The advent of the internet has made everyday life more convenient, and the banking sector is no exception. Gone are the days of long queues and longer bank statements. Digital savings accounts are completely hassle-free and universally accessible, as long as you have an internet connection. The digital account opening process is also very smooth and linear and, in most cases, can be done online. While these accounts are quite convenient, a little bit of research can help you choose your purpose’s best digital savings account.
Here are some tips to keep in mind before opening a digital savings account.
A digital account can also be an investment with the correct interest rates. Ensure you get the best deal; a slight change in the interest rate can become significant in the long run. The interest rate should be an essential factor while choosing a digital savings account for yourself. While this might seem quite obvious, many financial institutes and banks offer different interest rates on digital savings accounts.
One of the most appealing attributes of digital savings accounts is accessibility; your funds are always within your reach. With an excellent digital account, you should be able to transfer funds to and from your account at all times. There are various methods of fund transfers like UPI, NEFT, etc.
No Minimum Balance
Unlike conventional savings accounts, most digital savings accounts do not require a minimum balance. This helps you with hands-on cash and helps you maintain a fully functional account at zero balance. This is especially handy for students and people without a regular income. You also get other benefits like free quarterly e-statements and credit card transaction history.
The most profound benefit of a digital savings account is 24/7 accessibility from anywhere. You no longer need to visit a branch to make transactions or check your account balance. All of it is now just a swipe away on your phone. Apart from the convenience, no maintenance cost is also a huge incentive. You can also use conventional methods like debit cards to access your account.
Conversion to Regular Account
While there are no reasons to switch to conventional banking but if you wish to do so, you can easily convert your digital savings account to a regular one by visiting a branch or through the post. The transition is very convenient, and you can avail all benefits of a regular account after the conversion.
Digital savings accounts are the antithesis of traditional banking methods. Everything is at your convenience, at the touch of a button. They are straightforward to create and manage since they require no minimum balance or maintenance fees. However, it would be wise to carefully consider all options before picking one that suits your needs. Like traditional banking options, you must read the fine print before settling on an account that works for you.