Those who want to open a bank account for professional reasons are often faced with a question: which option to choose between a checking account and a salary account? What are the differences between them?
If this is your case, don’t worry. This is a very important topic to be addressed because, currently, few companies pay their employees by check or cash. This, in turn, causes the questions to be recurring.
So, if you want to know which alternative is best suited for your context, keep reading this article!
What are the differences between a checking account and a salary account?
By knowing more about the difference between a checking account and a salary account, both the financial organization and the staff can benefit. This is because the salary account option tends to be a little more limited for those who want to start moving their money — whether through magnetic cards, checks, transfers, and more.
It is the option that offers the most complete financial transactions for its customers. After all, it provides a plan that will grant the user access to some services, which include:
- monthly withdrawals;
- transfers (TED, DOC or between banks);
- bill payment;
- access to checkbooks;
- withdrawal of extracts;
- payment schedule (automatic debit);
- And much more.
The amount released free of charge monthly for each of the actions described varies from bank to bank and from account to account. While there are options that offer unlimited TED and DOC, for example, others limit them to up to 3 per month and charge fees if there is an extrapolation. It is essential to contact your bank and ask the manager for as much accurate information about your service package as possible.
The same can be said in relation to the payment of fees for the use of services included in the current account. While digital banks do not tend to charge an annual fee, some traditional ones still do. So, stay tuned and choose the option that best fits your reality.
Unlike the current account, which allows the customer to handle their finances as they prefer, the salary account has a specific purpose: the payment of earnings, pensions, balances, retirements, tenths and other such receipts. It is opened and closed by the paying entity and cannot be used to pay bills.
According to Central Bank regulations, it is also not possible to receive other types of earnings through this type of account. On the other hand, the collection of fees related to the receipt of any amount is prohibited. Those who have this option cannot have access to checkbooks, but they receive the magnetic card and can make withdrawals or withdraw statements – usually, in a limited way.
A positive point of this option is that, employees who want to transfer the full amount of their monthly payment from a salary account to a checking account can do so free of charge and on the same day. The Bank in question will not be able to request extra payments and the consumer will not receive their magnetic card.
To further complement the knowledge regarding the types of account, we will present information about receiving loans through the salary account and some tips for you to make the best choice.
Is it possible to receive a loan in the salary account?
Many people wonder if it is possible to receive a loan through the salary account. After all, with the topic of financial education increasingly on the rise, access to credit has been an interesting option for those who want to get out of debt, start investing or even organize their finances in order to have money left over at the end of the month.
However, with regard to this modality, the best option is to opt for the current account. After all, the salary account is intended solely and exclusively for the receipt of the indicated amounts and does not allow any other type of financial transaction to be made.
However, by having access to a checking account at any bank, it is already possible to look for a financial institution – preferably one that has good rates and services – and analyze the possibility of getting loans , financing and other financial products.
How to choose the best situation for my context?
The time has come to answer the final question between checking account and salary account: which is more suitable for each case? Obviously, you need to analyze the situation individually. However, in terms of financial profiles, it is already possible to reach some conclusions.
Those with a dirty name can benefit more from the salary account. After all, it is possible to count on this type of service without going through the credit analysis that banks do when opening checking accounts for their customers.
A credit analysis is a survey of the financial past of a consumer in question. It investigates your default risk, checks your credit score and informs you about how you handle your finances.
The problem for those who open a salary account due to debt is the fact that any extra service that needs to be performed at the bank, such as transfers or issuance of checks, will have to be paid separately. So you can spend more.
Account free movement
Therefore, if you do not have any restrictions in your name and you want to move your account freely, it is more interesting to hire a checking account. In any case, always inform yourself about the contracting conditions offered by the bank and know your rights when dealing with your money.
Knowing the main differences between the types of accounts provided by banks is essential. Thus, you can choose the one that best suits your needs, as well as optimize your personal finances and your organization!
If you liked to know the main differences between checking account and salary account and want to know more about the subject, be sure to get even more information by contacting us ! So you can make the right decisions for your financial future.
Posted by: John Labunski