Owing to the pandemic and the current era of social distancing, it has become almost impossible to step out for any of your banking needs. Thanks to technological advancements, online mechanisms have made it easy to bank and transact. There is a gradual and unprecedented shift of the urban Indians to transact using their bank accounts digitally.
According to a report by the Boston Consulting Group which used data inputs from social media such as Facebook, the number of urban Indians using online banking systems was at 45 million in the year 2017. Economic experts and statistics specialists who analyze and trends expect this number to grow to more than double by the year 2020.
India is primarily a savings-based economy and if during these difficult corona times, you are looking to open a savings bank account, these are the steps and precautions that you might want to take.
Choose your bank wisely
These are numerous government sector and private sector banks offering the digital savings bank account. You may want to consider the below factors before choosing a bank for your digital savings account.
Private sector banks are offering very high and competitive interest rates on your savings bank account. An interest rate of almost 7% is also available in some variants. Opt for a bank that offers the highest interest rate as you would earn more on your balances
You would need to contact your bank at some point in time if you have a long term banking relationship. Choose a bank that has prompt, efficient, and dedicated customer service. Strong and trustworthy customer services will save you the trouble of going to the branch and resolve your queries online itself
The booming market of digital banking has ensured a variety of options for you. There are specific kinds of savings banks customized for your needs. For example – some banks have a savings bank, especially for women. Hence, ensure you pick the choice that is suited for your needs.
Banks may generally require you to maintain a minimum balance on your savings account. Non-maintenance of this amount may lead to them charging you with a non-maintenance fee. Understand the clauses attached to the savings account you wish to opt for.
Some banks also waive off the minimum requirement in case you open a systematic investment plan or recurring deposit with the same bank for a small amount. Hence, you might want to choose a bank that offers alternatives to maintaining a balance as just a balance in the account is idle cash and investment might help you earn better on your balance.
Once you have considered these factors and decided on the bank where you wish to open the digital savings bank account – listed below is the process.
- Visit the website – Go to the savings account tab on the website of your preferred bank
- Documents – Keep your government approved Identity document, as well as scan ready as some banks, may require you to fill in the details and others might require you to upload the documents
- Type – Click on the type of savings bank account that you wish to open
- Details – You will then be prompted to fill out your details – address, name, date of birth, etc. Remember to fill in these details as per your government approved Identity documents. Any mismatch will be rejected
- KYC and Activation – Once this is done, you might be contacted by the customer representative of the bank to complete the physical verification of the KYC documents – your government approved Identity document as per their internal process and government guidelines
Once done, your account will be active and you can digitally transact!