Digital innovations have paved new ways for seamless and convenient banking. You can access almost every financial service from the tip of your fingers. Thanks to the modern-day digital services, you can also open a bank account without visiting a branch at all! Banks and financial institutions offer the facility to open a savings account online with minimal documentation. Opening an online bank account accompanies several benefits, including zero or low service charges and quick fund access. In the article below, let’s find out the benefits of opening a savings account online.
Benefits of opening a savings account online
Digital bank accounts offer several advantages over standard savings accounts. Along with the easy application process, you get quick access to funds via digital kiosks and ATMs. Moreover, you get periodic rewards and offers through debit payments.
- Quick account opening process
Opening an account requires extended documentation and a paper verification process. However, you can skip the long documentation process with an online saving accounts opening by simply uploading them to the bank’s portal. In addition, you also get quick approvals and account activation through digital mode.
- Attractive interest rates
It may not be widely known, but digital savings accounts offer higher interest rates than a standard bank account. While a general savings account offers 2-4% interest rates, a digital savings account offers anywhere around a 5-6% interest rate. For instance, IDFC FIRST Bank’s online savings account is among the highest interest paying accounts, with rates of up to 6% on your deposits. You get interest credit monthly which maximises your savings.
- Easy access to funds
You also get a debit card and net banking facility to access funds while on the go. You can conveniently withdraw funds from various ATMs across the country or use your card for online shopping. Using the net banking facility, you can also pay merchants and outlets within no time.
- Convenient fund transfer facilities
Online savings accounts offer fund transfer facilities like RTGS, NEFT, IMPS, and UPI. As an account holder, you can use any online fund transfer method for convenient money transfers within the same bank and other banks.
- Low maintenance charges
Online savings accounts have low or zero account maintenance charges. It means saving more in your account instead of worrying about bank charges. However, it depends on the bank you are applying for online savings account whether you get zero maintenance fee or not. You should open a digital savings account after researching and finding the most suitable one per your requirements.
- Standing instructions and auto bill payment
Along with an array of payment and fund transfer facilities, you can schedule your payments through standing instructions and auto debit. All your bills and balances are automatically paid on the set date, easing the hassles of manual payment each month.
Digital/online savings accounts are far more convenient than standard savings accounts. You get complete safety of your funds through multiple levels of security and encryption and banking services on the tip of your fingers.