5 Reasons Why You Should Invest in an Online Savings Account

A savings account is the go-to bank account for most individuals. It is easy to use, earns you interest, and encourages the healthy financial habit of saving your hard-earned money. Digital banking has made it easier than ever to safely park your funds.

Most banks now allow you to access their services digitally from the comfort of your home, at any time of the day. Nowadays, you can even open a savings account online in minutes and manage your finances on-the-go! Let’s look at the five reasons why you should invest in an online savings account.

Easy Account Opening with Minimum Hassle

The days when we had to actually visit a brick-and-mortar branch for opening a bank account are behind us. At present, you just need an internet connection and a device to open online savings account anywhere.

Also, with minimal documentation, the process is pretty straightforward and painless. Most banks only require your Aadhaar number (linked with the registered mobile number) and PAN Card. The initial eKYC process also takes place online, saving you numerous trips to the physical branch.

Safely Grow Your Savings

Keeping your surplus money in an online savings account is one of the safest ways to generate passive income. Banks pay you interest on your savings amount. Your hard-earned money stays safe from market fluctuations and you earn a fixed interest rate on your balance.

A bank usually pays you a percentage of interest multiplied by the amount of money you have deposited in your online savings account. Therefore, instead of letting it sit idle in your home, allow your extra cash to bring in some earning.

Effortless Transfers

You can instantly send or receive payments through your bank’s web portal or mobile application. With an online savings account, you can enjoy digital banking facilities 24/7. So, making free IMPS/RTGS/NEFT or UPI transactions is hassle-free.

You also have the option to link third-party payments applications to your account and enable seamless money transfer. Furthermore, you will receive real-time updates on your deposits and withdrawals. For added security in transactions, you can enable fingerprint banking as most smartphones support fingerprint sensors.

Access to Value Added Services

Plenty of banks offer various additional benefits and value-added services with an online savings account. You can get exciting discounts, cashback, or reward points on your spends. Most good banks give you rewards on bill payments, booking a cab, hotel reservations, food-ordering, etc.

Some trusted banks in the market also provide offers such as attractive interest rates on Fixed Deposit (FD), sweep FD facility and discount on locker along with your online savings account.

Easy Access and Maintenance

An online savings account gives you immediate access to all the essential information. You just have to enable internet banking or access the bank’s mobile app. Also, you don’t need to visit the branch, saving you considerable commute time.

Within a few clicks, you can view your transaction history, bank statements, and balance, among other details. Most banks also issue you an ATM/Debit card for withdrawing cash at ATMs.

Most savings account are low maintenance as you just have to maintain a minimum balance to keep it going. Moreover, some banks do provide you with options to make your online savings account a zero balance account.

Final Thoughts

As you can see, there are a bunch of good reasons for opening an online savings account. Convenience and efficiency are just the beginning. With technology at your fingertips, opening an account online has never been easier.

There is a wide range of options in the market these days. Choose what’s best for your financial needs by evaluating the different offerings and take advantage of digital banking!