Opening a Savings Account simplifies banking and financial management. The account keeps your money secure and readily accessible. It also lets you make bank transfers and offline and online payments hassle-free.
When you think of a Savings Account, you might assume there is just one type. But that’s not the case. Savings Accounts are of different types. All account has the same core features. However, each account differs in eligibility, add-on features, and benefits.
The High-interest Savings Account is a type worth exploring. This blog will explain it and detail the online account opening procedure.
What is the High-interest Savings Account?
The High-interest Savings Account offers a higher interest than other accounts. Hence, opening such an account can earn you better interest.
Moreover, banks extend a higher interest rate for higher account balances. This helps you further maximise your interest earnings. For detailed information on the applicable interest rates, refer to the balance slab rates provided by the bank.
The High-interest Savings Account has the same core features as other accounts. However, there may be different minimum balance requirements and account limits. Account features and benefits vary slightly between banks. For specific information, consult the bank’s customer representative or visit its website or app.
How to Open a High-interest Savings Account?
Following is the online account opening procedure:
- Use Website/App
First things first, get online. You could open the account on the bank’s website or mobile banking app. For this, use a functional device with strong internet connectivity. This is necessary to ensure a secure and smooth online account opening procedure.
- Choose the Account
As mentioned, there are several types of Savings Accounts. All account options are on the bank’s website/app. Click on the respective account option to open it. In this case, you need to click on the High-interest Savings Account.
Note: The account name differs based on the bank you choose.
- Enter PAN and Aadhar Number
To open an online account, you need to enter your PAN and Aadhar number. This is necessary for identity verification. On doing this, you will receive an OTP on your linked mobile number. Enter the OTP in the designated box and click the ‘confirm’ button. This will kickstart the account opening process.
- Complete the Application Process
Every bank follows a specific account opening application procedure. However, it generally has two main parts: form filling and documentation.
The Savings Account opening form is basic. You need to enter your personal details. Ensure accuracy while filling out the form, as the bank relies on it for account opening.
The bank’s website or app lists all the document requirements. Gather these documents beforehand to avoid last-minute hassles. You must upload scanned copies of the documents on the website or app. Verify the documents’ accuracy and clarity before uploading them.
Upon submission of the form and document, the bank will take a reasonable time to review them. They may request additional information and documents on a case-by-case basis. Priorities meeting these requirements for a seamless account opening.
- Fulfil KYC Requirement
Fulfilling the Know Your Customer (KYC) requirement is mandatory for online account opening. You can meet the KYC requirement via video calling.
Make sure you have a working device with a stable internet connection. Allow the bank’s customer representative to access your location. Stand before a clear wall for the video call so that the customer representative can clearly see you. Present your original PAN and Aadhar Card to the representative during the call.
Once the representative verifies these documents, the procedure will be complete.
- Deposit Funds
The final step in opening a Savings Account is making an initial deposit. The initial deposit is different for each bank and account type. Find your bank’s specific initial deposit requirement, as you must pay it upfront. You can make the initial deposit via direct transfer, Debit Card, or UPI. You cannot use a Credit Card for this.
Once all formalities are successfully completed, the bank will open your account. Note that the Savings Account interest rates are subject to change. Therefore, regularly check the bank’s website/app to stay updated on their latest interest rate.
Summing It Up
A Savings Account is a default type of Bank Account most people open. It allows you to do it all: save, earn interest, and bank. There are diverse types of Savings Accounts. The High-interest Savings Account is a popular type of account. As the name implies, the account offers higher Savings Account interest rates. This maximises your interest earnings.
You can open the account via the Internet and mobile banking. The process is simple and will take a maximum of an hour. If the process is successful, the bank will open the account on the same day.
