The Covid-19 pandemic has changed the complete situation for the Indian banking sector. At a time when the complete nation is beneath lockdown-like restrictions, sector professionals say the want and relevance of obtaining digital savings accounts have gone up exponentially.
Along with standard banks, numerous digital banking/mobile banking startups are also providing digital banking options, which are necessary in particular through this pandemic.
According to a study carried out by Niyo nationwide, amongst 8000 millennials residing in metro and non-metro cities revealed that 70 per cent of Indian millennials are now inclined towards digital banks, in particular for practical buyer help.
Experts say amid the COVID-19 pandemic, millennials have develop into more cautious with their spending. The information from Niyo also stated, 55 per cent of respondents interestingly, stated that they would switch banks for rewards and gives and 45 per cent would switch banks for far better interest prices.
Tushar Verma – Business Head, NiyoX says, “Choosing a financial institution to look after one’s money is one of the most important financial decisions one can make.” He additional adds, “Technology being the foundation for the growth of Fintech in India, it played an important role in making financial services accessible and convenient for end customers.”
Usually, most of these digital/mobile banking platforms such as Niyo, come with several account selections that provide customers access to wealth management along with a savings account. Some also provide the facility to invest in mutual funds, facility to track all one’s investments in one spot, Robo advisory and a feature that rounds up one’s expenditures and invests in one spot.
Verma says, “One should keep in mind that different banks offer different levels of service, charge different levels of fees, and pays significantly different amounts of interest on one’s money.”
Here are a couple of components to think about just before opening a digital savings account
One of the most vital components to think about in deciding upon exactly where to bank is the interest price supplied.
Verma says, “People often park some money in their savings account as it comes in handy. However, such money parked for years doesn’t grow with the growing inflation rate. Hence, it is advisable to opt for a savings account that offers interest at par/higher than India’s inflation rate.”
Most of the banks in India anticipate account holders to maintain a minimum balance in the account and anytime the criteria are not matched, banks charge a penalty.
Besides that, there are several charges that banks charge prospects for, such as Balance Maintenance charges, SMS charges, ATM card charges, Returned cheque charges, Out-of-network ATM charges, and so forth.
Verma says, “Fees are by far the largest distinguishing factor among checking accounts. All else being equal, one should choose the checking account with the lowest charges.”
Most of the digital savings accounts provide a good UI and UX encounter. Industry professionals say, an vital point to think about is further features – 24×7 buyer help, expense tracker, selection to set limits on numerous tractions – UPI, POS, Online, Lock and Unlock debit card by means of the app, and so forth.