In India, we have many options to open a bank account for savings for many purposes such as for children’s education, marriages, building own houses, cars, and many more. So, we need to be aware of the bank details in which we open a bank savings account to get maximum profit. Hence, we must consider so aspects in our selection of bank. Today, we are here to help you in this process to select the best bank for your future savings to lead a happy life.
Why do we need a savings bank account?
To keep your money safe and able to use it regularly, the best option for us is to consist of a savings bank account. Also, nowadays people are very interested in making their investment portfolios by considering the use of savings bank accounts to be well-founded and well-grounded. However, the main question that arises here is which bank is better for savings accounts in India.
In India, the chance to open savings accounts to customers has been offered by both public and private sector banks. The fluctuating rate of different bank interests varies from 2.50% to 7.00% per year.
We need to consider different features and aspects that different banks offer before we open a bank account in it. To know more about those features, go on and keep reading our money babai article. This would help you to gain knowledge about this.
Factors To Consider Before Opening An Online Savings Account :
1. Interest rates:
Different banks offer different interest rates on your savings account and this may vary from 4.00% to 6.25% annually, subject to conditions. Even if the interest rates seem to be inveigled and attractive, do not rush in with that bank because we need to be aware of some other features too such as minimum bank balance and other terms and conditions. We need to keep accessibility in the count too because banks that offer high-interest rates may provide you with less accessibility. So, we need to be aware of this too.
2. Minimum Balance Criteria:
If you don’t have a stable source of income, please prefer the bank that offers zero minimum balance because most banks have restrained you to maintain some minimum balance in your account. This restricts you to take the total amount in the account if required in some situations. Also, banks charge a fee, if you don’t maintain the minimum balance. And the fee will be deducted when you credit it again to your account.
3. Ease of Online Access:
Before you take up a bank, verify its particular digital banking services. Because you need to be able to perform some simple tasks through online modes such as viewing your account balance, opening accounts like FD or Public Provident Fund (PPF), etc.
4. Debit Card offers:
You must be able to get a free chequebook, extra cards, and discounts on some goods when you create a savings account with a bank. You must guarantee yourself that by selecting a particular bank you will be provided with these basic facilities by your bank.
5. Transactions and Service Charges:
Carefully review the terms and conditions to check if any fees or charges are associated, before you open the account. For the features that you don’t use you always have the option to deny them and not pay for those features.
6. ATM and branch density:
We are aware that cash withdrawal is not an emergency at frequent times. But we must be available with sufficient ATMs. So wisely choose a bank that provides you with many ATMs around your locality. Also, choose a bank that has branches scattered across the city for flexibility and benefits.
Ultimately, the best bank for you will depend on your specific needs and preferences. It is advisable to compare the different options available and choose a bank that offers the features and benefits that are most important to you.
Now, let’s go through the Top 10 banks that provide online savings accounts in India.
1. RBL Bank Savings Account :
RBL bank provides some of the highest interest rates among all banks up to 6.75% on savings accounts. Even SBI, HDFC, and ICICI banks too provide interest rates varying from 5 to 6% but on fixed deposits. So, we can get the same rates for savings to account in RBL bank with locking your money for years. You have the facility to open a digital savings account also with RBL online without visiting a bank location if you are having some online process experience.
The monthly average balance is the minimum amount of money that the account holder has to maintain in their current account or savings account. This is the least bank balance that you, as an account holder, need to have in your account each month to avoid being penalized by the bank. And the monthly average balance for RBL bank is INR 500 for rural and INR 1,000 for semi-urban and INR 2,500 for urban areas.
The interest rates on principal amounts vary in the range of 4.25% p.a. to 6.75% p.a. We can get high rates of interest in this bank ad also a quick and online account opening process. We can also get a quick bill payment facility along with virtual debit card facilities in RBL bank. The only disadvantage here is we need to maintain around INR 1 lakh average monthly balance to get higher interest rates. Else we do not get those high rates.
2. State Bank of India :
We can observe on our roads that SBI maintains several ATM centers in any location in our nation. SBI also maintains several branches and extension counters for students at various schools, colleges, and universities. Exam fees and regular expenses can be paid by the students easily through SBI banking. Also, banking services can be accessed by students with more affordable fees.
SBI also provides the facility of zero monthly average balance. Also, accounts can be accessed through both online and offline modes. The rate of interest is not quite high but considering the other factors, it provides considerably high rates up to 2.7% p.a. SBI can be considered your choice because of its widespread reach and services across India and also of the facility of zero minimum balance. But it doesn’t provide additional savings or offerings to loyal customers or premium accounts.
3. HDFC Bank :
With HDFC, you get access to the best products on the market, including the HDFC Diners Club Black Credit Card, HDFC Smart Buy, HDFC on Chat, HDFC Personal Loans on ATMs, etc. HDFC Bank offers another range of premium banking products and services with unique pricing, phone banking capabilities, and lifestyle benefits. Portfolio management, tax payments, insurance, and investment management are all handled by premium banking.
The monthly average balance in HDFC bank is around INR 5,000 for kids’ advantage to INR 25,000 for savings accounts which is the maximum. Both online and offline channels of access are available for HDFC.
The rate of interest varies from 3.0% p.a. to 3.5% p.a. The main advantages of HDFC are there are good products and premium accounts available and it also, provides great benefits through partnerships with multiple outlets and vendors. But the offline service is average and the technology needs improvements better.
4. Kotak 811 Savings Bank :
The Kotak 811 Digital Bank is one of the best savings accounts offered by Kotak Bank. A laptop or a mobile device can be used to open an 811 account, which has no balance.
A few easy steps lead to creating an account since everything is digitized. Kotak bank offers zero-balance accounts and zero monthly average balances. The channel of access can be made both online and offline. The rate of interest is 3.5% p.a. up to INR 1 lakh balance and 4% p.a. above INR I lakh balance in your bank account.
The best part of Kotak 811 is they have a high rate of interest, an online and easy account opening process, and also provides a virtual debit card. But the only concern is that the online application of this bank is not so good and should be improved in the future.
5. ICICI Bank :
It’s incredibly easy to open a savings account with ICICI Bank. More than 200 financial services are available online. You may open MF, FD, RD, PPF, and NPS accounts, monitor transactions and balances, transfer money, manage your Demat account portfolio, pay bills and insurance premiums, book tickets, and open new accounts using your mobile device. All service requests may be accessed from one location, saving time and providing a hassle-free customer experience.
The monthly average balance is Rs.10,000 to Rs.1,25,000. The mode of access is both offline and online. The rate of interest is up to 3.0% p.a. for the balance of INR 50 lakhs and above INR 50 lakhs it is 3.5% p.a.
The best part of ICICI’s bank savings account is the mobile application it provides to its customers, which is very simple and easy to use. Also, the online experience is smooth and hassle-free. But apart from its benefits, it has no extra benefits to loyal customers and the average-quality banking product.
6. Axis Bank :
The only bank that offers points for transactions involving accounts is Axis Bank. You can gain reward points, for instance, for creating an RD, or a Demat account, or by submitting standing orders. You can get extra benefits when you open a savings account, including a free Times Prime membership, savings, and rewards on Zee5, Amazon, Ganna, and Uber.
The monthly average balance is from INR 2,500 to INR 2,50,000. It can be accessed through both online and offline modes. The rate of interest varies from 3.0% p.a. to 3.7% p.a. The advantage we get through this bank is its premium-quality services. The services it provides are very good and the customer care is also satisfiable. We can also gain reward points for normal banking transactions and can gain money on luck.
The default is that the benefits are mostly provided at a higher relationship value. They are not available for lower relationships. The customer support is average but good as compared to other banks’ customer care.
7. AU Small Finance Bank :
With the help of video banking, digital savings account from AU Bank may be rapidly opened online. All you need are your PAN and Aadhaar cards, as well as an active internet connection. For savings accounts, AU Bank offers one of the highest interest rates, up to 7%. Your bank, unlike other banks, pays interest each month. For individuals whose monthly income from interest on savings depends on it, this is great. The digital savings account has no balance, so you don’t need to worry about maintaining the monthly balance.
The Average monthly balance ranges from 0 to 5000 INR. The Access Methods are both Online and Offline. Interest rates (p.a.) range from 4.0% to 7.0% p.a. The main advantages are access banking, simple to use and carry out and debit cards present amazing savings. But the disadvantages are typical customer service and presence are quite restricted in India.
8.IndusInd Bank :
A 3-in-1 zero balance service is offered by IndusInd Bank in collaboration with Upstox (savings, trading, and Demat account). You can trade stocks with IndusStox’s Smart Transfer option without transferring money from your savings account to your trading account. You’ll become interested in the money because it will remain in your savings account. You can earn up to 6% interest on your money. Savings account interest rates are greater than fixed deposit interest rates offered by institutions like SBI.
The monthly average balance should be INR 1,500 to INR 10,000. The access modes are both offline and online. The rates of interest are 4.0% p.a. to 6.0% p.a. The fascinating thing about IndusInd bank is its access to online banking, mobile banking, IVR help, and more facilities than other banks. NRIs staying in India for 180+ days can also open an IndusInd saving account. The disadvantage of IndusInd bank is it doesn’t provide extra benefits to its loyal customers. Also, its average banking product is another disadvantage.
9. Citibank :
Your family and close friends’ international banking demands can be satisfied by Citibank. In 42 countries, 4000 Citibank locations are available to assist you with your financial needs. Strong fund solutions are available from Citibank, including wire transfers, automated clearing houses, foreign currency draughts, and Citi Global Transfers. Where you can receive up to Rs. 30 Lakhs per day from your Citibank account to the Citibank account of a relative who lives overseas or send up to Rs. 3 Lakhs per day.
There is no particular monthly average balance for Citibank. Both offline and online access methods are available in Citibank. The rate of interest varies from 2.5% p.a. to 4.0% p.a. The best part of Citibank is its complimentary reward points, debit cards, and other premium privileges.
There are no extra banking or interest service charges. A diversified clientele facility is also available for Citibank. But the services of Citibank are only available in 23 cities in India. This is a great fault because of less availability.
10. PayTM Payments Bank :
The Paytm Payments Bank provides essential banking requirements and cashless payment transactions for the unbanked segments of society. To create an account here, there are no forms to fill out. Making an account with the Paytm app is simple and fully digital.
To complete your KYC at the closest location, you must, however, produce the required documentation. You are only able to hold a combined total of Rs. 1 Lac in your wallet and savings account with a Paytm Savings Account.
Here, there is no monthly average balance in the Paytm payments bank savings account. The bank is available in only online mode. There are no offline services available here.
The rate of interest is 2.75% p.a. The benefits of Paytm payments are digital account opening, zero monthly balance, and real-time passbook updates. The cons of this bank are it rarely we have an offline branch for this. Also, the account balance is restricted to only INR 1 lakh.
How Do I Open an Online Savings Account ?
Step 1: Comparing interest rates offered by several banks is the first step. Choose the bank that best fits your needs. Select the savings account that you want to start.
Step 2: Fill out the necessary forms on the bank’s website to open an account.
Step 3: Fill out the application completely and send it in along with a digital copy of each of the necessary papers, such as proof of address, identification, age, and work or income.
Step 4: Use your savings account following approval from the bank’s back-office workers.
Benefits Of Opening A Savings Account Online
1. A secure location to deposit money:
A savings account is a secure place to save your money. You won’t need to always carry cash around with you because it can be easily withdrawn. You won’t have to worry about cash theft thanks to this. You get a great deal of security and freedom.
2. Online banking:
Due to digital payments, the appeal of a savings account has substantially increased. You can use Internet banking, NEFT, RTGS, IMPS, UPI, and other digital banking services with a savings account.
3. Government initiatives:
People are now using savings accounts more regularly because they may take advantage of government preprogrammed subsidies. To cut out the middlemen, you can only receive your benefits through direct benefit transfer programs.
4. Transactions without money:
You can receive or send money electronically using a savings account. The payment can be sent directly to the beneficiary’s bank account or received in your account.
5. The interest earned:
Only if it merely lies at your house will you make money. If you put this money in a savings account, it will be secure and bring in higher interest for you. Interest rates range from 4% to 6%.
6. Proper expenditure accounting:
It requires time and effort to keep track of money. In contrast, your savings account keeps track of all of your receipts and payments. You can control and comprehend your finances more effectively.
7. Benefits of online purchasing:
It would be excellent if you were persuaded to shop online given its growing popularity. If you use your debit card or internet banking, you can take advantage of discounts, rebates, and offers.
8. Independent of Debt:
Savings accounts to aid in debt avoidance. You are not offered a false sense of security regarding your money, unlike with credit cards and other short-term borrowing options. Instead, you live within your means and practice frugal spending while using your savings account.
Frequently Asked Questions :
1. Is it a smart idea to open an online savings account?
Online financial transactions are reliable and safe. Customer data must be encrypted and transmitted through multiple security layers. An online savings account is difficult to hack into. Every transaction is secure and under control.
2. What is the most secure online bank?
RBL bank is the most secure online bank since all of your transactions occur via a secure, encrypted channel using cutting-edge digital technology.
3. Which online savings account offers the best returns?
The banks with savings accounts that pay the highest rates include RBL bank and AU Small Finance Bank. The interest rate increases to 7% p.a.
We recommend choosing the best bank account based on the interest rate and other features as a conclusion to our blog post on the top online savings bank accounts in India. Weigh the advantages and disadvantages of the various options before choosing. These are the best savings accounts in India, although not everyone chooses to create a savings account with a certain bank. Decide and invest carefully, then!
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