Today, online savings accounts have made life much easier. You can use your online savings account to complete financial transfers, buy various things, pay off bills, etc. all with a few clicks without even having to step out of your house. All you need is a stable internet connection and a laptop or smartphone to complete these transactions. Now let us understand in this article, on how do online accounts differ from regular savings accounts?
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Difference between online Savings Accounts and Regular Savings Accounts
The major difference we could see especially in account opening process. Let us check key differences here.
#1 – Account opening
Opening an account offline differs from the process of opening one online. For the offline method, you would need to visit the bank physically, fill out the application form, and submit all the required documents. So, how to open a savings account online? This process can be completed through your smartphone or even laptop, you don’t need to visit the bank physically. Once that’s done, the bank will also mail you a welcoming kit that contains your debit card, ATM PIN, and account number.
#2 – Document submission
It is important to submit your official documents to the bank if you want to open a savings account either offline or online. While opening regular savings accounts, you need to submit a physical copy of your documents. So, you need to take a lot of time to find the documents and submit them. On the other hand, the online process is much more efficient. All you are required to do is upload a soft copy of the documents like PAN Card, Aadhaar Card etc.,
#3 – Debit card
When you open a savings account offline, you get a physical ATM-cum-debit card. However, it is also important to note that these cards also run the risk of losing. This is where the card offered in the online process solves this issue. If you were to manage an online savings account, you might also get a free virtual debit card in addition to a physical ATM-cum-debit card. You could access your virtual debit card through the mobile banking app. A virtual debit card is useful for things like paying utility bills and shopping online.
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#4 – KYC process
The KYC process is a mandatory step in the process of opening a savings account. In this process, an official from the bank will verify the information on your application form with the documents that you submit. Once the verification is completed, your application will be accepted. Nowadays there are banks that offer even the video KYC process which you can schedule according to your convenience. As an example, IDFC FIRST Bank is one of the banks today that are known for offering the facility of video KYC.
Conclusion: While both offline and online savings account function almost similarly, there are things that online savings accounts offer that are known for being very convenient. One of the best features of online savings accounts is that through these accounts, banking services are accessible to you 24×7. Digital banking services can also be accessed easily from anywhere.
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Thanks for your informative article.In the days of Corona when red zones were there and when physical contact was not advised, online banking came to rescue.But that is restricted to literates and net savvy.Something is better.
Regarding Virtual debit cards,can we do Point of Sale Transactions(POS)when we go to a Petrol Bunk or Shop?
As per my knowledge virtual debit card can be used online only.