Key benefits of opening an online savings account.

Key benefits of opening an online savings account.

Time is as important as money in this dynamic world and instant services are the motto of the era. Amidst all this technological advancement and time dependency, it's much easier to switch your financial decisions to the online mode and save time. One such wise decision would be to open savings account online. A savings account is an interest-bearing deposit account to store cash for short-term purposes and these funds can be easily utilized.

Before we dive into why we need an online savings account, let's just bust some myths about it:

Myth 1: Money in an online account doesn't guarantee safety, like in a traditional one.

Fact: No! Safety of money doesn't mean physical lockers and branch with a high- security system. All the banks use anti-virus protection in bank systems, firewalls, fraud monitoring and data security measures. So your savings are safe even in an online savings account. Only account opening process is online, one can still avail other banking services from the branch in addition to the digital delivery channels.

Myth 2: Online banking is only meant for the Tech-Savvy.

Fact: Not at all! For many banks, such as Karnataka bank, it has been recorded that over 93% of customer transactions are through Digital means owing to its user-friendly online banking portals. Banks employ a team of experts dedicated to monitoring and assisting you with online banking with zero confusion. You can reach them online or via phone with any queries regarding Online Savings Account.

Why do you need to open an Online Savings Account?

The flexibility of having a savings bank account is, it helps you to save money and use it for financial transactions, build an emergency fund, save for a short-term goal like buying a vehicle or going on a vacation or simply park your cash into your account to earn interest. According to a Global survey conducted online, 26% of respondents in India claim to have a digital bank account, and another 12% indicate they intend to open one within the next year, bringing the country's overall number of individuals with such accounts to 38%. By the end of 2027, these statistics are projected to rise even further to 46%. Here are some reasons why opening an online savings account is appealing to all:

1. Safety of funds

Your money in savings account is completely safe with the bank, just like opening/maintaining a savings account in a traditional way. The Reserve Bank of India has laid down strict regulations for banks/financial institutions. In addition to the physical security measures by the bank, there are several digital protocols and online security measures that are implemented to ensure that your money is completely safe.

2. Slow yet steady income generation through interest

The money in your savings bank account earns interest basis the balance maintained in the account on daily/quarterly basis, depending on the bank. Interest is calculated for the balance maintained in the account, irrespective of the transactions carried out. This is beneficial for salaried employees, senior citizens or any individual who can carry out their day to day financial transactions and also earn interest on the balance maintained.

3. Financial Discipline

Normal tendency of a human is to spend more when cash is carried with them. The expenditures go unnoticed and without proper tracking it usually affects the savings. With a savings account, even though the money is available to spend, it makes one access his account for any spend. A customer is notified with an SMS/Email alert whenever any transaction is carried out in the savings account.

4. Online transaction facility

Banks provide mobile banking/internet banking facility to carry out financial transaction at the ease of his/her convenience. An individual can transfer funds, pay bills, request for a cheque book and much more through digital banking. Nowadays, banks enable you to carry out financial transactions conveniently without visiting the bank branch.

5. Instant Payments through debit card facility

Another benefit of maintaining a Savings Bank account is the debit card feature. The debit card is issued once the account is opened that can be used to withdraw cash, make instant payments on the POS machines, online payments/purchases thereby avoiding the need to carry cash.

6. Auto Pay settings facility for bill payments

Timely Bill payments can be carried out with the auto debit feature or standing instruction set to the savings bank account. From monthly bill payments to Mutual fund (SIP) or any recurring payments, one can set auto-pay for the required amount and defined time period. This feature reduces the possibility of missing any payment.

7. Online video KYC process

Visiting a branch physically costs an individual time, traveling costs, carrying photo copies of documents for KYC etc. These costs are saved by opening a savings bank account online through video KYC verification process. Karnataka Bank is one such bank offering a savings bank account that can be opened digitally through video verification of KYC. You can choose the type of account depending on your requirement and enjoy additional benefits and privileges. Through this process, an individual can open a savings bank account without visiting branch.


Online savings account opening has many perks. It not only promotes financial discipline but also facilitates day-to-day transactions and you can use it for online shopping and other bill payments. With the advent of new-age technology in the banking industry, opening an online savings account is one of the most desired option people were waiting for. Open online savings account to ease your day-to-day financial transactions and enhance your banking experience.