Everything you need to know about opening an online/digital savings account

Gone are the days when one had to visit a bank branch, wait in long queues, fill in a bunch of paperwork, submit photocopies of identity and address proofs just to open a savings bank account. The busy schedules of the working class do not allow much time for this cumbersome process. With the advancement of technology and the futuristic thinking of industry leaders, the banking sector is undergoing major changes to keep up with the pace of the new age tech-savvy consumers. A new genre of banking in the form of online savings account is making waves, bringing in end-to-end financial services online combined with convenience and versatility to cater to every segment of the consumer.  

Traditional banks are trying to bring all their services online with their net banking portals and mobile applications, but they are still far from making their services user friendly. Fintechs are trying to bridge this gap by partnering with the banks in providing a smooth online banking experience for their customers.

You no longer have to visit a brick and mortar bank branch to open a savings account. It is now easy to open a savings bank account online and manage banking on the go. The lack of knowledge about these new advancements in the banking industry and the loyalty and trust bound with years of banking with physical branches has still left consumers with a bunch of questions about an online savings account. In this article, we’ll share information about how to go about opening an online savings bank account, its eligibility criteria and the benefits of having one.

What is an online savings account?

An online savings bank account, also known as a digital account is entirely managed online including a 100% digital (paperless) account opening process. Such exclusively online accounts are usually offered by fintechs in partnership with established well-known banks or small finance banks. They are regulated by the Reserve Bank of India (RBI) just like the traditional banks you know and follow all the rules and regulations laid by the regulatory authorities. 

How to open an online savings account?

Opening an online savings account is quite simple and straightforward. Once you have researched the various details such as the interest rate offered by the bank, their core focus area, accessibility to customer support, their position in the industry, etc. you might also want to check if they offer mobile-only or web-based service too. Although the account opening process may vary across different banks, in general, this is how it works: 

Once you have finalized the bank, you may have to download their mobile application or the account opening form from their web portal. The bank requires you to share a few details such as your full name, age, source of income, average yearly income, employment details, permanent/current address etc. and your identity proof such as Aadhaar. 

Following this, you would be required to complete the Know Your Customer (KYC) formalities. This has been made very simple these days with e-KYC/video KYC where you would need to share your Aadhaar-OTP while doing biometrics or share a short video to establish your identity. All this is done in a matter of a few seconds.

Once this is done, you can immediately start using your online savings account.

Eligibility criteria for opening an online savings account

The eligibility criteria for opening an online savings account are set by the partnering bank and they are quite similar to that of a traditional bank. The most common ones are:

• Age: The customers interested in opening an online savings account must be at least 18 years of age.
• Nationality: Although most banks require their customers to be resident Indian citizens, many of them allow non-resident Indians (NRIs) as well as foreign nationals to open an online savings account with them. 

It’s recommended that you check these criteria with your banking partner beforehand.

Benefits of an online savings account

• 100% Paperless account opening: One of the best parts of an online savings account is that you never have to leave the comforts of your home and open an account in a matter of a few seconds without any paperwork.
• Higher interest rates and zero balance account: Most traditional banks require their customers to maintain a certain minimum monthly balance. Since the fintechs are able to cut down their overheads of managing physical branches and function with comparatively fewer resources, they pass on the benefits to their users in the form of better interest rates on savings account balances and zero balance accounts too. 
• Impressive UI/UX: Since fintechs are basically technology companies, they focus on providing a seamless banking experience with brilliant UI/UX for their users. 
• Safety and security: The fintechs providing these accounts lay heavy emphasis on encrypting user data with continuous monitoring to safeguard your accounts. They are as safe and secure, if not more than the traditional banks.
• Customer support: Since the core idea is to provide a hassle-free banking service, many online savings accounts come with a 24×7 in-app or toll-free calling facility.

We hope these insights strengthen your understanding of online savings account and make you more confident in taking the next step. 

NiyoX is one such 100% digital/online savings account with an integrated wealth management account for mutual fund investments. You can open an online NiyoX digital savings account that has a high-interest rate of 7% p.a.* and zero balance savings account in less than 100 seconds. Experience the sheer brilliance of digital banking with NiyoX.

Happy banking!

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