How to Open a Savings Account Online

Opening a savings account is a simple process. It can be done quickly and easily, often even online. These accounts offer several benefits, such as earning interest on your deposits and providing secure storage of your funds. There are different types of accounts to suit your specific needs, such as zero-balance savings accounts, salary accounts, and senior citizen accounts.  

Most banks have streamlined their savings account opening process. This makes it simpler for customers. Whether you choose to open an account online or in-person, you will need to go through certain steps. Here's a comprehensive guide on how to open a savings account:

1. Compare Different Options

When opening a savings account, choose a bank that meets your financial needs. This decision is crucial. Consider these key factors:

• Annual Percentage Yield (APY)

The APY may differ from one bank to another. Generally, a higher interest rate means you can grow your money faster, which is especially helpful for long-term financial goals.

• Minimum Balance Requirement

Opt for accounts with zero or low minimum balance. This means no fees will be charged for maintaining a low balance. This allows you to grow your savings without penalty.

• Fees and Charges

Look for lower charges on ancillary services (SMS alerts, cheque books, etc.).

• Accessibility to ATMs

Check for convenient access to cash withdrawals.

• Branch Accessibility

Consider the availability of physical branches for in-person services.

• DICGC Insurance Cover

Ensure deposits are insured up to ₹5 Lakhs by the Deposit Insurance and Credit Guarantee Corporation (DICGC). 

2. Gather the Required Details and Documentation

When opening a savings account, you must provide basic details. These details are required by the financial institution. In addition to this, you will also be required to furnish the following documents:

• Government-issued ID proof: Aadhaar card, PAN card, voter's ID, driver's license, etc.

• Address proof: Aadhaar card, voter's ID, utility bills, etc.

• Income proof: ITR returns or Form No. 16

3. Select a Single or Joint Account

Another important factor is to decide whether you wish to open a single account or joint account. Both these accounts offer different sets of benefits. However, if you get a joint account opened, the co-signer needs to be present and provide their own details.

4. Submit Your Application

Once you have filled out your application form, agree to the bank’s terms and submit the form. The financial institution will verify your details. Then, they will approve your request to open a savings account.

• Process of online Application:

Most banks offer online savings accounts with personalised features. They also have a fast-paced opening process. Here are some common steps: 

1. Visit the bank's website

2. Fill in the online application form

3. Submit the form with required documentation

5. Make an Initial Deposit

Some savings accounts require you to transfer a minimum amount at the time of opening them. On the other hand, you can choose accounts with no minimum balance requirement.

6. Set up Online Banking

With fintech and online banking, every bank and financial institution offers digital services. Once your account is opened, you can set up online banking. This allows you to access and control your account remotely, even from home.

 

Note: The exact steps to open an online savings account may differ across banks. Check the bank’s official website for a smooth application process. 

For those who prefer in-person banking, opening a savings account at a branch is still an option. It remains a common choice. Here are some common steps that are usually followed to open an savings account offline:  

1. Visit your bank's nearest branch

2. Acquire a savings account application form from a bank representative

3. Fill in the application form with the required details

4. Submit the filled form along with the required documents

5. Wait for the bank to process your application and open your account

The eligibility criteria for a savings account are simple and easy to meet. However, they may vary slightly between banks. Here is the list of common eligibility criteria:

• Applicant must be an Indian resident

• Applicant must be over 18 years of age

 

Before opening a savings account, compare the offers presented by different banks. This could be in the form of discounts or cashbacks. Ensure that you check the features and joining/annual fee details from finalising on an option.