esm7i I’ve been saving money for a long-overdue vacation abroad. For months, I planned to open a new online bank account. Work and life were always getting in the way. I was about to give up on the idea when my tech-savvy neighbor, who came home one evening for tea and chat, guided me.
You see, I was an old-fashioned kind of person. I liked doing things before the internet. My millennial neighbor showed me how to open an online bank account that day. Believe it or not, I opened my new online bank account by the end of the following day!
I was surprised to discover that online banking is as exciting as Alice falling down the rabbit hole. (See this old Lewis Carrol fan). I’m excited to tell everyone about it. This step-by-step tutorial will show you how to open an online bank account. Let’s start with the basics.
What is an Online Bank account
Online bank accounts are simply savings accounts that can be opened and managed online. We need to go back in history to understand how this works.
You may remember when you were in your 30s and 40s that you needed to visit your local bank branch to manually fill out the form to open your savings account.
Ask your parents if you are younger. You’ll hear how you needed to fill out a slip when you deposited money into your account. You’ll learn how to withdraw money from your account by filling out a withdrawal form. All this in person!
All these tedious processes are eliminated with an online bank account.
Open your account today from the comfort of your home. You can pay bills, transfer money, open an FD, invest, and even pay taxes from the comfort of your couch. There are no queues to wait in, no waiting for cash, and you don’t have to take a half-day off work (with reduced pay) to get some money.
You only need an internet connection and a smartphone. How does the online account opening process work? Let me explain.
Quick Guide for Opening a Bank Account Online
India has about 12 public banks, 20 private ones, and an expanding network of neo-banks. Naturally, the process for opening a bank account online varies from one entity or another. Here is a general guide to opening a new online bank account.
Choose Your banking partner
You can now open an online account at most Indian banks. Research your options and select a bank that you feel comfortable with. Check out these factors before you make a choice.
The Interest Rate
If you plan to open an online savings account, you should maximize the interest you earn on your account balance. The more you make, the higher your interest rate. Look at the interest rates offered by your preferred banks before you narrow down your choices.
Bank fees
The banks also charge fees for various items, such as ATM, service, and overdraft charges. Some banks charge for international transactions, excessive fees, and paper statements. Consider these fees when making your decision.
Minimum balance requirement
Some banks may require a balance of zero, while others will insist that you maintain a certain minimum amount in your account. It could be anywhere between Rs. This could range from Rs.1,000 to Rs. 1,000 to Rs.
Banks will charge you a fee if you do not maintain the minimum amount of money as stated in the terms and conditions. You can select your bank according to the balance level you can keep.
Accessibility and Support
It doesn’t matter how much you pay in interest or fees, but it will be a great partner if the bank team is available to help you out. Check out how easy it is (or not) to contact the bank’s customer service team and the quality of the support they provide before making a decision.
Step 2: Use the bank’s app or website
Visit their website (if there is one) or download their app. In the app or website, you can open a new bank account online under the “Products” section.
Click on the “Open Account” option in the section you want to visit.
Fill out the application form
You may be required to provide basic information in the application form, such as your name, birth date, email address, phone number, etc. Depending on the bank, different details may be required. Most online interfaces have a user-friendly design and are self-explanatory. This step is easy to navigate.
Submit all necessary paperwork
After completing the application form correctly, you must attach the required documents in a soft copy. The list of required documents may differ slightly between banks, but generally, the following is a guideline.
Aadhaar card
Proof of Identity (like a PAN card, a driver’s license, or a passport)
Proof of Address (like a voter ID, driver’s license, passport, etc.)
If you don’t have a PAN, Form 16 may be required.
Latest passport-size photographs
Some banks require that you self-attest documents before you submit them online. Follow the instructions for opening an online bank account.
Completing the KYC Process
KYC stands for Know Your Client. Banks must follow a KYC process before allowing you to open an account online. They need to confirm your identity to ensure you are the person you claim to be. Some banks require a video KYC as part of the account opening process.
A bank official will call you via video if your banking partner requires this. You only need to attend the video call and provide the requested details so that they can verify your identification. Do not worry too much. This is a common and safe practice.
Start banking
After you complete the KYC, you will be given the login credentials for your online account. It may take several hours or days, depending on the bank. These details can be used to log in to your online account and begin banking.
