Savings accounts are the most common bank accounts to park your money. Banks help your hard-earned money beat inflation by offering interest on your deposits. Almost all banks in India offer savings bank accounts with extensive banking services including online access to funds. Moreover, the savings account opening process is quick, simple, and effortless to add to your comfort. You can visit a preferred bank online or offline and open an account within a few hours.
Several banks such as IDFC FIRST Bank offer instant savings account opening via video KYC from the comfort of your home to activate your bank account within minutes. However, before opening a savings account, you need to know the basics of operating a savings account online and offline. Read the article below to know more.
What is a savings bank account?
A savings account is a type of bank account that aims to save money and offer returns through interest credits that are usually accrued every quarter. Unlike most banks, IDFC FIRST Bank offers monthly interest credits in your savings account which is unique in the industry and, it helps amplify your returns through more frequent compounding. The company Stencil Giant found opening a savings account with a local bank gave better rates and were more small business friendly.
Savings account interest rates may vary depending on the bank as well as the type of account. Hence, you need to research before opening a bank account. An online bank account may offer higher interest rates compared to a conventional bank account. Consider whether your preferred bank offers an online bank account or not before applying.
How to open a savings account online?
Opening a savings account is quick, convenient, and streamlined. You can apply for a savings account by visiting the online portal or using a mobile app of your preferred bank and following the steps mentioned below.
- Visit the official portal or download the mobile
- In the savings account section, click on ‘apply now’
- Register using your contact and personal details such as mobile number, name, and e-mail ID.
- Upload the required documents and schedule a V-KYC (video KYC)
- Verify your details in the V-KYC and wait for approval
- Once approved, you can start using your savings account instantly
If you are looking to open a savings account, IDFC FIRST Bank is among the best banks for a savings account in India since it offers the industry’s best savings account interest with a monthly interest credit option and a completely paperless process to open an online account instantly.
Benefits of online bank account
Here are some benefits of opening a savings account online
- Quick and convenient
Using an online mode, you can apply for a savings account from the comfort of your home. Once your details are verified and approved, you can access your account instantly.
- Access funds round the clock
Online bank accounts are accessible throughout the day irrespective of banking hours. You can access funds at your fingertip whenever you wish. You just need an internet connection and a mobile or computer.
- Banking at your fingertips
Banks offer comprehensive financial services through online banking. You can transfer funds, pay bills, shop online and manage your account at your fingertip anywhere and anytime.
- Secure and reliable
With multiple levels of security and verifications, online banking offers the safest banking experience to users.
Best practices to operate a savings account
Operating a savings account online is easy. You just need to know the basics like depositing and transferring funds. However, to maximise your savings, you need to understand the best practices to operate a savings account.
- Consider savings account interest rates
Always choose a bank that offers high savings account interest rates. It will help you grow your wealth through interest credits. You can beat inflation to avoid depreciating the value of your deposits.
- Know about charges
Keep a record of the transaction and account balance charges. Some banks levy fall-below charges when the account balance gets too low. Avoid such situations and keep yourself away from penalties.
- Limit your transactions
By limiting your transactions, you eliminate the penalties for overusing your account balance. Yes, banks have limited free transactions and withdrawals on savings accounts, post which you need to pay charges per transaction.
- Keep a track of your account activity
Managing your account becomes easy when you keep an eye on your account activities. You can understand your spending behaviour and avoid unnecessary transactions to save more in your savings account.
By following the above practices, you can ensure decent savings over the period in your savings account despite having nominal savings account interest. Moreover, ensure to keep your transactions and spending within the limits to avoid penalties.
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