DIFFERENCE BETWEEN SAVINGS ACCOUNTS AND INSTANT SAVINGS BANK ACCOUNTS

There are numerous ways to open a bank account today. You do not need to visit the bank in-person  to open a savings account; you can apply for a bank account online and open an instant savings account.

This image is subject to © copyright to their respective owners. 

However, while a savings account and an instant savings bank account are the same, differences exist between the process for opening accounts. This article offers insight into how savings accounts and instant savings bank accounts differ from each other.

1. The process of opening an account

The process of opening a savings account and an instant bank account is different. To open a bank account through the regular banking mode, you must visit the bank physically and meet with the bank official to open a savings account. Thus, it takes a longer time to open a bank account offline.

The online mode of opening savings accounts is more convenient. You do not need to visit a bank to open an account online. Furthermore, you can finish the account opening process in a few minutes.

2. The process of submitting official documents

While opening savings accounts, one of the deciding factors of either accepting or rejecting your account opening application is the official documents you submit. When signing up for an instant bank account through offline mode, it is vital to keep physical copies of all the documents. But keeping physical documents is a painful task.

The online mode to open an instant account is convenient as you do not need physical copies of your documents. You can submit soft copies of your documents. Moreover, even the KYC process is simpler in the online mode. For instance, IDFC FIRST Bank offers  an easy video KYC feature. With video KYC, you can verify your identity and documents and quickly move on to the next step of your account opening process.

3. Checking your savings account balance

Before signing up for savings accounts, it is also vital to look up the steps involved in checking the balance left in your account. The most common way to check the savings account balance offline is by updating the passbook. If you haven’t updated your passbook in a while, you must patiently wait until every transaction is recorded.

Meanwhile, accessing the account statement is easy through online mode. It is also important to note that you can modify the date range of transactions in the online mode. This feature is helpful during the loan application process.

4. Accessibility of your savings account

If you want to open savings accounts through regular banking or even carry out a transaction, you must consider the bank’s operating hours. You must plan out the entire day based on the bank's availability. Contrarily, if you have signed up for an instant online bank account, you can transact whenever you want to. You can access all banking services in the middle of the day or night.

Online savings accounts are more convenient than regular savings accounts. They offer more freedom and allow you to transact and access banking services whenever you want.