Digital Saving Account is a better option to startup. If you are looking to start your financial journey, then a digital savings account can be a great platform. For many people, a savings account is one of the first financial services they obtain. You can open a digital savings account with any leading commercial bank, Indian Post Payment Bank or co-operative banks. However, before opening an account, there are various things that you should keep in mind:
1. Type of Digital savings account
Different organizations offer different types of bank accounts. It is up to your needs and requirements what you choose. There is an account, especially for women, and these bank accounts come with the privilege of skill-building programs and many other courses that enable women to be self-sufficient. Different types include regular savings, privilege account, salaried accounts and many more. Make sure that you apply for the one that fulfils your needs.
2. Plan your child’s future with kids digital saving accounts
Encouraging children to save money is one of the ways through which you can secure their future. With this help, you can teach your children many things like the value of money and why one should save them; saving money can also teach them how to plan for future endeavours.
3. Save tax by digital account opening
The amount you deposit in a savings account is not taxable, but the interest you will gain on this amount is taxable. Knowing how your digital saving account interest is taxed can help you in saving a lot in tax. As per section 80TTA, the interest earned on your Digital saving accounts is deductible up to Rs. 10,000 per year.
4. Net banking and mobile banking
After opening a digital savings account, your provider will provide you with net banking facilities. It makes it easier for you to conduct and track transactions. You can send and receive payments by using your account online. You could also download an app to make it convenient.
5. Cross product benefits
Many banks offer their savings account customers cross-product benefits. It means that if you have a savings account with the bank, you would be able to receive some unique advantages and offers, in case you choose to buy some product.
How to open a digital savings account
Most of the organizations only ask for your Aadhar card and PAN card number for the process. Due to this, opening a digital account is paperless and requires less time than other accounts. You can open a digital bank account in a few steps.
- Open your provider’s website or mobile app and click on the open account link/ button.
- Keep your Aadhaar card and PAN card nearby.
- After submitting both, you will receive an OTP on the mobile number linked to open an instant bank account.
- After that, add your personal information like your name, education qualifications, address and other details.
- Once all the details are filled in, your digital savings account would be opened, and you would be able to access it using an app or a website.
The paperless application process and KYC are primary reasons for the popularity of digital savings accounts. Many financial institutions are stressing contactless services in the post-pandemic setup for both customers and banking staff’s safety. A digital savings account is a great way to achieve financial stability without compromising on personal safety
Going for banks that offer online saving account facilities will eliminate the need for you to visit the bank physically. Apart from the interest rate, make sure that you know all the offers and benefits of the account to make an informed and educated decision.