Not only are online accounts faster to access, more convenient and efficient, but they also offer higher interest rates.
Like everything else, the banking and finance sector also keeps evolving to match the pace of advancements in technology. Nowadays, exclusive online banks have sprung up that offer end-to-end services online, combining comfort, versatility and efficiency. Traditional brick and mortar banks have also launched most of their services online to attract millennials.
Nowadays, you don’t need to visit the bank to open an account. It is quick and easy to open a savings account online and manage banking on the go. But the lack of digital literacy and loyalty towards conventional methods deters many people from enjoying this convenient facility.
What is an online savings account?
An online savings account is an account that is managed entirely online. It can be an exclusively online bank or the digital branch of a brick and mortar bank. Apart from this, all the rules and regulations followed by online banks are the same as traditional banks. Moreover, you have the chance to earn an augmented interest rate as online banks generally provide more significant interests than their offline counterparts.
How to open an online account for savings
Opening an online high-interest savings account is a straightforward procedure. Although the application process may differ slightly from one bank to another, there are some generalised steps that you need to follow.
First, compare the online account rates and benefits, customer service, etc., for several banks. Once you have finalised the bank you want to open your account at, visit their website and find the application form. In this form, you will have to fill out certain necessary details regarding your name, age, source of income, employment details, residence details, etc.
Next, you will have to complete the Know Your Customer procedure. For this, you need to provide Aadhar OTP and get a video KYC done. Due to the fast eKYC method, this does not take more than a few minutes. Finally, once your account information is verified, you can transfer some sum into the account to activate it.
Who all are eligible?
To open a savings account online, you must meet the eligibility criteria set by the bank. Usually, the eligibility is similar to the eligibility for an account in a traditional bank. The common criteria include:
Age: Customers who want to open an online account for savings must be adults, i.e., must be at least 18 years of age.
Nationality: Candidates must be residents of India. Some banks may also allow foreign nationals residing in India to open an online account. NRIs can also open this account.
Benefits of having an online account
Not only are online accounts faster to access, more convenient and efficient, but they also offer higher interest rates. This is because the banks save a lot on their cost of operations, which makes them eligible for offering higher interests to the customers. You can also link this account to your standard account and set up timely transactions.
When it comes to safety and security, online accounts for savings take all the measures to ensure that the customer’s funds and transactions stay protected. Thus, these accounts present a more convenient and effective way of digital banking.
Disclaimer: This is a company press release. No HT journalist was involved in the creation of this content.
