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This is very silly question I know , but there is a big debate happening between my colleagues.

Say A is having Salary account with Bank AAA who is working in company ABC. Now A resign the jobs and joins another company XXX. He can transfer the salary account to new employer and continue enjoy the benefits of salary account. Hope this is right?

Now Say B is having Salary account with Bank AAA who is working in same company ABC. Now B quits his job permanently. After 3 months , salary account will be converted into saving account.Right?

But B is saying that he will ask his friend C to send him monthly some money say Rs.10000 every month and after some days C will return the money back to him. In this way he is saying he can continue the Salary account.

So is this true that if we(not employer) send money to salary account every month, it will not be converted to Savings account?

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    What country is this? Is a "salary account" a product/service offered by a bank that is different from a checking or savings account? Or is it something operated by the employer? – yoozer8 Jun 20 at 11:13
  • Rs.10000: appears to be India – Hilmar Jun 20 at 11:29
  • Yes.India it is. Salary account is offered by bank with extra benefits – Arun Jun 20 at 12:08
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    You'd probably be better off approaching "Bank AAA" and checking their specific policies on that specific product, versus asking us for a generic (and maybe wrong) answer. – dwizum Jun 20 at 13:15
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According to the terms and conditions sending money between private individuals would not count.

This is what citibank says about their salary account...

You will be able to enjoy the many benefits of Citibank Suvidha Salary Account only if your organization has an on-going Citibank Suvidha banking relationship. Please check with your Human Resource or Payroll department before applying.

ICICI bank has similar wording

In the event the employment of the Customer with the Employer ceases, the Customer shall immediately notify ICICI Bank regarding such termination of employment. On termination of the employment, ICICI Bank reserves the right to close the Salary Account or to treat the Salary Account as an Account wherein the customer will cease to enjoy any/all benefits under Salary Account scheme, provided however the Customer deposits all documents as required by ICICI Bank and under such circumstances, these Terms shall cease to apply to such Account and it shall be governed by the Terms and Conditions.

HDFC's eligibility criteria include this wording

You must be employed with a corporate that has a salary account relationship with HDFC Bank

You should look at the specific terms and conditions of bank AAA but I imagine they will have a similar clause.

  • Thanks. Mine is HDFC. Hope it is same. – Arun Jun 20 at 13:21
  • It depends on case to case basis. Some banks keep it as salary account even after you quit job, some convert it to savings. A regular deposit of money doesn't make it salary account. I had salary account in HDFC, changed jobs, continued the account, it's got converted into savings. – Dheer Jun 20 at 16:20
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But B is saying that he will ask his friend C to send him monthly some money say Rs.10000 every month and after some days C will return the money back to him. In this way he is saying he can continue the Salary account.

That's out and out fraud, and it's the policy of PF&M to not support fraudulent activities.

  • Got it. Debate is now over :) thanks ! – Arun Jun 21 at 6:29

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