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Disclaimer: This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. The Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Article. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from the Bank. The Bank, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein. Tax laws are subject to amendment from time to time. The above information is for general understanding and reference. This is not legal advice or tax advice, and users are advised to consult their tax advisors before making any decision or taking any action.
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Online Savings Account is easy to open. You can open an Online Savings Account instantly by filling the online account opening form available on a bank’s website or the bank’s mobile banking application.
According to the RBI guidelines, banks can open a Savings Account instantly for customers through the Aadhaar-based One-Time password (OTP) verification process. The bank accounts opened through the process is termed as Online Savings Account or Digital Savings Account. This regulation has made it easier for individuals to open Digital Savings Account from their home, without visiting a bank’s branch. The entire account opening process is online and you don’t need to fill any physical forms. You can open your account within a few minutes and start using your savings account instantly. Many banks have introduced digital savings accounts to ease the account opening process for their customers. One of them is Kotak 811, a digital zero balance savings account from Kotak Mahindra Bank.
Eligibility Criteria
Most banks offer digital savings account to new-to-bank customers or customers that don’t have any existing relationship with the bank.
General eligibility requirement:
Documents needed:
Different banks have varied eligibility requirements.
In case of Kotak 811, Politically Exposed Person (PEP), Non-Resident Indians (NRIs), institutions and organisations cannot open the digital account.
Features of Digital Savings Accounts
It is easy to manage a digital savings account. You can avail banking services and facilities like online fund transfers, service requests, investments etc.
Here are top 5 features of Digital Savings Accounts:
Paperless Process
You can visit the bank’s website or download the mobile banking app to open your Digital Savings Account online, without leaving your house or visiting the bank’s branch. The online account opening process is completely paperless. You don’t need to upload any scanned documents either. All you need to do is type in your Aadhaar number, PAN and other details in the online account opening form.
Monthly Average Balance (MAB) Requirements
The monthly average balance requirement is possibly the only aspect of savings account that is not popular among banking customers. However, with online savings account, you don’t have to worry since online accounts have varying Monthly Average Balance (MAB) requirement. While The MAB of other digital savings accounts can range up to Rs.10,000, few Digital Savings Accounts like Kotak 811 don’t have any monthly average balance requirement.
Debit Card
Debit Card allows you to withdraw cash from ATM, make online payments, and pay for your purchases at shopping malls or supermarkets and digital savings accounts offer Debit Cards as well
Online Savings Accounts have gone one step ahead. Depending on the Bank, customers can get a virtual debit card and/or physical debit card. Customers of digital savings accounts such as Kotak 811 receive free virtual debit card instantly and can also request for a physical debit card. Kotak 811 customers can find the details of their Virtual Debit Card such as card number, CVV and other in their mobile banking app and can request for an 811 physical debit card through the app.
Online Transactions
This is the age of online transactions and Digital Savings Accounts offer multiple ways to transfer money online like UPI, Mobile Banking, Net Banking, WhatsApp Banking, Scan & Pay etc. that lets customers transfer money without visiting a branch or an ATM. Kotak 811, in particular, lets its customers easily transfer money online with no charges. The ease of online transactions plays an instrumental role in going cashless.
Attractive Interest Rate
Banks pay Digital Savings Account holders interest on the money maintained in the savings account, similar to a regular savings account. Although interest rates change from time to time, interest rate on savings account is still an advantage.
Benefits of Online Savings Accounts
Besides the regular features of Online Accounts, there are several benefits of Online Savings Accounts. Here are top three benefits of Digital Accounts:
Instant account opening
Gone are the days when people had wait for days to open Savings Account. Now, you can open an Online Savings Account instantly. Just keep your PAN number, Aadhaar number and Aadhaar registered mobile number handy to open the account within a few minutes. After your account is open, you can deposit money from your other savings account into your new digital savings account and start making transactions online.
Different products offerings
Online Savings Accounts offer much more than a bank account. It is a gateway to different banking products and solutions such as Fixed Deposits (FD), Recurring Deposits (RD), Sovereign Gold Bond and more. Most online savings account holders can avail different products online through net banking or mobile banking. You can book Fixed Deposits (FD), open Recurring Deposits (RD) online to earn a higher interest rate than a savings account to save money for emergencies or financial goals.
One example of such an offering for Kotak 811 customers is the Dream Different Credit Card. After opening their account through video KYC customers can book a fixed deposit of a minimum amount of Rs.15,000 and apply for an 811 #DreamDifferent Credit Card. This Credit card against a fixed deposit can help in building credit history or repairing poor credit score.
Auto sweep facility##
Most banks provide auto sweep facility to their customers. Under this facility, banks can convert the funds above a specific limit into a fixed deposit automatically. As a result, money lying idle in the savings account can earn a higher interest rate than the savings account. You can opt for this option and give instructions to the bank for FD creation. Auto sweep facility is liquid and banks can transfer your money into your savings account whenever you need.
How is an Online Savings Account different from a regular Savings Account?
Features
Online Savings Account
Regular Savings Account
Account Opening Process
Open account online through website or app
Visit the nearest bank branch and submit filled up physical form with documents and photographs
Time needed to open the account
Instantly
After three to five working days
Minimum average balance
Nil
Rs.10,000 onwards in metros
Debit card
Virtual and Physical debit card
Only Physical debit card
Things you should know before opening an Online Savings Account
Since accounts opened through the e-KYC process differ slightly from regular savings accounts, here are a few things that you should keep in mind before opening an online bank account.
Open Kotak 811 account
FAQs on Online Savings Account
Are Digital Savings Accounts safe?
Digital savings accounts are safe. They are full-fledged Savings Accounts equivalent to regular savings account and are safe because the banks are mandated to follow the guidelines set by the Reserve Bank of India (RBI).
How do I withdraw money from my Online Savings Account?
You can withdraw money from your instant savings account through your physical debit card, cheque book, cardless withdrawal facility and transfer money online.
You can also visit the bank branch to withdraw cash.
How can I add money in a Digital Account?
You or anyone else can transfer money to your Digital Account with the help of your account number, IFSC code or UPI address. You can find these details in the email sent to your registered email address and on the mobile banking app of your bank.
What is the minimum balance requirement for an online savings account?
While few online savings accounts introduced by other banks may have minimum balance requirement, Kotak 811 Account don’t have any minimum average balance requirement.
What is the difference between a normal Savings Account and an Online Savings Account?
Online Savings Account lets you open a Savings Account instantly with no paperwork or bank branch visit.
Digital Savings Accounts are e-KYC accounts and have certain restrictions on maximum balance and total credits. Before the full KYC process, customers can’t keep a balance of more than Rs. 1 lakh in their account. Additionally, the total credits can’t exceed Rs. 2 lakhs in a financial year. Regular savings account don’t have these restrictions.
Online Savings Accounts are valid for 12 months. You have to complete the full KYC of the account to continue using it or upgrade the account. Regular Savings Accounts are valid for a lifetime.
How do I choose a Digital Savings Account?
Many Digital Savings Accounts are available these days. Keep the points shared below in consideration when you’re choosing a Digital Savings Account for yourself:
Disclaimer
*Giving Aadhaar details is voluntary.
##This Feature is only available for 811 Full KYC customers. By signing up for this feature, customer agrees to the following Terms & Conditions:
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