The covid-19 pandemic has changed the way India transacts. For safety and other various reasons, Indians are now preferring digital transactions more.
It is expected that by 2025, 71.7% of total transactions will be done digitally in India. So, it looks like digital payment and banking are the future of India.
It has also been observed that India’s young generation is inclining more and more towards digital banking. You might also be thinking of opening a digital savings account. So, here are the things that you need to know before going for it.
What is a digital savings account:
“It is a paperless, fast, and secure way of opening savings account digitally”.
In recent years, it has gained importance due to its fast and hassle-free facilities.
It provides virtual debit cards for doing transactions.
The process for opening a digital savings account is easy and hassle-free. It requires minimum documents.
Instant money transfer:
It gives the facility of instant money transfer.
No minimum balance:
For opening an account, no minimum balance is required.
Interest is earned on the retained amount in the account.
The interest rate varies from bank to bank.
It also gives the facility of a zero-balance account, where no minimum balance needs to be maintained.
Generally, interest rates are lower for it.
It provides the facility of nominating a person as a nominee so that in case of uncertain events, he/she can take the benefit.
Through your digital savings account, you can invest in mutual funds.
It also provides good customer support. If you have any queries or doubts you can ask for help here.
In some cases, 24*7 support is provided.
Tracking of expenses:
You can track any month’s expense easily with the help of it.
Free SMS and e-mail facilities are also available in some cases.
Things that need to be considered before you open an account:
Most importantly, you should know your goal or purpose for opening a digital savings account. Different accounts provide different features and benefits. So, before opening an account you should carefully see all the options which are available and then choose the most suitable account which is in alignment with your goal.
Banks do charge various fees like balance maintenance fees, SMS charges, ATM card charges, Returned cheque fees, etc. These can vary from bank to bank. So, this needs to be checked too.
In the case of some banks, it is mandatory to maintain a minimum balance otherwise penalties are levied. So, before opening an account, its features and requirements should be properly read and understood.