In the modern times today, we are driven by technology at each step. There is hardly any aspect of our lives that has been left untouched by it. Even, the banking sector has undergone a significant transformation, making various banking services more accessible for everyone. One of the latest developments that have redefined the traditional banking is Online Bank Accounts. By subscribing to our newsletter, you will stay updated with the latest happenings in the digital banking ecosystem. Read the best stories for your financial needs, get expert tips, and find out about the latest developments on banking products all under one roof.
Online Bank accounts are bank accounts that can be opened online on the website of the respective bank. There is no need to go through any lengthy process to get savings account for yourself. Just log on to the site of the bank, complete a quick process and get an online account for yourself. Presently this facility is extended by most private sector banks in India.
Online Bank accounts offer a host of benefits over traditional bank accounts and are becoming very popular amongst the younger generation, who need to have their first foray into the banking sector. Following are some of the significant advantages offered by online bank accounts: -
- Instant Account: - Online bank accounts can be opened on the website of any bank without you needing to visit the branch. You just need to fill out the relevant information, upload necessary KYC documents and you are good to go. After just a few clicks your online account is opened and ready to be used. But do remember that this account is available only for Indian Citizens over 18 years of age.
- No Minimum Balance: - Most of the online bank accounts have no minimum balance requirements as compared to traditional bank accounts. Thus, you are saved from exorbitant minimum balance charges and enjoy all the benefits of a conventional bank account.
- Debit Cards and Internet Banking: - Once you open an online account, you are entitled to all banking facilities such as Debit Cards and Internet Banking, after paying a nominal fee. Some banks also offer virtual debit cards which are absolutely free of cost and can be used for online shopping and payments.
- Minimal Documentation: - Online bank accounts eliminate the need for filling out lengthy forms and documents. You just need to upload pictures of your KYC documents, fill out the necessary details and you are good to go. It must be noted that KYC documents are mandatory for opening an online bank account. In case you want to convert your online account into a full account, you just need to visit the nearest branch of your bank and complete a simple process.
- Cashless Operations: – Online bank account offers you the flexibility of depositing and withdrawing money using internet banking. You can also make payments and transfer funds using internet banking conveniently. You can also deposit cash at the branch or cash deposit machine and withdraw cash from the branch or the ATM’s by paying nominal usage charges applicable to all bank account holders.
- High Rate of Interest: - Online bank accounts offer a higher rate of interest on the balance maintained in the account as compared to traditional bank accounts. The only restriction is that at any given moment of time the maximum balance that can be held in the account is Rs. 1 Lacs and the total allowable deposit is Rs. 2 Lacs.
- No Transaction Limits: - Online savings account do not attract any charges for online and mobile transactions. ATM Transactions and Cash Transactions are chargeable as per the prevailing rates of the respective bank. Online funds transfer through NEFT, RTGS and IMPS are absolutely free.
- Validity: - Online bank accounts are an excellent way to be introduced to the world of banking. They are entirely valid for a duration of one year during which they can be used to carry out any number of banking transactions. After the expiry of the period of one year, they must be converted into a regular savings account.
- Deals and Discounts: - Many banks offer attractive deals for transactions done through online bank accounts. Cashback offers and discounts are provided to online account holders on a periodic basis for online purchases and shopping transactions.
With the vast array of benefits on offer, it is just a matter of time that online savings account start posing a severe challenge to traditional bank accounts.