For many months, John Doe had been planning to open a Canara bank account. However, owing to his work commitment he was unable to visit the bank during the Canara bank timings. After months of delay, his colleague suggested John Doe open a Canara bank account online.
While he was aware of the availability of the online route to open a bank account, lack of trust in the online mode made him delay. But on constant suggestions for the online mode, he downloaded the app to open a new bank account with Canara bank. Upon viewing the process, he could not believe the account opening process just took five minutes, and he was done.
While he had opened an account online, now the next difficult task was, to begin with, online transactions using the net banking platform. For his, John Doe’s son helped him. He walked him through the online banking services and soon in a week John Doe had transformed thoroughly into a tech-savvy individual who not just trusted the online mode of making transactions but also preferred to make all his transactions through the online route.
This is the magic of opening an online bank account. If you are one of those like John Doe, here is a stepwise guide using which you can swiftly open an online bank account with your preferred bank. However, before this let’s discuss what is an online savings bank account.
What is an online savings bank account?
An online savings bank account is a savings account that can be opened and managed online. To understand this better, you need to take a trip back to the past. If you are right now in your 30s-40s, you might recall a time when you were required to pay a visit to the bank branch physically to fill out the savings account application form. Or if you are younger, you may ask your parents about the same.
They will enlighten you regarding all the struggles they faced to fill out the deposit slip for depositing the funds into the account and how when they required some amount from the bank account, they had to again fill out the withdrawal slip to access the money.
With an online savings bank account, you can let go of all such cumbersome processes. Note that, you can open a savings bank account through the online platform today from the convenience and comfort of your home.
With an online account, you can simply transfer money, pay bills, open a recurring deposit or fixed deposit account, make market investments, and pay taxes without the need for going anywhere physically.
Now there’s no requirement to stand in long queues, no need to wait and no need to take an off from your work or opt for the pay cut route to visit the bank for your financial transactions.
So, you see, banking today has become very easy. You just need to have a net banking or mobile banking account and all your online transactions can be done in seconds.
This means, if you have an account with Union Bank, you do not require visiting as per Union Bank timings to make the financial transaction. You can simply slip into the Union net banking account and conduct your online transaction with ease from the comfort of your home or office.
Also, ensure to have a good internet connection to make the transaction online quickly. However, you may have this question, “How does online savings account opening function?”
Read on to understand.
A guide on how you can open a new bank account through the online mode
India today has nearly 20 private banks, 12 public sector banks and many NBFCs. Also, the networks of neo banks are growing day by day. The procedure to open a bank account through the online route differs slightly from one financial institution to another.
However, there are specific basic steps that you as an account holder seeker can factor in to select the best account for yourself.
These include the steps below.
Step 1. Select your banking partner
With the digital banking revolution under way, you can open online savings account with many Indian banks. You must take some time and research well for the best options available as per your budget and your service requirement. Here are some of the important factors you must ensure to check.
Rate of interest
In the case, you are looking to open an account through online mode, you would want to earn higher interest constituent on your savings account balance.
Note that the higher the interest rate on the account, the higher returns you would earn. So, ensure to look out for the rate of interest and shortlist the bank offering the highest rates and services.
Bank fees and charges
Financial institutions levy fees and charges on distinct services. These fees include regular service fees, ATM fees, overdraft fees, and so on.
Also, there are international transaction charges, charges on paper statements in a few banks, and excess transaction charges. Ensure to factor in such fees. Opt for the financial institution charging the lowest fees on the service you would use the most.
Minimum balance requirement
A few bank accounts might have no balance requirement while others might need you to deposit a minimum sum to keep your account active and functional. The minimum balance that you may require to keep may range anywhere between Rs 1,000 and Rs 1 lakh or even more.
In the case you fail to maintain a proper minimum balance according to the financial institution’s terms and conditions, then a penalty may be levied by the institution. So, you must select the financial institution depending on your cash inflow and your level of minimal balance that you are fine keeping with the financial institution.
Step 2. Visit the financial institution’s site or use its app
Once you have selected the banking partner, ensure to visit the site, or download the app. You will usually find the option to open an online account under the section called “products”. Navigate to this section and hit on it.
Step 3. Fill out the application form and provide the asked documents
Once you have selected the option to open a new bank account, you will get an application form online, which you must fill out. You might require inputting a few basic details like your date of birth, name, phone number, email ID, and so on.
The exact information required may differ from one financial institution to another. However, most online interfaces are self-explanatory and user-friendly. Once you have filled out the form, you must attach the asked documents and submit the application for the savings account.
Upon receiving your request to open an online savings account, the financial institution will review your application and based on the review will accept and inform you about your savings account details.
Please note that this is not a financial advice website and readers are advised to take appropriate action when investing.
