6 Features Of Opening A Saving Account

A saving account is an efficient way of saving funds for future expenses. A saving account will offer an interest rate which is slightly higher than the rate of inflation, for keeping the real value of money stable throughout the years. Any individual can go for an online saving account opening by just visiting the official website of the financial institution.

A lot of modern financial institutions that offer a saving account are providing these accounts which are packed with great offers and quick links for paying bills and making quick transactions. Interest rates offered on a saving account will differ at different financial institutions.
A saving account will help an individual cover any type of unexpected expenses which may arise in the future. Holding a savings account will help improve financial stability as the funds in the account have limits on the number of withdrawals made against the account. A bank will customize a saving account depending on the general usage an account witnesses in a lifetime.

A saving account is a type of account which is opened at a bank or any other financial institution which earns a moderate interest on the balance maintained. A saving account is essentially opened for putting aside some funds which are not required immediately. A bank will place restrictions on the number of withdrawals which can be made from the account every month. Interest rates which are earned on the savings account are determined based on.

Some of the features of opening a saving account are listed below:

1. As the name suggests, a saving account is a safe place for storing surplus funds obtained by the customer. These surplus funds help in building a nest egg for any type of unexpected situations which may arise any time in the future.
2. Every saving account, whether held at a nationalized financial institution or any other financial institutions, is always safe.
3. A balance in the saving account earns interest. While the interest rate may not be as high as other bank deposits, as the funds are not withdrawn on a regular basis, it continues to increase the funds in the account.
4. A saving account is provided the account holders some level of liquidity. Financial institutions usually provide account holders with debit or ATM cards which can be used for making a certain number of withdrawals from their savings account.
5. A lot of financial institutions provide a saving account with different insurance covers including personal accidents and death.

An added benefit of a lot of saving account holders is that a lot of financial institutions offer great discounts on the locker rental facilities for customers who maintain the minimum quarterly balance.

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. 

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!