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In the digital age, the popularity of online banking remains unparalleled. It offers convenience,
accessibility, and access to a wide range of financial services at your fingertips. Opening an
online bank account has become very easy in India, with most major banks now offering to open
accounts digitally. Opening a bank account online also saves you trips to the branch. Despite
everything, you still need to research and find the most suitable bank which will help you open
the best online bank account in India to suit your needs. This comprehensive guide covers
everything you should know about how to open a bank account online.
Choose a Bank Offering Robust Digital Security
One of the most important factors for digital banking in India is robust security. Only open an
account with a reputable bank that uses encryption and other measures to protect your
information and money. Look for banks offering two-factor or multi-factor authentication that
requires an OTP code sent to your phone when you log in. Review the bank’s overall security
features before applying for an account.
Compare Interest Rates on Savings Accounts
While Savings Accounts interest rates have dropped over the past year, online banks in India still offer higher
interest rates on savings accounts. Compare rates across top private and public sector banks
when searching for the highest yields. Banks like SBI, ICICI, and HDFC show rates
transparently on their websites. The RBI mandates that banks cannot offer savings account
interest below 3.5%, so review any minimum balance requirements to earn the entire interest.
Watch Out for Hidden Fees
One advantage of online banking is lower fees, but watch out for hidden charges. Beyond the
minimum balance requirement, make sure you understand fees for services like:
● ATM withdrawals, especially at other bank ATMs
● Money transfers through NEFT/RTGS, IMPS, or UPI
● Debit card issuance and renewal
● Account statements
● Cash deposits and withdrawals over the branch counter
Read all fee disclosures carefully before opening an online account, so you know the potential
costs. Some banks may waive fees based on average balances.
Evaluate Digital Convenience
A key benefit of banking online is digital convenience through mobile and internet banking.
When comparing banks, download their mobile apps and explore their features. Look for apps
that allow easy money transfers, bill payments, mobile check deposits, locating ATMs/branches,
and more. The app should provide notifications for transactions and have strong app store
ratings. Also, review the desktop Internet banking system. Assess user-friendliness for
monitoring transactions, downloading statements, managing Fixed Deposits (FDs) and more.
Set Up Direct Benefits Transfers
Linking your government benefits and subsidies directly to your bank account simplifies access
to your savings money. Direct Benefit Transfer (DBT) schemes allow the transfer of LPG
subsidy, MGNREGA payments, pension funds and more straight to your bank account. When
opening an online account, provide details necessary to link Aadhaar and set up DBTs. This
prevents delays in receiving your benefits.
Understand Video KYC Requirements
Most major banks now allow video KYC for opening accounts online. This means uploading
your PAN and Aadhaar cards electronically and then doing a live video call with a bank agent to
verify your identity by your documents to open an account. Banks may require you to provide
your original documents at a branch within a certain period after account opening. Have your
Aadhaar and PAN cards ready before starting the video KYC process.
Pay Attention to Demat Account Options
If you want to invest in stocks or Mutual Funds (MFs), look for banks that allow opening linked
demat accounts online. A demat account holds your investments electronically instead of
physical share certificates. Review the charges, online statements, other features, and
seamless linking to your savings/current account when evaluating banks for your demat account
needs.
Compare Home and Personal Loan Interest Rates Offeredby the Bank
You might feel the need to avail of a loan from the bank in which you open an account
somewhere down the line. Before opening the account, consider the rates charged by the bank
and its eligibility criteria. Most major banks allow applying for retail lending products online by
providing income statements, employment details, and documents digitally. Check with the bank
whether you pre-qualify for a loan. Compare offers made by other banks. You will have a clearer
picture that way.
Analyse Accounts for Business Needs
If opening a business account, ensure the bank has convenient online features for managing
bookkeeping, payments, payroll, invoicing, filing GST returns, etc. Compare the costs of
business accounts, minimum balance requirements, transaction limits, and overdraft facilities.
Check for any unique benefits for merchants or startups.
Think About Accessibility Near You
While banking digitally is convenient, you still need access to physical branches or ATMs
occasionally. Before opening an account, use bank branch locators to view bank location
presence in your city. Easy access to a branch helps with needs like submitting original
documents, addressing issues, or in-person verification. Ensure the bank’s ATM network is
robust and has ATMs near you.
Read Customer Reviews and Feedback
One of the best ways to evaluate a bank is by reading customer reviews on trusted sites. Check
for feedback on the account opening process, interest rates, digital features, customer service
and overall banking experience. You can find detailed reviews of most large Indian banks and
on sites. Also, read recent Google and app store reviews to gauge customer satisfaction.
Think About Your Personal Banking Preferences
Finally, consider your unique banking needs and financial goals before finalising an online bank.
Important considerations can include:
● Need for loans or investment accounts now or in future
● Frequent domestic or international money transfers
● Paying utilities, loans, and other bills online
● Ease of monitoring finances and bookkeeping
● Interest rates on savings and fixed deposits
● Quality and accessibility of customer service
Evaluating these personal factors will help you identify the best online bank account in India for
your specific circumstances.
Take a Methodical Approach to the Right Fit
While opening a bank account online in India takes just minutes, do not rush into the decision.
Carefully compare interest rates, fees, digital features, customer service, and other factors
across leading banks.
Thinking through your individual needs and preferences allows you to make the optimal choice.
Follow this guide on how to open a bank account online from the easily at your home!