How To Open Savings Account Online?

That the world has become digitally connected. Today, there is nothing you cannot do online. From online shopping to market investment, everything happens online. Banks also offer Digital Banking facilities, through which you can send and receive money in your account within seconds. 

The banking sector has moved forward and started enabling customers to do online Saving Account opening. Here are the steps for doing so:

Research 

The provision to open an online Bank Account is relatively new. Not all banks offer this facility. So, before you can open one online, research about the banks offering this facility. A simple search helps you find banks that enable online account opening. Most private sector banks offer this facility, while only a few in the public sector currently have this provision. 

Decide account type

Once shortlisted, visit their website, and choose the Saving Account you want to open. Most banks allow you to open different accounts, including Joint, Minor, Senior Citizens, Women, Zero-Balance, and accounts under various government schemes. Choose the type you wish to open and then move to the next step. Note, you cannot open a Current Account online.

Account opening form

After selecting the type, fill the account opening form. This is a basic form where you add details like your name, address, contact details, PAN Card number, and account type you intend to open. Affix your passport size photograph on the desired section and submit soft copies of all the documents listed. These include your ID and address proofs. According to Government rules, submit a photocopy of your PAN card. 

Remember, select the Online Banking facility while filing the account opening form. Review the form and submit it

Bank evaluation 

Once submitted the form, the bank assesses your application for opening the Saving Bank Account. This process takes between seven to 14 days. If your account opening request gets accepted, the bank informs you about the same through the e-mail address you mentioned on the account opening form. They ask you to complete the e-KYC process

Complete e-KYC process

Get done with the e-KYC formality where you provide a photocopy of your ID, address and PAN card and self-attest it. Once your e-KYC details are submitted, the bank assigns your account details in the mail. You get a login ID and password to your account, through which you can access and conduct other financial transactions. The bank also sends your account opening kit featuring your chequebook, passbook, and ATM and Debit Card via post.

Online accounts are ideal for modern-day customers. If you find them convenient and comfortable, you need not opt for traditional means anymore.

What You Should Know About Zero-Balance Savings Account

We all need a Bank Account for parking your savings and operate other financial transactions. A Saving Account is the first account we open, through which we gradually build our life savings. People mostly have joint or minor accounts with their parents, which gets converted into a regular account by 18 years. However, a Zero-Balance Account is the first individual account you open. 

Here are some essential facts about the Zero-Balance Account:

Meaning and Definition

This Saving Bank Account, also called a Salary Account, is what employers open for you. The employer typically ties up with a specific bank to offer them and deposits your monthly income in it. The account gets credited with your salary on a specific date of every month. Besides your income, the employer deposits variable pay such as monthly incentives, year-end bonuses, cash rewards, and more in the Zero-Balance Account. 

Why Zero-Balance?

This account is called Zero-Balance Savings Account because there are no restrictions on withdrawing the sums parked. You can remove every rupee deposited by your company without worrying about maintaining an average monthly balance (which is a prerequisite for all other types of online Bank Account). However, check your bank’s daily withdrawal limits before removing the entire sum parked. 

Basic facilities offered 

Banks typically offer a host of facilities, like those provided with a standard account. For instance, you get a chequebook, passbook, and ATM or Debit Card. In most cases, banks offer an instant kit while opening such accounts. You also receive your Net Banking details in the welcome kit. Set up your Digital Banking account, post which you can access online facilities through facilities like NEFT, IMPS, RTGS, etc.

Additional facilities offered 

Every ATM or Debit Card comes with additional services, over and above the general facilities provided. For example, you get a Debit Card with higher withdrawal limits or a high daily shopping limit. You earn extra rewards and cashback for every transaction via Debit Cards. If you draw a higher monthly income in your account, the bank provides access to facilities like fuel surcharge, free airport lounge access, free movie tickets, and so on. 

What to do if an employer does not offer Zero-Balance Account?

Most companies that are relatively small do not have the facility of a Zero-Balance Account. However, suppose the employees wish to do an online Saving Account opening for salary deposits. In that case, they can approach a bank offering the same with relevant documents that include their income and employment proof. Log in to your preferred bank with your offer letter and your most recent salary slips. The bank also asks for a recent letter from your employer validating your designation and monthly income. Once opened, you can share your account details with your employer and start enjoying the facilities that come with the account

What is a Personal Loan EMI Calculator?

When you fall short on funds, borrowing is the only means. Amongst the many credit options, a Personal Loan remains the most sought-after. The reason for this is the minimal paperwork, instant processing, and collateral-free nature. It also lets you finance multiple needs. Moreover, lenders do not monitor its usage, resulting in liberty. 

Despite the flexibility, it is still a financial responsibility. You must repay it in equated monthly instalments. Hence, this is one of the primary things you should consider before opting in. If you are unsure of it, using an EMI calculator is the best way to decide. It helps you choose convenient loan terms with accurate estimates. Learn about it in detail to utilise the instrument aptly:  

Components: There are three key variables involved in the EMI calculation. They are the principal amount, interest rate, and loan tenure. They have correlated effects, and selecting them wisely is essential to increase loan affordability. Let us understand how it works: 

1. Principal amount: It is the borrowable amount that you repay along with interest. They are directly proportional to the EMIs. It means a higher loan amount results in a higher EMI and vice versa. Lenders usually sanction up to Rs. 25,000 as loan. It is subject to variation based on your eligibility. So, make sure to check the same before entering the variable to get accurate results.
   
   
2. Interest rate: This is the percentage charged on the principal borrowed. It influences the overall loan cost. Lenders have specific parameters for finalising the same, which they pre-adjust in the Loan EMI calculator. Hence, you get to select the rate and compare their offers.
   
   
3. Loan tenure: Unlike other components, the loan duration inversely influences the EMIs. A longer period leads to lower EMIs and vice versa. However, it is worth noting that a stretched tenure reduces the instalments but increases the loan cost. Hence, you should choose it after careful deliberation. 

Computation: Entering these variables in the EMI calculator online gives you instant results. It includes the break-up of the total payable amount for better understanding and shows a segregated figure for the monthly EMI, principal portion, and interest amount. This way, you get a precise idea of repayment distribution. Some tools also represent them through graphs, charts, and an amortisation schedule. 

Benefits: This is a free-to-use tool that lets you estimate the loan burden for informed decision-making. There are no restrictions on using the Personal Loan EMI Calculator. Hence, use it as many times as you like to try different possibilities. It also does not require your details except for the mentioned components. It enables you to plan your finances and manage EMIs with banking apps.

What To Remember When Picking The Best Savings Account For You

With so many Savings Accounts available, each catering to different needs, it gets tough to choose one that suits you the best. So, how to figure out which Saving Account is best for you? Following are some aspects to think about before deciding on the ideal account for you. While your demands and the characteristics are not a perfect match, start by examining the following:

Interest Rates

The Savings interest rates are the most important aspects to consider. The Reserve Bank of India (RBI) deregulated the interest rate system in 2011, allowing banks to set the rates at their discretion. Banks provide different rates on their account, which is approximately between 4% to 6.25 % yearly. Because the rates are conditional, this is the case.

Minimum Balance Criteria

Before you open a Bank Account, make sure it is a Zero-Balance Account or if there is a minimum balance to maintain. If the money deposited falls below the minimum amount, the banks generally issue a fine. If you are unsure of satisfying the minimum balance requirement, the Zero-Balance Account does not demand such. You can open this through banking apps.

Online Access

Check to see if the bank provides good Digital Banking services. In today's world, banking from home is the preferred option. Therefore, use your phone or computer to do basic operations like checking your account balance, moving funds, or opening accounts like Fixed Deposits or PPF.

Service Charges

Sift through the terms before the online Saving Account opening to see any fees linked with it. You have the option of ignoring costs for features that you use infrequently. Is there a fee for transferring money to the account in another country? Is there a monthly limit on free ATM withdrawals? Is there a limit on free online transactions you make with your bank?

When your account balance falls below the mentioned amount, the bank charges you an administrative fee. If you are sure, you can keep up with the minimum amount and opt for a bank that does not charge you for it.

Debit Card

Banks offer a slew of freebies when you open Saving Bank Account, including a free chequebook, Debit Cards, and discounts on groceries, restaurants, and movie tickets if you use the card, among other things. Examine whether these freebies are appropriate for you. It does not matter if you get these freebies or not if you have minimal need for dining or grocery discounts.

Things You Should Know About Debit Cards

The way we do things today vastly differs from the earlier days. Almost everything is getting replaced by technology. From ordering food to grocery shopping, you get to do all the mundane tasks online. Banks realising the importance of the same offer banking services on their websites, kiosks, and banking apps. 

A similar digital revolution was created with the introduction of a Debit Card. You get it when you open a Savings or Current Account. It does more than withdrawing money. It is now helpful in making online transactions with ease. While it offers convenience, you should know some essential aspects to use it properly. 

Fees: Banks offer enough flexibility to the card usage convenience. However, they still have some charges as they do for your accounts. It includes ATM fees for using non-bank automated teller machines. So, check for the norms on the same and plan your withdrawals carefully. Another prominent fee is for overdrawing or exceeding the free transaction limits. 

These details are mentioned on their website. Make sure to read them when you apply for Debit Card online. It also helps get clarity on any other additional bank-specific charges you might have missed. 

Offers: Digital banking offers convenience to both individuals and merchants. It reduces their overhead costs. They need not appoint a cashier or manually record transactions. Hence, they extend rewards to you for it. These include cash backs, vouchers, coupons, gift cards, etc. The same is applicable for shopping online and making bill payments. If you feel like you are missing out, you should apply for Debit Card. 

Security pitfalls: Your card comes with a chip and protection through a personal identification number. It also alerts you about each transaction. Still, being careful is crucial as anything is possible online. Most fraudulent practices become successful because of our negligence. Make sure always to hide your PIN. Also, verify each site you visit for either getting an online Debit Card or using it. 

Instant debit: Unlike Credit Cards, these cards access funds directly from your account. As a result, in most cases, debit happens instantly during payments. It is just like using your cash but digitally. Therefore, keep your spending in check and shop with caution. Make it a practice to review your transaction records regularly via banking apps. Also, pay heed to alerts you get on each payment. 

Uses: Internet banking has flourished in recent years. It has brought all banking activities to your fingertips. Hence, every other purchase or payment is doable 24*7 without any hassle. It involves paying peers, making bill payments, shopping, booking tickets, retail purchases, etc. But one thing to remember while using your card is not to store information.

What Are The Features Of Digital Banking?

Technology caused the biggest shift in the banking sector over the years. It changed the way they engage with customers and each other. The shape of established retail banks is changing, driven by the challenge of fast, focused digital new entrants capturing the market. They made processes and applications convenient to access for everyone worldwide.

Digital banking is the digitisation of all traditional banking activities and programmes historically available to customers when physically inside the branch. It includes money deposits, withdrawals, transfers, Bank Account management, financial product applications, loan management, bill payments, and other account services.

Features

Digital banking in India is accessible on PC, smartphone, or tablet. It is also far better than visiting the bank branch. There are several features you enjoy by adopting this method.

Online banking

It provides you with the luxury of banking anytime, anywhere. Website services offered are available 24*7. To facilitate online use, banks provide online banking apps with a host of high-quality technology solutions to make the banking experience easy and fast. Some services include account summary, transaction history, checking account statement and balance, online payments, and fund transfer.

Personal finance planning

There is lots of competition in the banking sector. Hence, they come up with advanced websites and processes to ease online Saving Account opening. Some features include loan calculators, premium calculators, financial planning tools, investment tools, budgeting, forecasting, and tax preparation. It becomes simpler for you to select the Bank Account and calculate the interest rates.

Mobile banking

It is a service provided by a bank or financial institution, allowing customers to conduct financial transactions remotely using a smartphone or tablet. Unlike internet banking, it uses software or an app provided by the financial institution for this purpose. Mobile banking is usually accessible anytime.

Unified Payment Interface

Nowadays, you make transactions from your mobile phone from any location. Thanks to the integration of UPI and online banking solutions, customers transfer money between accounts easily. UPI is an instant real-time payment system developed by the National Payments Corporation of India facilitating inter-bank transactions directly to the Saving Account.

Phone banking

It is famous for people with a primary phone without a data connection. The services include SMS, missed call, and USSD banking. Those who lack an online Bank Account use them from anywhere. They are free services offering cashless transactions.

Digital wallet

Mobile wallets are popular too. They are the best technological innovations and allow you to pay directly from your smartphone. Millions of people use them for payments. Some popular options are PayTM, MobiKwik, JioMoney, State Bank Buddy, etc.

The Procedure To Transfer Money From The UK to India

Funds are a source of living worldwide. You earn money to secure your future and fulfil your expectations while finding several growth opportunities in professional fields. Indians travel to foreign countries to live a bright future and secure their goals. You never forget your responsibilities towards your family and cultural values, even in a foreign land.

Several Indians travel to this country each year and improve their living standards. While you reside in the UK, you find several options to transfer money from the UK to India. The funds help your family in an emergency and for fulfilling urgent requirements.

Bank transfer

The convenient option to send money to India is banks. With the promotion of benefits of digital banking, most Indians own a Bank Account. Your recipient accesses the money from an authorised ATM or visits the bank to collect money.

Money agent

Sending cash is one of the quickest ways of money transfer to India from the UK. You need to meet an agent, hand over the cash to transfer abroad, and provide the recipient and sender details. The receiver collects it from a local agent. One of the things to consider is the size of the agent network in India. Since the receiver collects the cash personally, having a broad network is an advantage.

Mobile wallet

The majority of mobile phone users in India use a digital wallet to manage payments. It is an app you download on your phone which works similar to a physical wallet. It allows you to store money, pay, and send money directly to another person’s wallet or Bank Account. When you transfer money to India, the cash is readily available for the receiver to spend, pay bills, or withdraw.

Reasons to transfer

There are plenty of reasons you transfer money using your Bank Account or international money transfer operators. In India, it helps you pay for the rent of your flat or property. Additionally, you pay the tuition fees of your child and renew investment premiums periodically. Your family meets the necessary expenses without borrowing funds from others.

Weddings in India are a grand occasion. You initiate an online money transfer to India to help your family pay for the wedding expenses without running into debt. Since it is a crucial phase, you ensure it is memorable and pleasant. You prevent your family from facing financial burdens and reduce their worries.

Reducing costs

When you transfer money from the UK to India through your Bank Account, you pay a fee. If you also consider the exchange rates, the costs add up. Hence, find ways to reduce these fees and achieve superior exchange rates to save money while securing your transfer.

Always consider the time taken to reach the recipient, the convenience, and network facilities, among other factors, while transferring funds.