Benefits Of Opening An Online Savings Account
Posted: Jul 22, 2019
The banking sector is making it easy for customers to complete their transactions day by day. There is hardly anything you cannot do – from balance transfers to online payments; everything can be done without ever having to set foot in the bank. You don’t have to worry about wasting time standing in long queues at your bank branch. Now-a-days, you can also open a digital savings account online, without visiting the bank. This quick and efficient process allows you to manage your savings on the go. Here are some of the best known benefits of online savings accounts.
You earn better interest on your savings: Whether we open a savings account online or at the bank, we tend to check the interest rates offered by the bank on the sums parked in the account. However, the edge of online savings account opening over a regular bank account lies in the fact that you actually get a better interest rate on your savings, which in turn allows you to grow your savings at a faster rate. While most banks generally offer 3.5% to 4% interests on your savings in case of general bank accounts, you can earn interests of 6% to 8% on your online savings account.
You don’t have to pay any account maintenance fees: Whether you have a public or private sector bank account, you are charged an annual maintenance fee by the bank. The fee is directly deducted from your account without any warning, once a year. The fee is charges in lieu to the services offered to you; whether it is depositing or withdrawing money. In case of online or digital savings accounts, you are not charged any account maintenance fees. This is attributed to the fact that banks do not offer any additional services to maintain your account. At best, you can get help by reaching out to their customer service helpline, which is generally an interactive voice response service or IVR, with no human interaction.
Funds can be accessed easily: Your online savings account comes to your rescue when you need funds at any given time. Sure, there are ATMs from where you can remove cash but with your digital savings account, you can access your savings at any time, simply with the help of your mobile device. You can send and receive money into your account easily on the go. You can also transfer large sums of money instantly between different types of bank account as well. Moreover, you can check your account balances and use your online account for online shopping as well whenever you want.
Automatic deposits can be set up: Saving money routinely is not as easy as it sounds. It requires discipline. One of the greatest benefits of online savings account opening is that you can set up weekly or monthly automated deposits from your regular bank account to your online account easily. By opting for automated fund transfers, you reduce the temptation of spending money elsewhere or making impulsive purchases. Since, you earn better interest in these accounts, you will be motivated to save more and thereby grow your corpus at a quicker pace. This is one of the best ways to optimize your savings.
Before you begin the process of online savings account opening, research the interest rates offered by the few banks in India that offer this service and open your account in a bank that best meets your requirements.