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

Best Digital Savings Account

The world has gone digital. And so have savings accounts. Many banks have launched digital savings account to make it easier for customers to carry out transactions. You can open digital savings accounts instantly with PAN and Aadhaar card.

In this article, we will compare the four most popular digital accounts in the country. We will look into the Kotak 811, Axis ASAP, SBI Digital Savings Account and DigiSavings Account. As a digital saving account is different from a regular savings account, the comparison parameters will also be different. Here are the five parameters on which we are comparing the different digital bank account.  

Related article: How Different is Digital Savings Account from Regular Savings Account?

Minimum average balance of digital savings account:

One of the key features of a regular savings account is the minimum average balance. In regular savings accounts, a bank customer has to maintain a specific amount on a monthly basis. The average monthly balance (AMB) varies from one savings account to another. For instance, savings account aimed at HNIs can come with a higher AMB. Moreover, AMB can depend on the location.

However, digital accounts differ from regular savings account. As opening a digital savings account is entirely online, the online savings account introduced by many banks doesn’t have a minimum average balance. This makes it easier for many customers to open a savings account without worrying about maintaining the minimum average balance.

But currently, not all digital savings accounts are zero balance accounts. Axis ASAP, digisavings have a minimum average balance of Rs.10,000 or Rs.5,000. It is to be noted that banks introduced these accounts as zero balance online savings account.

Initial deposit:

When you go to a bank to open a savings account, you may have to deposit a certain sum of money as the initial deposit. It can range anywhere between Rs.1,000 to Rs.10,000. However, many digital savings accounts don’t have any initial deposit. In short, you don’t have to put any money to open this savings account. Axis ASAP has an initial deposit requirement of Rs.10,000. That means that you have to deposit Rs.10,000 in your bank account to open the account. Typically, digital zero balance savings account don’t have any initial deposit requirement.

Debit Card

As digital accounts are virtual accounts, many banks provide free virtual debit cards to their customers. The features of the virtual debit card are like that of a physical debit card. One can make online transactions just like a regular debit card. You can access virtual debit card through the mobile bank app. If you don’t require a physical debit card, you can look at digital accounts that offer a free virtual debit card. Just save your debit card details on your favourite shopping websites to quicker checkout.

Account closure charges of digital savings account

Because of one reason or other, you may have to close one account. You can close these digital accounts as effortlessly as you opened it. Kotak 811 is the only account that does not charge any fees for closing the bank account, whether it is on day 3 or day 300. Other savings accounts such as Axis ASAP and digisavings account have an account closing charge of Rs.500. Also, to close an SBI account, you need to send a written request to the bank.

Video KYC

RBI approved Video KYC in 2020. After that, many banks have introduced video KYC to onboard new customers. To open an account to open a digital account through video KYC, you need to complete the online account opening form and get on a video-based conference with a bank representative. The bank representative will verify your documents. After verification of your documents, banks will open a full-fledged savings account. So, accounts that offer video KYC process make it easier to open a digital savings account as you don’t have to visit the nearest bank branch to complete the full KYC process.

Conclusion: 

If you are looking to open the best digital savings account, you can compare the different savings account on these four factors. Kotak 811 is one of the best digital savings account with no minimum balance, no initial deposit, free debit card, zero account closing fees and video KYC account opening process.

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