each package is divided into four categories according to the designation in the job. They are,
Each category has its special features and concession.
All retired employees from the State Government, Central Government, and Corporate office belong to this category.
And, unlike a salary package account, the pension account has no sub-categories in it – all of them are pension accounts.
Required documents to convert the normal account into Salary/Pension type account
To convert the normal account to a Salary/Pension account, you need the following documents:
- KYC documents(PAN, Aadhaar, voter id, etc…).
- 3-month salary slip.
- An employee ID card.
- Letter from the employer.
Along with these documents (Photocopy and originals), submit an application form in the branch to convert your account.
Benefits of converting your account to a Salary/Pension account
By converting your account type to Salary/Pension account, you will get an exemption from
- NEFT/RTGS charges.
- DD/BC charges.
- MAB charges. (minimum account balance)
- Cheque leaf charges.
- Online Transaction charges.
- Processing charges.
- Overdraft facility.
- Concession in locker facility.
- Accident insurance.
- Free Demat account for the first year.
These benefits are waiting for you if you convert your account into Salary/Pension.
In case you lost your job or if your Salary/Pension is not being credited in your account for 3 months then, you can’t withdraw your amount until you change it to a normal account.
So avail the benefits of a Salary/Pension account and avoid a few charges levied by the SBI!