Inactive salary account


I have an inactive salary account. Should I keep it as it is or close it?


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. So i would suggest close all your dormant salary accounts or keep them to the bare minimum.


Hi Aswani,

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

Looking for a Savings Account? Click here.

BB Expert