The benefits of using a Salary account

GarriPeople


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Posted by on Monday April 14, 2014 at 13:28:15:

Most big organizations demand that their employees should have a salary account where their salary or wage will be paid in or transferred automatically at the end of each month.

Some people might not see the importance of opening one separate account solely for purpose of receiving payment for their salaries but having one does have some benefits.

Benefits of a salary account include:
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1. Verified form of payment: Instead of paying cash to an employee and risking disagreements of whether payment has actually being made, payment made to a bank account can easily be verified and so it protects both the employer and the employee. The employer may only just give a pay slip to the employee indicating how the salary has been calculated and paid to his account.

2. Ease of payment: A salary account makes it easy for your employers or organization to pay you as they can easily pay in your money or make an electronic transfer into the bank account. Also, it saves the employee time and transportation spent in going to the bank to deposit money since the employer does it on his behalf.

3. Direct deposit is better: To an employee, it is safer and easier to receive your pay through a salary account than when you are paid with a cheque can be stressful to cash out and might be bounced

4. Access to bank loan: As an employee with a reputable organization and a salary account, you can apply for and get a loan with the bank you are operating salary accounts. They will grant you loan using your salary account as collateral. This means that, whenever you are paid, the bank collects a certain amount (depending on the percentage agreed on the terms of the loan) from your account until the loan is finally paid off.