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Digital Savings Account: Features & Benefits

Digital savings accounts have made it easier for individuals to open a savings account. One can apply for a digital account online from the comfort of their home or office. The account is opened instantly and you can carry banking transactions out without any delay.

In this article, we will know more about digital savings accounts.

What are digital savings accounts?

A digital savings account or instant savings account is a type of savings account that you can open online after filling in the required details. One can carry out the online account opening process from the bank’s website or from the bank’s app. Many banks offer digital accounts to new customers i.e. customers who don’t have any prior relationship with the bank. Kotak 811 is one such digital savings account.

Read: Looking for Best Digital Savings Account? 5 Factors to check before opening

How to open a digital savings account online?

You can open digital savings account online by visiting the bank’s website or downloading the bank’s app. Individuals need to enter their PAN and Aadhaar number along with other details to open the account instantly.

Here are the steps that you may have to go through to open a digital savings account.  

  • Enter the mobile number that you want to be registered with the bank. It doesn’t have to be your Aadhaar number.
  • Enter your PAN and Aadhaar number
  • You will receive an OTP on your Aadhaar registered mobile number. Enter the OTP to proceed.
  • Bank will fetch few details from UIDAI after the Aadhar OTP verification.
  • Add the other personal details such as mother’s name, annual income, occupation etc. If your communication address is different from your Aadhaar address, you can add your communication address.
  • After you complete the required details, you can register for net banking and mobile banking credentials.

After you complete the process, banks will provide you with your account number and other details. Keep the details handy for future reference. Your instant online savings account is now open.

As the account is opened without any in-person verification, you have to complete the full KYC of your account by visiting the nearest bank branch. After the KYC process is completed, you can use your online savings account without any limits. 

Features of digital savings accounts

Online account opening process: The paperless account opening process is one of the main benefits of a digital savings account. The account opening process can be carried out from your laptop or mobile with zero paperwork. As the process is online, you don’t have to visit the bank’s nearest branch to open the account.

Instant account opening:

In addition to the online account opening process being completely online, it is also an instant process. You just need to add your PAN, Aadhaar number and enter the OTP that you have received on your Aadhaar registered mobile number to open the account instantly.

Read: How to Link Aadhaar with mobile number

Earn interest: Digital account customers receive interest rate on their deposits. While banks revise their interest rate regularly and may not be attractive when compared to other saving options, savings account is the safest avenue to park funds. Different banks offer different interest rate to their savings account customers. So, it is always a good option to compare the interest rate of different digital accounts before applying for a specific online savings account.

Debit card:  Banks offer debit cards to their digital account customers. Most physical debit cards come with an nominal annual fee. Depending on the bank, one can receive VISA, Mastercard or RuPay debit card.

Monthly average balance(MAB): Savings account holders have to maintain minimum average balance every month. Banks may levy penalty if the average balance is not maintained. However, things are little different for digital accounts. Digital savings accounts can be zero balance or have a minimum average balance. Moreover, few digital accounts waive off the MAB if customers open a Recurring Deposit (RD) or book a Fixed Deposit (FD)

KYC process: To continue using the digital account, you need to complete the KYC process of your instant savings account. You can visit your bank’s nearest branch or schedule an appointment with a bank’s representative to get your documents verified. Few digital accounts such as Kotak 811 and ICICI InstaSave offer video KYC account opening process to their customers. Accounts opened through video KYC are full-fledged savings accounts and are valid for lifetime.

Limitations

As per RBI regulations, there are certain restrictions on instant savings account. You don’t have to worry about these restrictions as these limits are removed after you complete the KYC process of your savings account.

  • Initially, you can keep a maximum balance of Rs.1 lakh in your account.
  • The cumulative value of transactions of your account should not exceed Rs.2 lakhs in a financial year.
  • The account is valid for 12 months. The account will be closed if KYC process is not carried out.

Read: Worried your Kotak 811 bank account freeze? Here’s what you need to do


You can open an instant online saving account from the comfort of your home. Before opening any digital account, compare the different features such as the online account opening process, minimum monthly balance and interest rate.

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