Understanding The Difference Between Checking And Savings Accounts

We all need Bank Accounts to keep our money safe and optimise it rightly. You can select from different accounts, including Checking, Savings, and Salary Accounts. The decision to open a Checking and Saving Account depends on the purpose and the level of accessibility required.

To grasp the distinction between a Checking and Saving Bank Account, understand the meaning of both.

What is Checking Account?

This gets used for paying your daily costs. They are simple and do not have any restrictions on withdrawals. You can use it to pay bills, make online purchases, and carry out other routine operations. When you open this account, the bank offers a Debit Card, chequebook, and a passbook. Use the Online and Mobile Banking features to access your money from anywhere. Meanwhile, a Checking Account does not provide much interest.

What is Savings Account?

This lets you save money and build your capital by depositing funds regularly. It is a place where you can place funds that you do not require. Savings Accounts, unlike Checking Accounts, have a few limitations on how they can get used. For example, you can only withdraw money from banks and ATMs many times.

Your Savings Account comes with a Debit Card, passbook, chequebook, and Internet Banking, much like a Checking Account. However, unlike the Checking Account, the Savings Account pays out interest semi-annually or annually on deposited cash.

Difference Between Checking and Savings Account

Account Fees

Most transactions carried out through Checking Account are subject to a fee: ATM, overdraft protection, online access fees, etc. A Savings Account, meanwhile, is free of cost online. A bank only charges you if you exceed your money withdrawal limit or fail to meet the bank's minimum balance criteria.

Transaction frequency

Do at least one transaction monthly if you have a Checking Account. Your bank charges you a monthly maintenance fee if you do not comply. If you have a Savings Account, make a transaction once every six months to keep it active. The bank classifies your account, and the Debit Card associated with it becomes dormant if there is no activity. You can use a banking app to make sure the account is active.

Interest pay-out

The most notable distinction between Checking and Savings Account provides interest rates. Checking Accounts normally earn little to no interest from banks. You get interest on your deposits in a Savings Account. The Savings Account interest rates vary between banks and get decided mainly by the type of account you open and the amount you deposit.

Factors To Consider While Installing A Mobile Banking App

Usage of mobile banking apps is growing as it provides ease, flexibility, and speed while processing the transactions. Most of the people in India are doing away with traditional banking and adopting online banking.

Almost every private sector banks and PSU banks have a mobile banking app to do banking transactions on the go. It removes the requirement for a computer, laptop and physical visit to the bank to do banking transactions. Once you install the app on your smartphone, you can carry out all banking transactions as per your convenience.

Consider the following factors while installing mobile banking apps –

Simple to use

One of the factors to consider while evaluating a mobile net banking app that it should be simple to use. They should be user-friendly and easy to use. The navigation must be uncomplicated and have concise labelling.

Secure

Security should be on the list while assessing mobile banking apps. They must have security with two-factor authentication. If possible, banking app should run biometric authentication.

Multiple payment alternatives

The best app should have various payment options such as NEFT, IMPS, BHIM UPI payment, and QR code payment. It facilitates payment using the mobile app quickly.

Conventional facilities

Mobile app should offer conventional banking facilities such as card block, cheque book request,  PIN generation, balance inquiry, ATM card issue etc.

Biller details

The app should have a feature of biller registration and remembering biller or beneficiary details while doing a transaction. All transactions via the app should be smooth and free.

Track finance

The app should have the feature to let you track your finances effectively. It is advantageous if the app gives a dashboard view showing your income and expenses.

Notification and alerts

All alerts and notification must get promptly updated in the mobile notification centre. The mobile app should have a facility to turn off notifications.

Suggestions for using the app:

Using mobile banking app provides ease and convenience, however, it has its own security risks. If you are using an online banking app here are few ways that will surely help to secure yourself from threats –

Update your mobile banking app

Always have an updated version of the app with new features, bug fixes and security fixes. You should keep it updated as and when new version is available in the market. It is a good idea to give the app permission to install the latest updates automatically.

Do not use a public Wi-Fi network

The public Wi-Fi network is risky as it might be infected with a hidden virus that can access valuable information from your device. Thus, use public Wi-Fi network while accessing mobile net banking.

Avoid storing or sharing your login credential

Avoid storing or sharing your login credentials such as username, password or pin in the handset. Saving login details while logging to the app is a big no. It will lead to significant security threats.

Use of biometric

It is sensible to make use of biometric login security. It assists in securing the mobile banking app from being misused.

Clear data regularly

Ensure to clear data stored in the application regularly. It will prevent leakage of sensitive information. However, once you clear data, it will also remove the settings for the application, and ask you to reset all settings.

Do not save sensitive information

You should not keep any confidential information in your banking apps such as credit card or debit card details, CVV or net banking password in your mobile app.

What Are The Features Of Mobile Banking?

With the world moving so fast, everybody is always on the move. But, the urgency of conducting financial transactions can come up at any point which may completely disrupt an individual’s plan for the day, as they will have to visit the bank for conducting the financial transactions. However, this is a story of the past, with the advancement and latest in technologies, an individual can conduct all of their financial transactions through mobile banking. Mobile banking is a convenient way of conducting financial transactions without any problems.

 There are some features of mobile banking apps that make the process of banking through mobile phones easy and convenient for customers. Some of the features of mobile banking are listed below:

1. One of the most significant benefits of mobile banking is that an individual can access the features of mobile banking at any time. There is no need for an individual to go to a bank or an ATM and wait for the bank to open to check their account balance, transfer money, pay the bills or even see the account statement. An individual can conduct all of their banking transactions through mobile banking. Fund transfer transactions may complete when the bank is open, but an individual can check the account balance or get account statement irrespective of time or day. 

2. A financial institution understands that all of their customers do not have access to the internet, and this is why they offer mobile banking services to their customers over SMS and USSD. An individual who owns smartphones and has access to the internet can download and use the financial institutions mobile banking app, and others can use the mobile banking SMS and USSD services. A customer should use the right SMS format for availing the SMS banking service and the right prefix for USSD services. 

3. A customer’s bank account and the set of personal information that they have provided will remain totally safe if they use mobile banking. A bank provides the individual with a set of login credentials that they can use for signing into their account and carrying out the transactions. The login credentials are provided to the individuals securely and since they are the only one who knows the login ID and password, their account is always safe. A lot of banks allow an individual to enable two-step verification, where they can only carry out the banking transactions. If an individual enters the One-time passwords sent to their registered mobile number. 

A common misconception that individuals have is that if they want to avail the mobile banking services, it will cost them a lot. However, it is the contrary, mobile banking services are provided for free by the financial institutions. An individual will not need to pay any type of extra charges for registering to mobile banking, unlike ATM transactions where they will get a limited number of free transactions, an individual can check the account statements, balance or pay their bills as many times as they want.

5 Advantages Of Mobile Banking Apps For Banks And Customers

Operating financial activities has become easier today, thanks to mobile banking. You can transfer funds, requests for cheque books, passbook, apply for loans, create savings account, etc. with a click of the mouse. People swear by these banking apps as they are built by the banks or mobile application’s best in-house team.

With the number of m banking users increasing by the day, they have done away with long-standing queues and unwanted rantings of the bank representatives.

How did banking apps gain prominence? 
Online banking date backs to SMS alerts and customer care. Gradually, it turned to SMS banking in 2002. In the same year, almost every bank launched their mobile banking apps. It contained all the facilities that one would have to otherwise complete by visiting the local branch. Since, banking apps have been nothing less than revolution.

Following are the reasons why more and more people are inclining towards banking apps:
1. Availability: In case of cash transfer of funds to friends or family members for emergency purpose or otherwise, you can do so immediately. Mobile banking is available 24*7. Some apps also have in-built query system in place that clears your doubts anytime, anywhere.

2. Time-saving: A mobile banking app manages your finances without interrupting your day-to-day activities. You can pay your credit, utility, and existing EMIs instantly. You also have the facility to automate your payments on predetermined dates. This avoids debts and default.

3. Infrastructure costs: Banks save on infrastructure charges as they do not have to build more branches for people to visit. With all the facilities available at the tip of your finger, customers gain satisfaction in real-time.

4. Safety: One of the reasons why people do not opt for m banking is the safety concerns. Most of these issues will not exists if the measures are taken from the users end. Customers should avoid using their app in public spaces as fraudsters can hack the password and username in open area easily. All banks use encryptions that protects users’ financial information. OTPs and password-protected apps have made the task easier for customers today.

4. Control: You are on cruise control the moment you switch to mobile banking apps. You can track your finance and gauge your financial status. You do not have to worry about fraudulent activities as layers of security protect banking activities. In case your account is on the brink of lowering, you receive notification on SMS and e-mails. You can also monitor debit and credit card activities when you have to send money to the beneficiary. 

Top Mobile Banking Apps You Should Use

Mobile banking is an offshoot of internet banking. It made its foray into the Indian economic scene way back in 2002. Till then bank transactions through your phone simply meant SMS banking. You can carry out every possible bank and financial transaction through mobile banking. It eliminates not only the need to visit a brick and mortar bank branch but also you do not have to own a computer or a laptop to experience internet banking.

ICICI Bank was the first bank in India to introduce mobile banking and today every nationalized Indian bank gives you the facility of mobile banking. Here are four top-notch mobile banking apps in India-

1. HDFC Bank Mobile Application:

This app allows all HDFC account holders to go over their account details and transaction history. You can pay your bills and make credit card payments. You can customize the My Menu tab and this will display the most commonly used services. You can also download the Hindi version of this app, which is also available in a LITE version. 

2. Axis bank’s Axis Mobile Application

It allows its account holders to carry out a volley of functions and services. You can avail of the usual services like funds transfer and checking your account information. Additional services include scheduling a credit payment for a date that suits you, converting credit card payments to EMIs, deactivating debit cards, setting a cap on debit card payments or block a credit card. This app allows you to create a Favourite List that features 10 of your most frequent transactions. This app will also direct you to customer care services. 

3. DBS Bank’s Digibank app

This app too offers all the usual array of banking services that you can avail of from the comfort of your home. Its chief attraction lies in the fact that it offers ironclad security. Therefore, you need not worry about data theft. Another good thing about this app is that it is very user-friendly and hassle-free. One time passwords and security tokens are bypassed. Moreover, the app uses automatic authentication to keep all your banking data safe.

4. SBI Anywhere Personal Application

Anywhere Personal is just one of the many internet banking apps on offer from SBI. This app is available in both English and Hindi. You get updates on your balance sheet, and you can access deposits and withdrawals and look at your bank details with your mPassbook. Its mCash feature lets you send cash to a mobile number or e-mail id. You can also pay bills and premium for your life insurance policy through this app.

Mobile banking apps have ushered in a new technological era in India and have benefitted millions by allowing them to carry out banking transactions without on the go or from the comfort of their homes. You should definitely try these banking apps if you have not done so until now.

5 Reasons Why Online Banking Is Important Today

Online banking has become a common phenomenon. You can check your account regularly, pay bills on time, transfer funds with ease, open an account and much more. Almost every bank offers the facility. It has become easier and convenient to manage our finances. You can also get your queries answered online as banks have a unique system for the same. Precisely why the banking industry is soaring to new heights every day.

Some reasons why online banking is on the rise today are: 

• Protection: One of the preconceived notions regarding internet banking is security. We tend to conduct online transactions with the help of a data, be it at home or away. And sometimes in public places as well. So, the public WiFi can assist the fraudsters to lift your banking details easily. In order to do away with such mishaps, banks have incorporated certain safety measures in place such as the one-time password. It helps the websites to identify the user. 

• Accessibility: One of the major reasons why people are heavily relying on banking online is because of its easy access. Be it home or work or travel, you can bank at your fingertips. You need a stable data connection, and you can enjoy all sorts of banking services. Also, users need not stay in front of their computers to conduct any transaction. Thanks to mobile banking apps, you can bank anywhere and everywhere. 

• Hidden charges: The best part about banking online is that it is free of cost. You only require a bank account and customer ID and password for internet banking. You can move funds from one account to the other without paying any penalty. However, SMS alerts do incur a small fee. You can neglect the same as the bank notifies you via e-mail. 

• Convenience: Online banking is highly convenient. You can eliminate long standing Moreover, there is a mobile banking option offered by almost every bank nowadays. You can check your balance on the go before making any last-minute purchase. 

• Monitoring account: You also have the benefit of checking multiple accounts. You can access real-time expenses which enable you to arrive at an estimated monthly budget. In fact, tracking your account on a frequent basis will deny any misdealing as banks cannot look after every account manually.

With so many benefits at the offing, it is difficult to opt out of the online banking facility. Make way for smoother transactions!

E-Wallet Vs Net Banking – Which Is Better?

We are living in a digital world where everything, right from our groceries to paying utility bills to finding a plumber to ordering food, can be done using your smartphone or the internet. And for all this, you require a decent bandwidth. Banking, too, is not a stranger to the online world. Today you can open and access your savings account, send/receive money instantly, keep track of your transactions, get bank statements, alerts, etc. in a matter of minutes.

Indians are spoilt for choices when it comes to digitalisation, right from digital wallets like Paytm to mobile banking to net banking. You can use any of these methods and enjoy the benefits mentioned above. So, which one should you opt for?

What is internet banking?
It is a medium where you can conduct all your traditional banking services online. No more long queues and no lengthy paperwork. Several banks have their mobile banking apps to alert you about your finances on the move as well. Internet banking also offers you 3 additional internet fund transfer services to make your life simple and hassle-free:

• National Electronic Funds Transfer (NEFT)
• Real-Time Gross System (RTGS)
• Immediate Payment Services (IMPS)

Apart from net banking, you also have smartphones to assist you.
What are digital wallets?
Also known as an e-wallet, is where you can save your funds securely without using your bank details such as debit or credit cards. It is the fastest mode of transaction and does not require you to maintain a minimum balance, unlike the savings account. You can purchase anything from a grocery store to buying air tickets using an e-wallet app. For these apps, you will have to create your account. You can also set a secret PIN to disallow any fraudulent activities. You can then use the internet banking facility to move funds from one account to the other.
Some of the other features of an e-wallet and net banking are:

• Transaction limit: When you use a digital wallet, you are allowed to transfer an amount only up to INR 20,000 as per RBI directives. However, through internet banking, you can move an amount as much as INR 10 lakh using NEFT/RTGS/IMPS method.

• Usage fees: Digital wallets do not charge for using their services. However, bank withdrawal fees are a part of the app. On the other hand, internet banking does not charge for any such services unless you are transferring high-value funds.

• Rewards: One of the biggest benefits of e-wallets is that you get n number of deals and cashback offers. Some of the banks are connected with these digital wallets. So, you can avail of credit/debit card rewards through them. 

• Usability: If you have a decent WiFi connection, both the digital app and net banking can be used easily online. The good thing about these mediums is that you can access these at home or workplace.

In this digital era, it is difficult to make a judicious choice. So, go for the option that is suitable for your needs.

Net Banking – 6 Valid Reasons You Should Use It

There is absolutely no doubt that the internet has made the entire banking process smooth sailing. For bank customers, internet banking is like having your bank’s branch open all the time; whether it is late in the midnight or a bank holiday. It is a service that can help save your time, money and energy. In fact there are innumerable reasons why customers should opt for this mode of banking. Here are 6 valid reasons why you should consider net banking.

It’s easy and convenient: Net banking makes it easy for you to manage your account at any time you like. All you have to do is fill a form and ask your bank to activate this facility on your bank account. As long as you have a laptop, smart phone or tablet with internet, you can get access to all your bank accounts at any time.

You can bank on the go: Mobile banking is designed to ensure that a customer has no trouble reaching his/her account at any time, even on days when there are bank strikes. You don’t have to rush to the bank to check your balance every time; whether you are waiting in line at a shopping mall or before you have to make a purchase.

Say goodbye to long lines in bank: Almost everything that could be done at the bank branch can now be done online. Depositing money from one account and transferring it to another, applying for loans, or checking your bank balance for instance. If you are not sure about a service, you can either call your bank’s toll-free number or use the on-line chatting service that answers any doubts about banking solutions.

Pay your utility bills online: You no longer have to go to the closest telephone or electricity bill payment centre. Just use the net banking facility to pay off all bills. What’s more you can even recharge your DTH and cell phones and pay those bills online as well. You can also set up automatic recurring payments for your phone, electricity bill, rent etc., to avoid any late charges, in case you are out of town.

Review your account activity at any time: The facility also comes in handy whenever you want to review any activity in your bank account. For instance, you don’t have to rush to the bank to see if cheques have cleared. You can check if there is sufficient balance to pay an EMI and transfer the amount into your account at any time to avoid any potential overdraft fees.

Get important notifications: Along with internet banking, you can sign up for e-mails and text message alerts to receive important notifications regarding your transactions and balances. You can get a notification for every transaction; whether money is debited or credit to your account, bills are paid or balance limits need to be maintained.