Banks are now allowing customers to open savings accounts through their apps
Opening a bank account has never been so easy. Now customers can open ‘instant accounts’ within few minutes from their smartphones. The idea behind launching such accounts is to tap the digital-savvy younger generation and provide them with the banking service they need on the go.
Open an account instantly
These accounts can be opened instantly online. “It is a completely digital and paperless account opening experience, and can be opened within five minutes, using Kotak’s mobile banking app,” says Virat Diwanji, President—branch banking and customer acquisition, Kotak Mahindra Bank.
However, since digitally opened accounts have certain limitations, a full KYC needs to be done later.
Axis ASAP account can be opened anytime and anywhere by simply using Aadhaar and PAN Card details. “With just three quick steps, it is a fast way to open a savings bank account. You don’t need to furnish any physical documents,” says Praveen Bhatt, Head—digital banking and customer experience, Axis Bank. With regards to KYC, the account holder needs to visit any Axis Bank branch for e-KYC verification (biometric authentication and signature update) after which the Axis ASAP Account will be converted into a full KYC one like any other bank account.
Yes Bank Branch banking teams are equipped with online application on their mobiles to open savings accounts instantly. “Our experience has been that customers are more likely to open as well as operate accounts which are fully KYC compliant and therefore without any limit restrictions (as faced in digital KYC accounts)” says Dhavan Shah, senior president and chief product officer (liabilities), Yes Bank.
Zero minimum balance requirements
Some of these accounts come with zero minimum balance requirements. “811 is a zero balance account where customers can earn up to six per cent interest per annum” says Diwanji. Similarly, the Axis ASAP and the SBI Insta savings account do not require you to maintain a minimum balance; hence there are no minimum balance charges either.
Higher interest rates
Kotak Mahindra Bank, for example offers a six per cent interest on its savings bank account balances. Axis Bank ASAP offers 7.1 per cent (fixed deposit rates) for account balances that exceed Rs 10,000. “Yes Bank offers interest rates of 6 per cent p.a. on balances from Rs 1 Lakh up to Rs 1 Cr and 6.25 per cent p.a. on balances of Rs 1 crore and above with a minimum balance requirement of Rs 10,000,” says Shah.
Debit cards
Some accounts like Kotak 811 come with a virtual debit card feature. “A virtual debit card is a digital payments gadget that functions like a regular debit card and is a safe and smart way to shop online, pay bills, etc,” says Diwanji.
Shop and save
“The Axis Bank ASAP account comes loaded with a lot of offers from our associated partners including Cleartrip, Bigbasket, Pepperfry, Book My Show and Myntra,” says Bhatt. While using the account, you can get a discount of up to Rs 1,000 on bookings at any of the above sites.
However, remember that these accounts come with certain limitations and are fully active only when the biometric is done. According to RBI guidelines, if full KYC is not done within 12 months from the date of account opening, the account will be automatically closed. So remember to convert such accounts into a full KYC account at the earliest to continue enjoying the benefits.
anaghpal@outlookindia.com