Digital banking has taken leaps in recent years, with Indian online savings accounts seeing a spike in usage during the pandemic. This was aided by the Regulatory Authority’s push to enable digital verification of accounts. This blog discusses the advantages of digital banking, including ease of signing up, the convenience of usage, higher interest rates/lower fees, going cash-free, 24x7 banking, personalised features, easier bill payments, rewards, reduced black money circulation, and banking in remote locations.
If you're on the fence about opening a digital savings account, it's worth considering the numerous benefits it offers.
Signing up for a bank account used to be tedious. But with new-age banking, signing up is now a breeze. You can do it from anywhere in just a few minutes, by entering your details and verifying your account. Check out this guide for step-by-step instructions on how to open an online savings account.
Opening a fully virtual account is more convenient than traditional banking as it can be accessed remotely from anywhere in the world at the click of a button. It's also faster at processing requests than traditional banking.
Automated processes in virtual banking can reduce certain fees and result in higher interest rates for customers. However, not all online banking services offer these benefits. Fi provides the Federal Bank zero balance savings account with an interest rate of 3.05%.
Opening a virtual account solves the need for cash and is better for the environment. Online-first features like UPIs, mobile wallets, and internet banking solutions allow cash-free payments and save paper.
Traditional banks operate for limited hours and are closed on bank holidays, making it difficult for account holders to visit and make transactions any time of the day or night. Virtual savings accounts solve this problem by providing 24x7 automated banking features through apps.
Unlike typical banks' cookie-cutter features, an online-first experience may offer features like bill payment reminders, personalised budgets, money management, big purchase savings, and so on.
With a virtual account, bill payments are easier than ever before. You can set reminders for your bill payments and clear them in just a few seconds through your mobile banking app. Alternatively, you could also automate these bill payments through online banking apps.
A virtual account offers rewards like one-time rewards or a point system to redeem rewards of your choice. These rewards include points on transactions and discount codes for e-commerce websites.
This is less of an individual benefit and more for the country at large, but as India moves towards virtual banking, it may positively affect the economy by curbing the use of black and counterfeit money.
Virtual accounts in India allow people in remote locations to access banking services, as long as they have a mobile phone and internet connectivity. This is a positive step towards inclusivity for the underbanked.
Virtual savings accounts in India have come a long way and offer a host of features like opening a savings account, creating FDs, starting a SIP, and more. The future of online-first banking in India is exciting and inevitable with a strong virtual banking presence expected soon.
Fi Money offers a zero-balance online Savings Account in partnership with Federal Bank. You can easily sign up for free & open a Savings Account online in 3 minutes. You can also use this Savings Account to safely stash your savings in deposits, earn additional interest, send/receive money instantly, analyse expenses, or budget smarter. If you upgrade to other account plans within Fi — you get access to premium features like Jump, zero Forex, US Stocks, Mutual Funds, etc. & up to 4x rewards for all payments!
Yes, digital banking is completely safe and there are multiple layers of protection provided. However, you must not share your password and OTP with anyone.
Yes, you can access your digital savings account any time of the day, whether it is working hours or holidays.
No. You require an internet connection to access your digital savings account.