Technology has become more prominent in every sector, particularly finance and banking. Opening a savings account is the first step in everyone’s wealth creation and personal finance journey. However, people don’t necessarily need to visit a bank branch to open a savings account physically. Now, they can open a digital savings account online from the comfort of their homes. All they need is a smartphone or a laptop with internet connectivity.
Explore more about these savings accounts and their possible benefits.
What is a Digital Savings Account?
As technology fills gaps in almost every sector, digital savings accounts allow you to open and operate your accounts from your homes or anywhere else. Banking services should be accessible whenever and wherever the customer needs them, and digital accounts serve that purpose well.
Liberating account holders from tedious banking procedures, digital bank accounts redefine the banking concept through internet banking, websites, and mobile banking apps.
An individual can open a digital savings account with all the banking features embedded in an online platform. The account remains at the holder’s command without the need to physically visit the branch. Supported by numerous RBI and government initiatives, digital banking solutions have ushered in a new digital banking era. It has given banking more convenience and added features compared to regular bank accounts.
Benefits of Opening a Digital Savings Account
Here’s what one gets by opening a savings account online:
- Instant Savings Account Opening: Why visit the bank branch when opening an account is possible from the comfort of home? Customers must enter their KYC details and attend a video call to complete the account opening process
- Earn Interest: It’s not wise to let the hard-earned money sit idle in a purse. Opening a savings account is a great way to keep money safe in a bank and earn interest on it, making money grow over time through with interest
- Paperless Procedure: The digital account opening process is completely paperless. Customers can complete the e-KYC verification to open an account and get limited access to their new account within minutes. After account creation, they can make this account fully operational by completing the KYC
- 24/7 Online Banking Access: Almost everyone would prefer sleeping for an extra hour instead of leaving bed early and visiting the bank branch. Account holders can access their savings account anytime, anywhere, with the bank’s internet banking, mobile banking, and website banking solutions. Creating Fixed Deposits (FDs) and investing in mutual funds is possible using a digital account
- Minimum Balance Requirement: Although many banks allow customers to open digital savings account zero balance, check the bank’s minimum balance required before proceeding further
- Virtual Debit Card: Customers instantly get a virtual debit card after opening a digital account. Whether they want to invest their money or get exclusive rewards on their shopping, they can use their virtual debit card until they receive a physical card
- Apply for Various Services: Digital account is a comprehensive scheme that gives access to best-in-class banking products and services, like FDs, National Pension Scheme (NPS), Public Provident Fund (PPF), loans, etc. Digital account holders can apply for these schemes online and avail their benefits
- Money Transfers and Bill Payments: Once the account gets operational, users can start transferring funds and paying their bills with the ease of NEFT, IMPS, RTGS, UPI, etc.
- Safety and Security: Before opening a digital account, choose a bank with a secured server to keep the money safe and easily accessible
- Easy Account Tracking: With a digital account, account holders can track their incomes and expenses online without visiting the bank branch. They can log in to their digital account and check their balance instantly. Furthermore, they can view or download their account statements to track their transactions.
Steps to Open a Digital Savings Account
First, one must fulfil the bank’s eligibility conditions to open a digital savings account. The applicant should be at least eighteen years of age and should not hold another savings account in the same bank. For minors, the parents or legal guardians can open an account on their behalf. Those who fulfil these criteria can proceed with the straightforward process of opening a savings account online. These are the steps to follow:
- Visit the bank’s official website
- Click on ‘Open a Digital Savings Account’
- Enter your email address, mobile number, and PAN details
- Enter your Aadhaar number
- Enter the OTP received on your registered mobile number to verify the Aadhaar number.
- Accept the terms and conditions, add funds to the new account, and complete the e-sign process.
- Attend a video call to complete the KYC process.
After completing these steps, the account will automatically convert into a full-feature savings account without transaction limits. However, before attending the video call for KYC, keep your Aadhaar and PAN cards handy.
All digital bank accounts have perks and regulations varying from bank to bank. However, one thing is common – all of them provide easy access to account and banking services and reduce bank visits significantly. Interest earned periodically is another benefit. So, what are you waiting for? Open a digital savings account now and start enjoying the benefits instantly.