A Savings Account is a multi-purpose bank account that is not limited to just investing. It allows you to deposit, manage, and transfer your money. It acts as a safe place to store your savings and helps you set aside money for expenses.
When you consider a savings account it allows you to manage your finances from the comfort of your own home. You can easily manage your expenses, save money and time, and access your funds anywhere, anytime!
Here, we will explore the essential factors you should consider before opening a savings account online.
Essential Factors to Consider When Opening a Bank Account Online
- Benefits offered by the bank
Opening a Bank Account Online is not just for convenience reasons; it is much more than that. Many banks offer zero-balance account openings and no minimum balance requirements. They even offer the facility of a free cash deposit, a free passbook, and a free debit card. They allow choosing a single or joint mode of holding as per the financial needs. Internet banking and mobile banking option is available to avail of additional benefits if required.
- Interest rate
Savings accounts offer lower interest rates than other investment options, but it’s still worth checking out the rates. Though some banks offer attractive savings account interest rates, some may still offer 3 to 4%. This is the reason why it is important to consider other factors as well that we are discussing.
- Documents required
There are some documents required to open a bank account online. These documents serve as proof of individuals’ identity. The banks require valid ID proofs that include a PAN card and Aadhar card or other proofs like a passport, voter id card, or driving licence. You will need to fill out the account opening form, which is typically available on the online banking portal. A self-attested photograph and signature/thumbprint are also required for security and authentication.
- Network of branches
Even though we can do most of our banking transactions online, sometimes we may need to visit a bank branch for certain transactions or problems. For example, if anybody wants to deposit or withdraw a large amount of money or wants help with a specific banking request, then they should look out for bank branches near their home to visit whenever they need.
- Account requirements and eligibility
Check out your eligibility criteria before applying for an online bank account. An individual generally needs to be an Indian resident. The age of the person should be above 18 years.
Some banks often require you to have a PAN card if you want to open an online bank account.
- Service charges
Although banks pay you interest on your savings, they also charge for some services. Banks charge for some services such as SMS alerts, transactions, cash withdrawals, account maintenance, etc. It’s important to know and compare these charges before opening a bank account online.
- Credit Facility
Banks offer loans to their customers with a good banking history. They offer loans without much paperwork if you have a positive balance and credit history. Holding a primary Savings Account with a bank can make it easier to apply for loans from the same bank. If you think you may need a loan in the future, you must check the credit facilities offered by banks.
- Customer service and support
Customer service and support are essential aspects of any banking relationship. Look for a bank with 24×7 customer service and can provide the best solution on time. Also, make sure they have strong security measures to protect your account from any fraud. Having access to reliable support during emergencies is essential.
- Terms and conditions
There are many rules and conditions that you need to discuss before applying. These include minimum balance conditions and other mandatory terms. The bank may also change these rules from time to time. You also have certain rights and responsibilities as an account holder. Always ask your bank agent if you have any doubts regarding the terms and conditions.
- Minimum balance requirement
Different banks have different requirements for the minimum balance in their savings accounts. Most banks may not have a minimum balance requirement, but some do, starting at Rs 500 or Rs 1000. It depends on the bank’s policy. So, you are advised to choose a savings bank account online with a zero minimum balance requirement.
- Other digital products
Apart from a savings account, banks also offer a wide range of other digital products that you can avail of. These products include Fixed Deposits (FDs), Recurring Deposits (RDs), loans, insurance, lockers, Mutual Funds (MFs), government schemes, and more. These products can help you achieve various goals.
In summary, opening a bank account online can be a convenient and efficient way to manage your finances. However, it’s essential to consider several factors before making a decision. Every person should compare service charges, customer support, and other offerings of the bank. If you have any questions or concerns, don’t hesitate to seek clarification from the bank’s customer service or a representative. With the knowledge and awareness, you can open a bank account online that meets your needs.