Can banks charge for an inactive salary account?

#1

Can banks charge for an inactive salary account?

#2

Yes banks can charge money especially if such accounts have been untouched and have no money. Some banks consider such inactive salary accounts as closed after a certain period while others convert it into regular savings account. A dormant salary account may be charged for a penalty fee for not maintaining the desired minimum balance.

#3

Hi Reba,

If your salary account becomes inactive, it will become a savings account. It will become a savings account when there are no salary credits for more than 2 months. When your account stays inactive for long, your account can become inoperative. If your savings account or current account hasn’t witnessed any transactions (credit/debit except interest credited by the bank, deduction of service charges) for more than 1 year, the account is considered inactive. On exceeding 2 years, the account is declared dormant/inoperative. To keep your account active, you have to do any of the below transactions.

• Outward bill
• Inward bill
• Transactions through cheque.
• Deposit of cash
• Deposit through cheque
• Cash withdrawal or deposit via ATM
• Internet banking transaction
• Crediting interest earned mandate on Fixed deposit to Savings Bank Account

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Cheers,
BB Expert