6 Savings Account Charges To Consider Before Opening A Savings Account

A savings account not just inculcates a saving habit but is also useful for emergency purposes. However, many banks have limitations on the number of withdrawals. The volume of transactions made on the account comes with a fee. These charges vary from bank to bank. Sometimes, they vary depending on the type of account as well.

You should be aware of the mentioned charges before you open a savings account:

• Non-maintenance of balance: This is one of the most common penalties that banks levy. You receive interest depending on the minimum balance you maintain. These charges are usually minimal. For a regular savings account, the fees are anywhere between INR 100 to INR 350 per month. On the other hand, the premium account has higher charges. It can go up to INR 600 per month. So, carefully consider these charges before choosing the savings account.

• Cash transaction charges: Every bank allows only limited cash transaction. If you cross that limit, you have to pay the penalty. Most banks allow only five free cash transaction per month. Beyond that, you have to pay the necessary costs. Some banks have also placed caps on the value of the cash transaction per month. Premium accounts involve a higher limit on a cash

• Cheque book fee: Although online transactions are trending now, some places still accept only cheque as a means of finance. A standard cheque book, which banks offer for free at the beginning, contain 20-25 cheques. If you order a new one, you have to pay a minimal amount. If you have premium savings account with a high average balance, you need not worry about cheque book issuance charges.

• Debit card costs: When you open a bank account, you are given a welcome kit along that includes a debit card. So, banks levy issuance and maintenance charges as well for the same. Sometimes the costs change depending on the services the banks offer. Certain premium accounts provide free regular debit cards.

• NEFT & RTGS charges: The two most preferred mode of transactions in India are NEFT and RTGS. NEFT has no lower limit on fund transfer whereas RTGS has a limit of INR 2 lakh per transaction. However, the movement of funds is faster under RTGS and gets done real time, on an account to account basis. Banks have specific charges in place regarding NEFT and RTGS. Some banks waive off the costs for premium accounts.

• Cheque return fee: If the cheque issued bounces back, the concerned bank levies return charges. The return cheque charges will be higher than the ones released by the third party.

Before you open a savings account through app, remember these additional charges.

5 Reasons a Banking App Is Preferred

Mobile and internet banking is becoming popular around the world. As the number of smart-phone users increases, more and more people prefer using apps for many reasons. Using a banking app to carry out financial transactions is now a necessity rather than a luxury. Moreover, as customers become more tech-savvy their expectations become higher. Banks which cannot keep up to their customers’ expectations usually lose out over competitors. Digitalisation has revolutionised financial technology and the best banks make the most of what technology has to offer. Here are some reasons why using an app is preferred over other options:

Easy to Use: The primary reason for customers to switch from traditional banking processes to using apps is, ease. An app provides a more engaging and seamless interaction between the customer and the bank. With a simple swipe or a tap, you can make bill payments, transfer funds, apply for products and make investments. No longer do you have to wait in long queues to open an account, an app facilitates instant bank account opening.

Accessible: There may be some customers who still prefer visiting a physical bank branch. There are, however, millions who expect 24/7 services. With the use of internet, the world has become smaller and financial transactions have become more complex. With differing time-zones and demographics, people cannot afford to wait for regular banking hours to begin. With a banking app, millions of customers can carry out banking transactions at any time and from anywhere.

Better Mobility: A few decades ago, customers who travelled frequently had to change their bank accounts based on the location. Now, with an app, your bank moves with you. No longer is there a need for closing and opening accounts, you can simply access your account with an app.

Paperless Transactions: Using an app does away with the need to generate endless and unending piles of paperwork. Traditional banking practices involve plenty of documentation for any process. Which also means clutter and inventory to deal with. You can now carry out any banking transaction, even open a paperless saving account!

Real-Time Transactions: Transactions through a banking app occur instantly. Be it checking your account balance, or more complex transactions like opening fixed deposits, all these take a few minutes.
Customers expect information on their finger-tips, be it computers, mobiles or any other smart device, information needs to be immediate. To keep up, banks need to continuously ramp-up their technology.

Internet Banking vs. Banking Apps: The Difference

The Indian digital users have become smart and sharp. They prefer mediums that are accessible on the move. Regarding the banking sector, they want services which are swift and convenient. With the digital world continually improving, banks ensure to offer products to customers that not just satisfy them but also keeps up with the latest tech trends. Precisely what internet banking and a banking app provides.

Online banking has made the tasks for customers simpler and easier. But which of the two is better?

Internet banking:

Before the net banking app entered the market, internet banking was the go-to mode. Customers earlier used to visit the bank branch personally, wait in the never-ending lines and complete their banking chore. With the onset of net banking, customers could sit at the comfort of their home or office and access their account, transfer money to other accounts, make credit card payments, set up of a mutual fund, loan repayments and much more.

Internet banking requires a customer ID and password to utilise the facilities mentioned above flawlessly. Internet banking does not make a person wait or requires them to carry cash in the wallet. All that people need is the login credentials.

Mobile banking:

With banking industry becoming more and more tech-savvy, banks have started rolling out their apps. The banking app allows customers to use the services such as transferring funds, viewing account, receiving e-statements, etc. irrespective of the time and place. Also, banking apps provide information on the nearest ATMs and add recipient payees. A decent 3G/4G connection suffices for mobile banking.

Characteristics of internet banking and a net banking app Internet banking Mobile banking app Enter the bank's portal using customer ID and password to operate your finances Download the app from authentic sources like Google Play Store or iOS. Customers can set a PIN for the secured transaction Internet banking offers two modes of money transfer: NEFT and RTGS. Where NEFT works on a timely basis, RTGS provides real-time facility It is a 24*7 and 365-day medium. Some banks also deliver virtual assistance to clear the doubts of the users on the spot Internet banking offers similar services that one could find a local bank branch A banking app improvises their strategies and provides innovative services to keep their apps user-friendly   The digital age of banking sector began through internet banking Mobile banking keeps up with the trend. Some banks have already started launching smartwatch app, especially for the business-oriented people

To sum up, net banking and mobile banking are two sides of the same coin. While the screen sizes change, banking services remain the same in both the mediums.

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.

Top 4 Digital Banking Apps In India

When financial transactions were carried out through SMS in 2002, the concept of mobile banking started in India. Right from checking your account statement to making a bill payment, everything is done by just a click of the mouse/button. Internet banking was already aiding those who found no time to visit the bank branches.

A banking app has made it more accessible and convenient for the users. Almost every bank and non-banking financial companies (NBFCs) have a mobile app.
Following are some of the front-runners in the digital banking app category:

• DBS Digibank: Want to join the #unbankit revolution? Then Digibank is your go-to banking app. DBS through their Digibank services offers a plethora of facilities with the most crucial one being opening an account without any paperwork, signatures or visit to the bank. All you will require is an Aadhaar or PAN card to open a digisavings Also, get all your bank queries answered through their virtual assistant that is available 24*7. It also comes with high safety standards and is available for download on all Android as well as iOS phones.
   

• HDFC Bank: This mobile app allows you to view your account summary, transfer funds, make all kinds of bill payments, etc. Users can also customise the ‘My Menu' tab where all the essential services are in the offing. The HDFC banking app is available in Hindi as well. They also have a ‘LITE’ version which makes it compatible with those using lower internet speed. However, it does not contain all the features that the regular app contains.
   

• ICICI Bank’s iMobile: ICICI bank’s app enables the users to open fixed deposits and recurring deposits. You can also manage your insurance schemes with ease. You can also locate the nearest ICICI bank ATM, move cash using UPI medium,
   

• Axis Bank: Another leading game changer in the digital banking app category is the Axis bank’s axis mobile application. Apart from the usual fund transfer and summary of account statement, you can also schedule your credit card payments. You can also convert your payments to EMIs. Also, Axis bank allows you to close your debit card and set a limit on purchases using a debit card. The axis bank app is also social-friendly as you can tweet feedback. In case of any query, you can also request for a call with the customer care.

Make your decision wisely and opt for a banking app that suits your requirements. Apart from these apps, banks are also launching smartwatch apps to assist you with finances in a secured manner.