Digital Savings Account vs Saving Account

A digital savings account is exactly how it sounds, a savings account which is entirely digitised. Gone are the days when you have to stand in a queue to get your passbook updated or to apply for a chequebook. With a digital savings account, you can handle all the activities of your savings account through your mobile phone. All you need to open a Digital Savings Account is your Aadhaar number and PAN number. 

Here are some of the benefits that a digital savings account offers, over and above your regular savings account:

  • Keeping a check on your transactions: All your transactions are visible to you on your mobile. Every bank which offers digital savings accounts has a mobile application which has everything you need to manage your account. You can check if your payments have been debited or funds credited by merely visiting the app on your mobile. A digital savings account saves you from the hassle of waiting for statements or visiting the bank to find out about your savings account transactions.
  • Easy Transfer of Funds: You can comfortably retire your chequebooks and transfer money instantly to anyone, whether it is family members, suppliers, or retailers. With the availability of IMPS, NEFT and RTGS, you can even plan and schedule your payments. There is a little-to-no cost involved in transferring funds online.
  • Paying Bills: Paying your bills have never been easier. You can schedule your bills with a host of retailers registered on the app. The bills will be automatically get deducted according to your monthly due dates. You can even choose to pay these bills manually, and even this takes significantly less time as everything can be done upon a few taps.
  • Cash Withdrawal: A digital savings account works the same as a regular savings bank account on paper. You can visit your bank’s ATM and withdraw money from your digital savings account as you would from your standard savings account.  
  • Higher interest rates: These offer considerable high-interest rates than a regular savings bank account.
  • Virtual Debit card: When you open a Digital Savings Account, you also get Virtual Debit which can be used for Online Shopping, Recharges, Scan & Pay at merchant outlets, or Paying bills.
  • Invest Easily:  Investing becomes simpler and quicker with these accounts. You can put your spare cash in a fixed deposit in a matter of seconds and ensure that you maximize your returns. You can also put your money in other avenues like mutual funds through our Digital Savings Account.

The most significant advantage of digital savings account over a traditional savings account is that you can bank on the move. Suppose you’re not comfortable with a digital version. In that case, most banks give you the option of converting it into a regular savings account by stripping off the perks of a digital account instantly.

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