The modern financial landscape is heavily influenced by online transactions. In today’s world, it’s not just giant conglomerates but even small street food vendors who are embracing digital payment methods, making cashless transactions the norm rather than the exception.
That’s why it has become almost imperative for everyone to have an online digital savings account. So how is a digital account different from a regular savings account, and what benefits does it offer? Let’s find out.
What is a digital savings account?
A digital savings account is an account that can be opened and operated online without the need to visit a bank. Most banks allow you to open an online digital savings account almost instantly through a simple online application process.
What’s more, you can also avail of a debit card for your digital account. Banks offer different features with their digital savings accounts, like free ATM withdrawal, the best deals on a debit card, and attractive interest rates; and many such accounts are zero-balance accounts that come with minimal fees and charges.
Online Transactions with Digital Savings Account
Economies thrive on online transactions. Online money transfers can be done to individuals, commerce, other banks, pay bills, etc. And digital savings account lets you perform endless online transactions via multiple routes. Let us look at some of them:
Internet banking involves logging in to your online bank account and transferring money from your account to another with the help of a bank account number and its IFSC code. There are many ways to transfer money via internet banking:
National Electronic Fund Transfer is a one-to-one fund transfer system where you can send money from your account to any other bank. NEFT is not processed in real-time but in batches. The minimum amount is 1 INR, and the maximum limit may vary based on the bank. NEFT cannot be processed on Sundays and bank holidays. For digital savings accounts, NEFT transactions are free.
Immediate Mobile Payment Services is an instant fund transfer system that operates 24/7 throughout the year. It is a convenient system for high-value transactions from 1 INR to 2,00,000 INR. The transactions are processed in real time, and the beneficiary receives the amount in their account instantly. Moreover, most banks charge a small transaction fee for every IMPS transfer.
Real-Time Gross Settlement is a system meant for large-value transactions. These transactions are cleared in real time, and the payee account gets the money immediately. The minimum limit for RTGS is INR 2 lakhs, and there is no maximum limit. RTGS transactions are free when carried out from a digital savings account.
Unified Payments Interface is a payment system that lets you transfer funds without an IFSC code. You can transfer money to another account using your payee’s UPI ID or even their mobile number that’s linked to the bank account. UPI is compatible with many payment applications, making it a convenient form of transferring funds to individuals, paying merchants, paying utility bills, and more.
Your digital savings account also comes with a complimentary debit card that you can use to carry out transactions at merchant websites and other online portals. Most bank debit cards feature excellent reward points, and cashback offers on your online purchases, making them your go-to payment tool.
In today’s banking scenario, convenience and benefits play a significant role. A digital savings account offers you the best of both. With their endless free online transactions, online digital savings accounts are quickly becoming people’s favourite mode of banking.
By providing banking services at your fingertips, digital accounts take customer service to a whole new level. So don’t get left behind in this digital revolution, and get yourself an online savings account today!