How To Start An Online Savings Account With A Bank?

Are you looking for a safe investment alternative to invest your idle funds and earn interest on the same? A Saving Bank Account is the best option for you. Thanks to online mode, you can now open one online at your own comfort. It eliminates the need for you to visit the bank branch to open a Savings Account physically.

However, if this is the first time that you are online Saving Account opening, here are a few essential things you should know:

Opening process

You need to visit the bank's official website where you would like to open the account. Remember that the bank should have provisions for online Bank Account opening. Find the new account opening option on the website and submit the application form. You need to provide your identification proof, address proof, and a few other documents to process your application.

Choose the right account type

Most banks now have many different types of Saving Account to meet different requirements of the customers. When you open one online, ensure that you check the features offered by the different types to make the best decision. There are Savings Account for women, kids, and even senior citizens. Such accounts provide additional benefits.

Getting the account number

After deciding on an account type and submitting the necessary documentation, you can open a Bank Account. You get a unique account number for future transactions. Once your account is functioning, sign up for Digital Banking to start using your account on the go. You need to fill a form with your account number and other personal information for the same. Most importantly, choose a username and password.

Using the net banking portal

Once your account is active and you have received a confirmation, use your account credentials to access your account online. Consider the online account for many transactions. You can do transactions through RTGS, IMPS, NEFT, etc., to pay online bills, open an online Fixed Deposit, transfer funds, apply for a Loan, and much more.

Banking apps

Most of the reputed banks in India also offer mobile apps to enable banking on the go. If your bank has a banking app, download them to access your online account anytime and anywhere. Like an online banking portal, the mobile app conveniently provides different features to meet your banking requirements.

Why are Savings Account unique

Are you uncertain about holding a Savings Account? This article rubbishes off your hesitations. Today, as everyone solely focuses on improving their income, a Saving Account does not receive any consideration. With this account, compared to other investment alternatives like Mutual Funds, Fixed Deposits and Bonds, you do not receive high interest.

Although Savings interest rates are lower than other investment options, it provides many benefits that improve your finances. Here is how the account is unique:

Safety

You need not worry about economic unpredictability when you open a Bank Account. Even if you get higher returns from your stock market investments than a Savings Account, there are risks linked with the stock market investments. Such risks can lead to low returns or even losses owing to economic volatility. Your money with a Savings Account is secure always.

Convenient

It is easy to open and maintain. By going to the branch or the bank website, you can open an Account. You can track your balance by logging in to your Digital Banking Account. Often, the best alternative to save money is a Savings Account. You also can make or receive payments, easily withdraw funds through ATM whenever you want, or transfer funds to other Accounts. Savings Account also gets directly credited to your account.

Emergency fund

You never know when you will face an emergency, be it a medical problem, vehicle concerns, loss of employment, or financial crisis within the family. If you are facing such unexpected financial challenges, holding a Saving Account may be advantageous. Its liquidity facilitates you to access your money on the move.

Auto-debit facility

You can opt for this provision with your Saving Bank Account and comfortably make payments on time. When auto-debit gets set up, the cash gets debited directly from your account on a specific day. Many daily transactions can also get made using banking apps, such as electricity bills, phone calls, etc. If all your transactions are done directly from one single account, life becomes simpler.

Services offered with Savings Account

While not all the mentioned aspects are offered with every Savings Account, but banks ensure to provide most of these whenever you open an account:

• International Debit Card
• Cheque and passbooks
• Net and phone banking facility
• ATM cash withdrawal (from other banks as well)
• Value-added services such as Insurance, discounts, additional facilities to family members, etc.

Why Should You Open Minor Savings Account

One of the important ways to protect the future of your kids is to motivate them to save. You should ensure as a parent that the future of your child is secure. Most parents emphasise that they are saving for their kids. You can educate your child about it in several respects, including buying an Insurance Policy or opening an account through Digital Banking.

As banks allow you to open accounts for minors, you need not wait until your child turns 18 to use banking facilities. To plan their future from the start, open and operate the kids Saving Account.

Following are the benefits online Saving Account opening for kids:

• It shows the importance of money.
• They become disciplined with money matters.
• It helps them remain focused on objectives.
• Thanks to compound interest, they learn new skills.
• Saving teaches them how to save for future expenses.

Factors to consider before you open a Bank Account for minors:

Age

For minors, banks allow you to open two kids Savings Account, depending on your child's age group:

• Below ten years
• Between 10 and 18 years of age

Remember the age of your child before opening the Savings Account. If your child is under 10 years, open a Joint Account, of which the joint holder will be the child and one of the parents. In this case, you assist them in operating the account as it brings about a savings discipline. The account becomes inactive until your child is over 18 years of age, transforming into a Regular Savings Account.

Funds transfer

Check with the bank if you can transfer funds via National Electronic Fund Transfer or Real-Time Gross Settlement or Immediate Payment Service using banking apps when you plan to open a kid's Savings Account. The bank allows you to do so with ease if you want to move money from your account to a child's account.

Spending limits

There is a spending cap on these account types, and it varies from bank to bank. Some banks make it possible for you to spend Rs. 1,000 to Rs. 2,000 every day. When the account opening process gets started, banks issue debit cards. In the kid's Saving Bank Account, the banks often restrict the number of debits you make in a financial year.

How Is A Savings Account Unique?

One of the first accounts we ever open is Savings Account. Whether it is an account we open as a minor with our parents or as an adult, a Regular Saving Account helps inculcate a sense of financial discipline. It encourages us to save money while we are young. Yet, most use these accounts for basic transactions like cash deposit and withdrawal as they are unaware of its uniqueness, which are:

Easy, anytime transactions

The best part about modern-day accounts is they are anytime, anywhere. This attributes to the fact that all banks today offer Digital Banking services. You need to set up your Online Banking account and download the banking app. It lets you send and receive payments quickly.

Bill payments and online shopping

You can use your Bank Saving Account to pay all your utility bills. They get paid in cash, cheque, or online transactions. Use Internet Banking channels to pay for your online shopping orders, eliminating the need for cash. 

Debit and ATM cards

When you open a Bank Account, your bank sends across a welcome kit. This kit includes two things: your Online Banking details and a Debit or ATM Card. Those uncomfortable with online transactions use their Debit Cards to withdraw cash. Use it to shop online, and retail stores and the money gets directly debited from your account. 

Balance maintenance

This is a prerequisite you should know before an online Saving Account opening. Banks always decide the minimum amount to park in the account, failing which you get charged a penalty for non-maintenance. If you hold an account in a public sector bank, you may need to maintain up to Rs. 1,000. 

Private sector banks, meanwhile, require you to maintain a minimum balance between Rs. 10,000 to Rs. 1 lakh. There are also special Zero-Balance Accounts, called Salary Accounts, that do not require minimum balance maintenance. 

Interest rates

The savings parked in your account earn you interest. Depending upon the bank where you hold account, the amount parked, and the balance maintained, you make decent Savings interest rates on them. While the interest rate is not that high, banks still provide a bonus and disburse it once or twice a year. Generally, it ranges between 3.5% to 7%. 

Deposits and withdrawals

There are no specified limits on the money you can deposit in your account. However, banks have a limit on the withdrawal amount and the frequency of withdrawals. You can make up to five withdrawals a month. Also, there is a limit on ATM withdrawals wherein you use your bank ATM and other ATMs three to five times a month. If you use other bank ATMs over the free prescribed limit, you get charged a small fee for the same. 

The Saving Account is famous for these reasons. If operated responsibly, your account serves as the first investment instrument that boosts your corpus.

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.