Digital Savings Account: What to Consider Before Opening One?

After being hit by the COVID-19 pandemic, the Indian banking sector has changed entirely. The emergence of digital banking has led to the satisfaction of the rising need for social distancing. Today, making monetary transactions or even opening a savings account has become easy with the increased usage of digital savings accounts!

What is a Digital Savings Account?

A digital savings account is your secure digital space to keep your money safe and accessible anytime. It generates a fixed interest rate on your savings, making it one of the best savings plan for the short term. This instant savings account is completely digital, so you can open one by simply filling in all the necessary details online.

You can carry out the online procedure from the digital portal of your bank. This fast, secure, and paperless method of opening a savings account on a digital platform is convenient and completely secure!

What are the Benefits of Opening a Digital Savings Account?

This digital way of saving money and earning interest is convenient and hassle-free. Here are several other reasons why opening a digital savings account is beneficial:

  • Minimum Documentation

Opening a digital savings account is easy. All you have to do is go to your bank’s site and see whether they provide this option. Then fill in the necessary details. It is hassle-free as it requires minimum documentation.

  • Zero Balance Account

Most banks nowadays provide a minimum or zero balance savings account. You don’t have to deposit a certain amount to open an account. Some banks may also require you to maintain a minimum balance in the account or pay the penalty for not maintaining the account. But nowadays, many neobanks follow a zero-balance digital savings account model so that you won’t have to pay the maintenance penalty.

  • Online Safety

When it comes to anything digital, people tend to get sceptical about the security it provides. But most online savings accounts are usually safe and secure. Although before opening one, you should ensure that you trust the digital bank you choose. They should follow all the necessary safety guidelines.

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Most banks have tight online safety protocols to save themselves from hackers. However, certain circumstances are beyond their control. Here, you have to be responsible enough to take online safety seriously. Follow these basic online safety tips to save yourself from online frauds:

  • Don’t click on suspicious links through emails or messages
  • Never conduct a financial transaction through unprotected public Wi-Fi connections
  • Keep changing passwords frequently
  • Never share your account username and password with anyone
  • Convenience

Waiting in long queues to open an account or update your passbook is one of the major reasons why physically going to the bank is considered to be tiresome. Today, everyone is seeking comfort and services within arm’s reach. And a digital savings account provides customers with just what they need!

Since everything is operational online, opening a digital savings account is one of the most convenient ways of managing money.

  • Rewarding Experience

Many banks encourage people to open a digital savings account with them by offering exclusive rewards, offers, shopping benefits, and more. This successful strategy helps people decide which bank to choose for opening a high-interest savings account.

Things to Consider Before Opening a Digital Savings Account

What everyone needs to understand about a digital savings account is that every bank will offer different things. Some offer a high interest rate, while others focus on providing a zero-balance experience. Many banks even have minimum maintenance fees, along with chargeable SMS. You need to be clear about your goals to choose which one to go for!

Ensure that the bank you select aligns with your goals and is completely transparent about its safety protocols.

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Author bio: 

Naina Rajgopalan has a thing for numbers and a deep fascination to learn about all things finance. She’s been money-wise from a young age and has always shared her knowledge and tips with those around her. Being a part of the content team at Freo Save, a neobank that offers a 7% interest rate on savings along with benefits such as insurance on balance, safe & secure banking, and so on, Naina stays updated with the latest of what happens in the banking and fintech industries. She has taken upon herself to share her knowledge with readers across all walks of life to help them manage their finances and budgets better, so they can make better decisions while spending, borrowing, investing and saving.

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