Top Advantages of Online Savings Account That You Must Know

Technological advancements across sectors have amped up the efficiency quotient of the products/services provided to end-users. Like other sectors, the banking and financial sector has also evolved with the changing technology. With digitization being the current norm, one can now easily do various activities online with just a click of a button. For instance, a savings account is one of the popular banking products among its customers. Now, traditional lending platforms like banks have launched their online services, mainly to attract their digitally savvy customers and edge competition. These online services offer the customers’ ease of convenience, versatility, and efficiency in operations, enriching the whole customer experience.

One can now easily open an online savings account in a hassle-free manner, which can be equally managed with ease. This helps one avoid visiting a bank branch for every transaction, thus saving their valuable time and cost. You can now utilize such time more constructively in doing things and activities that matter. Like, you can keep a tab on your online savings accounts while commuting to work without facing any issue.

Top Advantages of Online Savings Account That You Must Know

One can access their online savings account from the comfort of their home or office. Let us understand the key advantages of opening an online savings account.

  • Convenience in accessing account

You can access your online savings account anytime, anywhere, and get easy access to your money. You can even access it from your mobile. Therefore, now you can check your savings account balance or transfer money to yourself or someone just by clicking the requisite tabs. The various online transactions through your online savings account happen in a matter of minutes. An online savings account is of great help even in emergencies, like urgent medical expenses. For example, you may not have adequate cash to meet urgent needs but can withdraw/transfer cash immediately from your online savings account without any hassle and charges. Online savings accounts are thus more convenient and efficient.

  • Competitive interest rates

There is growing competition among banks to provide their customers with the best interest rates for online savings accounts. This benefits the customer in the form of better interest rates.

  • Banks provide free service benefits

Many bank services are free of charge when conducted online. For instance, banks in India now provide free NEFT/RTGS/IMPS services. Many banks even have zero balance online savings accounts with the waiver of non-maintenance charges. This enables the customer to carry out their online banking transactions in a very hassle-free manner and save on bank charges.

  • Customize your online transactions

One can allocate their money in their online savings account for their investment purpose. For instance, they can open a SIP account with a mutual fund and automate certain savings every month towards this SIP. One can also link their online savings account for paying off their monthly utility bills or other payments like an insurance premium. One needs to set the auto pay option available in their online savings account to make these payments on time. This saves the customer the hassle of remembering every bill payment monthly, thus helping them save time and penal charges on their bills.


The benefits provided through online savings accounts differ from bank to bank. Before opening an online savings account, compare the benefits offered by the bank like interest rates, free services, and so on. You can explore various types of savings accounts on Kotak Mahindra Bank website.

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