- Date : 22/06/2020
- Read: 4 mins
What is a digital savings account, how can you open one, what are its key features? We answer these questions and more.
The coronavirus pandemic is changing every aspect of our lives. It has forced us to go digital – whether we’re paying utility bills, ordering groceries, or doing bank transactions. In fact, banks have a unique product called ‘digital savings account’ to help customers manage their finances digitally in these trying times.
With a countrywide lockdown in place, a digital savings account is quickly becoming a crucial tool. Going forward, it will become a dependable instrument as the world moves towards a contactless way of engaging with people.
So what is a digital savings account? Is it easy to open one? Here are some FAQs.
What is a digital savings account?
A digital savings account is designed to make banking easier. It is a quick, paperless, and secure way of opening a bank account. You can do it yourself online without visiting the bank branch or seeking help from a bank representative. You just have to follow a few steps to open a savings account instantaneously.
How is it different from a regular savings account?
The main difference is in the way you open the account. For a regular account you have to visit a bank branch, fill up a form, and submit KYC details. A digital savings account can be opened online. It is paperless, so you won’t get a physical bank statement or passbook as you would with a regular account.
Related: Understanding your savings account
How can one open a digital savings account?
You can open such an account by visiting your preferred bank’s website or by downloading its mobile app. All you need to do is submit a few basic details (name, age, etc.) and select your home branch. Next, upload your Aadhaar and PAN details. That’s it – you now have a digital savings account!
What are the criteria to be fulfilled?
While every bank will have its own rules, the basic requirements are as follows:
- You should be aged 18 or above
- You should be a resident of India
- You should produce the required KYC documents
- You should have a valid email ID and an active local mobile number
What are the services one can avail from it?
- Transfer funds from the app
- Check transactions online
- Withdraw cash from the bank’s ATMs
- Pay bills
- Make investments
- Get a debit card, and more
What are the key features of a digital savings account?
Again, this may differ from bank to bank, but two key features of a digital savings account are a higher interest rate on money in your account and no charges on maintaining zero balance. In short, it ensures instant, anytime banking.
Can I get a zero balance account?
Yes, you could. Many banks are offering zero balance digital accounts. Check with your bank to see if you can shift your account to one with minimum Average Quarterly Balance (AQB) or a zero balance one.
What are charges for debit cards, cheque books?
Physical debit cards are usually on chargeable basis depending on the type of account and will also attract an annual maintenance charge. The issuance charges could be anything between Rs 99 to Rs 999.
Cheque books (with a minimum of 10 cheque leaves) are not free and are chargeable anywhere between Rs 3 to Rs 10 per cheque leaf varying from bank to bank.
Can I visit a branch if I have queries/issues with my account?
Yes, you are free to visit any bank for queries or assistance regarding your account or use other services such as get a physical account statement, issue a demand draft or make remittances.
What other benefits do I get with the digital savings account?
Many banks offer a virtual debit card that has a 16 digit number just like a regular debit card minus the plastic. Virtual debit cards have no issuance or renewal fee. These can be used across any digital payment gateway.
Similarly, you can also enjoy the benefits of free transfers like RTGS and NEFT.
Now that you know everything about digital savings accounts, get your Digital Saving account today! Check your preferred bank’s website for more details. Get on board and learn the ropes of navigating a contactless world as this will soon become the new normal. Do not hesitate and gift yourself Digital Savings Account now!