7 reasons why you must switch to an online savings account

While banks in India offer a variety of bank accounts, most young professionals prefer savings accounts because they satisfy their financial requirements. A savings account is a type of bank account in which you can deposit your earnings an unlimited number of times and earn interest.

While there was a time when opening a savings account took time, nowadays this process is quick and convenient. If you are wondering why to open a savings account online, listed below are reasons to do so:

  • This process is easy:

Before digital banking came into existence, the only way to open an account was to physically visit the bank. Nowadays, you just require an internet connection and an electronic device, and you can open an account anywhere anytime. Moreover, another major benefit of net banking is that this process requires minimal documentation. Most banks only require your Aadhaar number and PAN Card for the online account opening process. Also, you can take the E-KYC process from the comfort of your home. 

  • They can help you to safely grow your savings:

Depositing your money in an online savings account is considered one of the safest ways of growing your wealth as it earns you interest. In the savings account, your funds stay safe from the risks of market fluctuations. While most of the time, savings accounts offer low rates of interest, there are some banks that offer a high rate of interest. For example, IDFC First Bank’s savings bank interest rate is 6.25% p.a. in addition, you get the interest paid to your account every month instead of quarterly payouts.

  • Money can be transferred instantly:
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Nowadays, you don’t need to carry cash. It is possible to instantly transfer or receive payments through the bank’s smartphone application. By using an online savings account, you can enjoy banking facilities 24/7 i.e., you can carry out transactions regardless of the time of the day. Moreover, different types of money transfers such as IMPS, NEFT, RTGS, and UPI are available at your convenience. 

  • They are known for offering value-added services:

Another reason to sign up for online savings accounts is that numerous banks provide various value-added services including additional benefits. As a part of value-added services, you can enjoy cashback offers, reward points, and exciting discounts on your expenses. You could earn rewards for carrying out transactions such as bill payments, hotel reservations, booking a cab, ordering food, and many more.

  • Easy access to bank accounts:

The Internet has revolutionised the banking sector and has made it more accessible. Thanks to banking apps, you don’t even need a laptop. You can carry out the banking transaction on your phone connected to the internet anywhere and anytime.

  • They serve as a repository for your monthly income:

Money is easily accessible if you keep it at home, which may result in frivolous spending. A savings account, on the other hand, will encourage you to use it only for needed expenditures. Also, a secure E-banking system is a safer place for your money than your own home.

  • They can help you to pay bills automatically:

Banking apps come with the standing instruction feature. Through this feature, money is deducted from your bank account for paying bills and rent automatically on a set date. So, even if you forget the payment due date, your bills are paid on time.

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Apart from the above benefits, there are several other reasons for opening a savings account online. Moreover, E-banking services are known for making day-to-day banking easier.

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