Can banks charge for an inactive salary account?


Can banks charge for an inactive salary account?


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.


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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BB Expert