What is Digital Savings Account?

Do you remember the time when you were a child, and your piggy bank was your only trusted depository for saving the little amount of money you used to have? If yes, you grew old, and the pattern changed, and so did the country's banking system. There are so many advantages of online savings accounts in a bank or financial institution you can open one in the present times for better financial security.

The banking system has been evolving with the growth in technology over the past two decades. One of which is a digital savings account. If you are wondering what is digital savings account then it is the new generational update for all our banking necessities. A digital savings account permits the clients to open, maintain, and make transactions through their bank accounts with the help of their smartphones and laptops.

It is highly eminent in the current COVID-19 situation faced by people in the country and across the globe. It saves the consumer time, money, and labor by bringing all their banking resolutions to their fingertips

Benefits of Digital Savings Account?

A digital savings account is a savings account that comes in handy for people of all age groups. To understand more of its benefits and advantages refer to the pointers below.

Good Interest Rates

Being idle with almost nothing to do is never an innovative idea. The same situation is true for the funds you have saved in your savings account. Hence, rather than just sitting in your digital savings account, the funds you have saved can earn a good interest and grow.

Banking at Fingertips

As the name suggests, a digital savings account can be managed from the comfort of your home and all the transactions can be taken place from your smartphones. Banking at fingertips symbolizes that it will be a banking process that can be handled by just a smartphone.

Lower maintenance charges

While you open a digital savings account you get an added advantage of maintaining less charges in your bank account. Many banks these days provide online savings accounts at zero balance.

Safe and secure

The digital savings account is a safe and secure banking system for savings funds. The whole management of your account is under your supervision with the safety of the bank making it one of the safest and most secure processes of banking in the present generation.Easier to manage personal finances

We all have been in a situation where we wanted information about our money but were lazy to go to the bank, digital savings account solves that problem like a pro. All you have to do is log in to your account and seek whatever information you are looking for. Hence, making it an easy and quick banking solution.

Digital Savings Account Vs Regular Saving Account

You must be wondering about the differences that a digital savings bank account holds when compared to a regular savings account. However, both have their own sets of advantages. The list that determines the differences between what is digital savings account and regular savings account is as follows -

Accessibility

A Digital Savings Account provides its account holders with comprehensive access to all the benefits and features from anywhere at any hour of the day. Nevertheless, to look after or operate a Regular Savings Account, the account holder must visit the bank branch within working hours and days.

Different types of Debit cards

Online or Digital savings accounts are associated with Virtual Debit cards that are used for online transactions of any kind and have no charges. In this case, you can do transactions without carrying a plastic card. Besides this, the regular Savings accounts have normal physical debit cards that need yearly maintenance charges. These charges are commonly not present on the Digital Savings account.

Eligibility

Clients who do not have any current association with the bank can open digital savings accounts. It means that the people who are the existing account holders of a savings account or have taken a loan in the past may not be able to open a digital savings account in the bank. In contrast, there are no such restrictions set on a regular savings account.

Bank Charges

All online transactions in Digital Savings account like NEFT, IMPS, RTGS and UPI are free of cost. Therefore, you can make as many payments or transfers as you want without expending money on the processing fees. In contrast, transactions in a Regular Savings account, in general are not always free of cost and might attract fee charges exceeding specific transaction limits.

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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.