The banking sector was one of the first to adopt digitisation to streamline customer experiences. A digital savings account facility is a result of such an initiative. It is a paperless, secure and fast way to open a savings account on a digital platform.
With access to this savings account, you can avail of all banking services such as cash deposit and withdrawal, instant fund transfer, mobile and internet banking and so on, anytime, from anywhere.
Virtual presence and fully online operations are the primary differences between digital accounts and normal savings accounts. The account holder need not visit a bank’s branch or stand in a queue to start or operate this account.
Almost all leading banks now offer online savings account for enhanced financial inclusion. Know about its key features before applying.
Key Features & Benefits of the Digital Savings Account
A digital savings account offers a host of benefits, as listed below:
- Instant account opening
Opening a digital savings account is hassle-free and takes only a few minutes. You simply need to fill up the online application form and verify Aadhaar and PAN number alongside mobile number and email-ID to opt for one.
Selected banks also facilitate video KYC to complete the application process online. You can choose to open a joint account and avail nominee facility with this fund.
- High interest yields
Like normal accounts, a digital savings account also generates a decent interest income that you can earn on the available account balance. Generally, one can earn the interest quarterly or annually. The rates vary with banks.
- E-KYC verification
KYC verification is mandatory for any banking service, including opening a savings account online. However, with digital savings accounts, one can opt for e-KYC through a video conference with the concerned bank.
- Easy online transactions
Digital savings account also enables account holders to conduct online transactions like direct bill payment, transfer money through NEFT, RTGS, and IMPS. It does not attract additional charges. One can also generate UPI against the savings account.
- Free digital banking facility
With access to an online savings account, you can enjoy all facilities available for a normal savings account. Withdraw and deposit funds, issue cheques, update passbooks, invest in FD and RD, etc. but virtually. One can also download the mobile app of the designated bank for more convenience.
- Virtual debit card
Banks also issue an ATM cum debit card with a digital savings account. You can use the card for online or offline purchases or withdraw money from ATMs. You do not have to carry a physical card at all times.
- Zero balance account option
Several banks also offer zero balance digital savings accounts to their customers. These facilities do not require account holders to maintain an average minimum account balance. This means they can keep the account balance nil without attracting penalties or maintenance fees.
However, to open a digital bank account, individuals need to meet certain eligibility criteria.
Who Should Apply for Digital Savings Account?
People from any profession and financial background can apply for a digital savings account. However, they need to fulfil the eligibility criteria below.
- Indian residents above the age of 18 can open this account.
- Applicants must have an Aadhaar Card and PAN Card.
- They should have a local mobile number that will be linked to a savings account.
- Must have completed KYC verification and submitted the necessary documents.
Note: You can open a savings account from your mobile or other devices. Additionally, you can have only one saving account with a bank.
After checking the eligibility, take a look at how to open a savings account online.
How to Open a Zero Balance Savings Account?
Follow the steps below to open a digital savings account:
Step 1: Visit the online portal of your preferred bank and navigate to the savings account page.
Step 2: Select the digital savings account variant such as zero balance account and click on ‘Apply Now’.
Step 3: Duly fill up the application form with information like name, mobile number, PAN and Aadhaar number.
Step 4: Tick off the Terms and Conditions check box and click on ‘Submit’.
After the KYC verification, the bank will activate the account immediately.
A digital savings account is a secure virtual account wherein you can deposit money and withdraw it safely whenever required. It also allows you to earn attractive interest on the available fund balance and maximise profit.