After digitization, several financial institutions offer online bank accounts with enhanced features and benefits to meet your daily monetary needs. In comparison to conventional accounts, online savings accounts are quick and hassle-free to sign up for, and you can open an account anywhere, anytime, irrespective of the banking hour. However, when opening a new online bank account, you must keep a few things in mind to get the best deals and maximize your benefits. Let us go through the things you should know during the new account opening.
How do online accounts differ from conventional savings accounts?
There is a lot of buzz about online savings accounts presently due to the convenience and services they offer. However, many confuse them with conventional savings accounts because they work similarly. An online savings account, like a normal savings account, provides interest on your bank deposits and gives you access to numerous banking services like monetary transactions, bill payments and more. But the funds in an online savings account are kept digitally, and almost services are provided online right from the new account opening.
In addition, you get enhanced features and benefits like digital access to your bank account, including transactions, access to other banking products and, in some cases, higher bank interest rates on your savings account. For instance, with IDFC FIRST Bank, you can open a bank account online instantly through the portal or mobile banking app and access it anytime. The bank offers the highest interest rates on their savings accounts along with unique zero-fee banking services.
Things you must know before opening an online bank account
Merely considering the interest rates on a savings account is not the only criterion that you must focus on while looking for the most suitable account. You need to take into account a few more factors before proceeding with your application. Some common factors that you must consider are –
- Easy application process
When opening a new bank account, look for a bank that offers a convenient account opening process. Several banks offer online applications, but you may need to submit supporting documents in person which proves to be hectic. Modern banks like IDFC FIRST Bank offer a completely digital process for new account opening. Moreover, with video KYC, you can verify your details and get access to your account almost instantly.
- Account accessibility
Online bank accounts are easy to access through online channels. However, banks face downtime, especially in remote areas, which can hinder your account accessibility. Research and find the banks with robust online access to your account to have hassle-free access to your account.
- Banking services and charges
Another important aspect to consider is the variety of banking services and the charges that you should pay for using those services. Online savings accounts usually offer a range of low-charge banking services. In this regard, IDFC FIRST Bank stands out as it offers over 25 banking services free of charge.
- Interest rates on savings account
While not the only factor to consider, the savings account interest rate is definitely one of the most important factors to consider if your sole purpose of the bank account is savings. The higher the interest rate, the bigger the capital gain. You can research online and find the bank that offers the highest interest rates on a savings account.
- Offers and privileges
Online savings bank accounts also offer several discounts and privileges. Most savings accounts also offer a debit card for easy fund access. These cards come with numerous lifestyle, travel, and shopping offers that you can look for when opening an online account.
The digital revolution in the banking sector has brought convenience and reliability to customers. Now, you can conveniently open a bank account anywhere, anytime. However, consider the factors mentioned above when opening a bank account to find the most suitable account that suits your financial needs.
