Online bank account vs regular savings account — which is better?
An online bank account is more than an online version of your savings account. An online bank account coupled with an excellent net banking service or a mobile banking app can help you enjoy a seamless banking experience. It can help you better access your savings account, transfer funds faster to other people, and apply for loans instantly.
A few salient features of an online bank account include:
- Instant account opening
- Immediate account number generation
- Instantaneous access
- Fast video KYC (Know Your Customer)
- Lucrative interest rates
- Free multiple transfers of funds
- Quick SMS alerts and notifications
How do online bank accounts differ from regular savings accounts?
Banks tend to treat online bank accounts as the online versions of their savings accounts. However, the customer’s banking experience in both cases is entirely different. We’ll note a few differences between the two types of bank accounts below:
- Time taken to open the account
While it can take a few hours to a couple of days to open a regular savings account – depending on the bank issuing the account – instant savings accounts or online bank accounts can be opened in a few minutes.
- UPI facility
A significant difference between a regular savings account and an online bank account is the ease of pairing your bank account with UPI. The Unified Payments Interface (UPI) accounts for transactions worth hundreds of crores in India every month. You can experience UPI’s speed, safety, and ingenuity faster by opting for an online bank account.
- Lucrative interest rates
Certain banks offer additional benefits to customers who opt for an online bank account, such as lucrative interest rates and free funds transfers. For example, IDFC FIRST Bank offers the industry’s best interest rates of up to 6.25% along with a unique feature of monthly interest credits. In addition, you get a Visa debit card with lucrative benefits such as high withdrawal and purchase limits, free personal accident cover, airport lounge access and more.
- Mobile banking app features
IDFC FIRST Bank helps its customers save significant money with various features on its mobile banking app. The bank’s mobile app has tools like One-Swipe Banking and Track Your Expenses. The latter helps customers draw inferences from their previous expenditures to help them save better.
How to save money effectively using a savings account?
Here are a few points to remember before choosing a savings account:
- Consult a savings account interest calculator
A savings account interest calculator like the one offered by IDFC FIRST Bank helps you get a clear idea of your future savings. It also enables you to compare interest rates offered by different banks.
- Opt for net banking / mobile banking
Mobile banking services should improve your banking experience. IDFC FIRST Bank’s mobile banking app has features that help customers learn from their previous expenses to save more. The app also provides quick money transfer solutions such as Auto Pay.
- Choose a bank with a high-interest rate
A bank that offers a high-interest rate can help you make more money on your savings account balance. IDFC FIRST Bank offers competitive interest rates on its savings accounts. Fill out an online form to open an online savings account with IDFC FIRST Bank.
A regular savings account is helpful, but that doesn’t mean you need to give up the opportunity to make more money. Online banking accounts help you save and earn money, boosting your wealth and increasing your purchasing power.Lenovo announces 4th generation Tab M8: A low-cost 8-inch tablet
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