MUMBAI: Having separate bank accounts for different purposes is one of the fundamentals of personal finance. However, today’s fast-paced urban life makes it difficult to queue up at the bank and open a new bank account. With the help of digital banking, this is no longer a problem. You can now open a bank account online easily without ever having to visit the bank in person. Such bank accounts are both safe and easily accessible. Besides these, there are a plethora of other reasons why you should have an online bank account.
Why Open Bank Account Online?
Opening a bank account online has benefits. It can help you avoid standing in long queues at the bank or dealing with a large amount of paperwork. An online bank account is also more convenient because you do not need to wait for office hours to access this account.
Moreover, you can easily access this bank account digitally through a computer or smartphone. This puts banking at the customer’s fingertips and has greatly streamlined the entire banking process.
When you choose to open a bank account online, you can take advantage of additional features like 24/7 access to your bank account and real-time alerts. This means you can even send or receive funds at any time of the day.
Step-by-Step Process to Open Bank Account Online
Given the many benefits of an online bank account, here is a simple 7-step process to open one.
1. Research and Compare Banks
The first step is to start researching the offerings of different banks (whether nationalised or privatised). Compare and contrast the interest rates on savings accounts, minimum balance requirements, and any promotional offers. You should also check if these banks offer the facility to open online accounts.
2. Choose the Appropriate Account Type
Once you have decided on a bank, the next step is to choose a type of account. You can choose either a savings account or a current account, whichever suits your needs best. If you are a business owner, a current account is the best option. However, if you are more interested in building wealth, a savings account is the way to go.
3. Gather Required Documents
To open bank account online, you still need to submit some key documentation digitally. The bank uses this information to run background checks on you. These documents can include:
● Proof of identity (e.g., passport, national ID, or driver's license)
● Proof of address (e.g., utility bill or rental agreement)
● A recent passport-sized photograph
● Permanent Account Number (PAN) or equivalent (if applicable)
4. Fill Out the Online Application Form
Once you have gathered all the above-mentioned documents, it is time to fill out the online application form for account opening. To successfully open bank account online, you will need to fill in key details like your full name, date of birth, employment details, and contact information.
5. Upload Documents and Complete KYC Verification
When opening an online bank account, you must complete a Know Your Customer (KYC) verification process. This can start with a One-Time Password (OTP) sent to your Aadhaar-registered mobile number. Once this is confirmed, you may be asked to participate in a KYC video confirmation.
6. Review and Submit the Application
The final step is to review your application. Once it is submitted, you will not be able to rectify any errors. So, it is advisable to always review your application to see whether you have filled in the right contact information and personal details.
7. Receive Account Details and Begin Banking
If the bank reviews and approves your application, you will receive your bank account details, physical passbook, and chequebook at your doorstep. Once you activate your account, you can now begin banking online seamlessly.
Security Tips to Open Bank Account Online
Although opening an online account seems simple, there are a few things you must be mindful of. Entering your personal information online may be risky to some extent. So, remember to:
● Use only official websites and apps of reputed banks.
● Avoid using public Wi-Fi while submitting sensitive documents or information.
● Enable two-factor authentication (2FA) for account access.
● Regularly update passwords and monitor account activity.
The Takeaway
To sum it up, an online bank account can grant you several unique perks. By choosing to open bank account online, you can not only take advantage of these benefits, but also move closer towards good financial discipline. With banking at your fingertips, you can budget better and, as a result, spend more wisely.
