I had a Salary Account in Axis Bank. Our Company changed the Salary Account to another Bank and stop Crediting the Salary to Axis Bank’s Salary Account. Six months later, I visited the bank to Close my Old Salary Account. After checking my Account Details, the Staff told me to pay Rs.1000/- to Close the Account!!!!!!. As we know there is no charges to close the Account, When I checked with Bank Staff, She told me that Rs.1000/- is the penalty!!!! I need to pay for not maintaining the Minimum Balance in my Salary Account.
I told them that, as it is a Salary Account, I need not maintain any Minimum Balance as it is Zero Balance Account. Bank Staff told me that if the Salary is not credited regularly to our Salary Account for some time Automatically it will be converted to Normal SB Account. We need to maintain Minimum Balance in the Account.[It varies from Bank to Bank]. Otherwise Bank will levy penalty to the Account Holder. I paid Rs.1000/- and Closed my Salary Account in the Axis Bank.
Dear Friends Many for you have Salary Account in the Bank. When you Change the company be careful about your Old Salary Account. Some useful information about the Salary Account.
- Salary Account Status will be maintained as long as the Salary is regularly credited to your account.
- For Any reason if the Salary is not credited to your Salary Account after a specified duration [Duration varies from bank to bank] it will be converted to Normal Savings Bank or SB Account.
- We need to maintain a Minimum Balance in the SB Account.
- Otherwise Bank will levy penalty to the Account Holder.
How to Avoid this
- Check with Bank the time duration where the Salary Account is converted to Normal SB Account.
- Close your old Salary Account whenever it is not required.
- If you want to retain this Account maintain the Minimum balance as per the Bank Rules.
Always Close your Old Salary Account to avoid the Penalty!!!!!!.