What are the benefits of choosing digital savings accounts?

It is seen that most of the features and benefits offered by digital savings accounts and regular savings accounts today are, in essence, the same. How are then these two types of accounts different? The difference lies in the mode of operations. Digital savings accounts adopt a digital approach to empower quick account access, provide seamless services and focus on improving customer convenience. There is a host of benefits for customers opting for digital savings accounts, e.g., instant account opening with an end-to-end paperless process and no branch visits. What’s more, banks like IDFC FIRST Bank offer a high interest rate up to 7% p.a. and monthly interest credits to customers on their digital savings account too. Read on to know more about digital and regular savings accounts and the benefits of choosing a digital savings account.

Key differences between a digital savings account and a regular savings account:
 

Digital savings accounts differ from regular savings accounts in certain important ways:

• The account-opening procedures are different:
  
  

  To open a regular savings account, a customer must visit a bank branch on a working day during working hours. Digital savings accounts, on the other hand, onboard customers through the online KYC procedure that helps them open a bank account from the comfort of their home.

• The eligibility criteria for both categories of savings accounts differ:
  
  

  While anyone can open a regular savings account, a digital savings account can generally be opened by a new customer who does not have any previous relationship with the bank in question

• Customers can save more through digital savings accounts:
  
  

  Digital savings accounts generally charge a lower maintenance fee when compared to regular savings accounts. IDFC FIRST Bank customers can avoid these fees and improve their overall savings in the long run.

• The KYC process for both types of accounts is different:
  
  

  Banks follow different KYC-related procedures for regular and digital savings accounts. While the customer has to complete their KYC procedure while signing up for a regular savings account, the rules are comparatively relaxed for digital savings accounts. Customers can opt for the “minimal KYC” option while opening a digital savings account. However, the customer must complete the full KYC procedure within a year of opening a digital savings account. 

Benefits of choosing digital savings accounts over regular savings accounts
 

Here are the major benefits that digital savings accounts offer to individuals:

• They offer high accessibility to customers:
  
  

  Customers access their digital savings accounts through mobile banking apps. Mobile banking apps help customers access almost every banking service including booking FDs, getting a personal loan, or making investments. IDFC FIRST Bank’s mobile banking app also helps customers automate their monthly payments through the ‘Auto Pay’ option. IDFC FIRST Bank customers can also make quick online transfers through the bank’s mobile app via UPI (Unified Payments Interface), NEFT, IMPS, or RTGS (Real Time Gross Settlement) transactions.

• Customers can save more through their digital savings accounts:
  
  

  IDFC FIRST Bank’s digital savings accounts help customers considerably grow their savings with comprehensive interest rates..

• Digital savings accounts offer higher security and accessibility to customers:
  
  

  Customers who opt for digital savings accounts can access their bank accounts 24/7. Banks ensure that their digital savings accounts be secure and easily accessible to all their customers. IDFC FIRST Bank’s mobile banking app is a safe and secure online platform that helps customers access a variety of banking services from investments to FD accounts.

• Customers can budget better using their digital savings accounts:
  
  

  Digital savings accounts also help customers budget better and better account for their earlier expenses. The IDFC FIRST Bank mobile banking app offers the “track my expenses” feature that helps customers track and analyse their previous expenses to save more money in the future. Using this feature, customers can plan their future expenses by analysing their monthly spending.

Customers who wish to access the banking services offered by their banks in a more secure and convenient manner can opt for digital savings accounts. IDFC FIRST Bank customers can also benefit from other features offered by the IDFC FIRST Bank mobile banking app such as the ‘Auto Pay’ and ‘One-Swipe Pay’ features. 
 

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.