How Digital Savings Account differs from a Savings Account

Saving money is a vital aspect of personal finance management. A savings account is one of the most popular tools used for this purpose. However, with the increasing popularity of digital banking, a new type of savings account has emerged, known as the digital savings account. In this blog, we will explore the differences between a digital savings account and a regular savings account.

What is a Digital Savings Account?

A digital savings account is an online savings account that can be opened and managed through a bank's website or mobile app. It is a type of financial account that allows individuals to deposit their savings and earn interest on their balance without having to visit a bank branch. Digital savings accounts are becoming increasingly popular due to their convenience and flexibility, as they offer features like instant account opening, easy online transfers, and 24/7 access to account information. They also tend to have lower fees and higher interest rates compared to traditional savings accounts. Overall, digital savings accounts are a convenient and modern way to manage your saving.

Read More: - All About Digital Savings Account

What is a Regular Savings Account?

A regular savings account is a type of financial account that allows individuals to deposit their savings and earn interest on their balance. These accounts are typically offered by banks and other financial institutions and can be managed in-person or over the phone. Regular savings accounts usually have a minimum balance requirement and may charge fees if the balance falls below this amount. They often have lower interest rates compared to other types of savings accounts, but they offer the security and stability of a traditional bank account. Regular savings accounts are a great option for individuals looking to save money over a longer period of time.

Digital Savings Account vs. Savings Account:

To help you understand the differences between these two types of accounts, we have created a table highlighting the main differences:

Account Opening:

A digital savings account can be opened online within a few minutes, while a regular savings account can be opened either online or in-person at a bank branch.

Debit Card:

Digital savings accounts typically come with a virtual debit card or a physical debit card that can be used for online transactions, while regular savings accounts come with a physical debit card that can be used for both online and offline transactions.

Eligibility:

Digital savings accounts are available to anyone who meets the bank's eligibility criteria, while regular savings accounts may require a minimum balance or monthly deposit.

Prerequisite:

To open a digital savings account, you need a smartphone and internet connectivity, while a regular savings account does not require any specific prerequisite.

KYC Process:

The KYC (Know Your Customer) process for a digital savings account can be completed online using Aadhaar or other eKYC methods, while a regular savings account requires in-person verification with identity and address proof.

Account Opening Charges:

Digital savings accounts are usually free of charge, while regular savings accounts may involve account opening charges or minimum balance requirements.

Conclusion:

Digital savings accounts and regular savings accounts have some significant differences in terms of account opening, eligibility, and KYC process, debit card and account opening charges. Digital savings accounts are more convenient, accessible, and user-friendly, but they may not offer the same level of security and customer support as traditional banks. Ultimately, the choice between a digital savings account and a regular savings account depends on your personal preferences, financial goals, and lifestyle.