A digital account is managed entirely online, through a mobile app or a web-based interface, without the need for any in-person interaction. There are several types of digital banking accounts offered by fintech companies that operate exclusively online, without any physical branch locations. Here are some of the popular ones.
Different Types of Digital Banking Accounts
- Savings Accounts – Savings accounts are, possibly, the most popular type of digital banking account and help you save money while earning interest on it. A savings account can be held individually or under joint ownership and can be used to pay bills, utilities, shopping, etc.
- Zero Balance Account – A variation of the savings account is the zero-balance account. In most savings accounts, a certain minimum threshold of balance needs to be maintained to continue availing of the bank’s services uninterruptedly. The failure to do so may result in the bank levying some penalties. However, in a zero-balance account, there is no minimum balance requirement. This account is ideal for students and freshers starting out in their careers.
- Salary Account – A salary account is aimed at salaried professionals and is specifically designed for employees to receive their salary payments from their employers. Based on the company’s policies, a salary account can come with various types of digital banking services such as zero-balance requirements, free ATM withdrawals, and lower-than-usual banking charges.
- Business Accounts: Business accounts are meant for small and medium business owners and other entrepreneurs. They can be used to manage their finances, remit salaries, receive dues, pay bills, and process vendor payments.
- Deposit Accounts – A deposit account has a fixed term and interest rate that is higher than a regular savings account. These accounts are opened with the purpose of goal-based savings for the short or long-term like taking a vacation or buying a bike.
- Investment Accounts – While fixed and smart deposits help generate a higher income than standard accounts, exposure to equity is proven to build long-term wealth. This can be done by indirect exposure to equities through the means of mutual funds. An investment account allows you to invest regularly through a systematic investment plan (SIP) and enjoy the power of compounding interest on your investments.
Why use digital banking?
Now you know the various types of digital banking accounts that you can opt for. Why digital banking, you ask? Well, here are some of the benefits you can hope to enjoy.
- Convenience – entirely digital banking experience with no fuss and hassles
- Attractive interest rates – the costs saved by not having physical branches are passed on to customers in the form of attractive interest rates on savings accounts and deposits
- Lower fees – the above-mentioned benefit is also visible in the form of lower banking charges than most traditional banks
- All-in-one interface – savings, investments, deposits, and expenses can all be easily tracked and comfortably managed through a single app or website
Want an on-the-go savings account? Check out Fi! With Fi Money, you can go online & open a zero-balance savings account in minutes. No paperwork & no hidden fees! Working professionals in India can sign up on Fi Money in less than 5 minutes. Fi, alongside its RBI-licensed partner Federal Bank, showcases the future of secure, digital banking. It can help you save up, invest wisely & analyse your expenses. In short, Fi's an online banking solution that helps you get smarter with your money — in a fun & uncomplicated manner.
Frequently Asked Questions
1. What is an example of digital banking?
Fi Money, for instance, is one of India’s leading digital banks offering a wide variety of digital banking services. These include goal-based savings in fixed and/or smart deposits via FIT Rules, zero-balance savings bank accounts and salary accounts. It doesn't end there, you can grow your money by trying out direct investments in mutual funds and US stocks, and use the help of an AI-powered analyser to help manage your money wisely.
2. How many digital banks are there?
As reported by the Business World, there are over 35 digital banks operating in India with Fi Money and Jupiter being two of the leading institutions in the segment.
Curious? Read more
- Neo Banking vs Digital Banking
- 10 benefits of Digital Banking in India
- Digital Banking vs Online Banking - What are the differences