Differences Between Regular Savings Account and Digital Savings Account

Savings accounts are an important part of any financial plan. They provide a secure way to save money and earn interest on your funds. With the advent of digital banking, there has been an emergence of digital savings accounts that offer more convenience and better rates than traditional savings accounts. In this article, we will explore the differences between regular savings accounts and digital savings accounts, including account opening, transactions, debit cards, accessibility, fees, eligibility and minimum balance requirements.

Account Opening

The process of opening a regular savings account is often time consuming as it requires physical paperwork to be completed in person at a bank branch. On the other hand, digital savings accounts can be opened online in minutes with minimal documentation required. This makes them ideal for those who don’t have the time or inclination to visit a bank branch.

Minimum Balance

Most regular saving accounts require customers to maintain a minimum balance in order for them not incur any charges. Zero balance savings account usually does not have any minimum balance requirements making them ideal for those who may not have large sums of money available.

Transactions

Regular savings accounts require you to visit a bank branch in order to make deposits or withdrawals from your account. Digital savings accounts allow you to make transactions online through their secure platforms with no need for physical visits to the bank. This makes them much more convenient for those who prefer not to leave their homes for banking purposes.

Debit Cards

Most regular savings accounts come with debit cards that allow you to access your funds at ATMs or make purchases directly from your account. Digital savings accounts also offer debit cards, but they are usually virtual cards which are linked directly to your account and can be used anywhere that accepts Visa or Mastercard payments.

Accessibility

Regular savings accounts typically require you to visit a bank branch in order to access your funds or view your statement history. Digital savings accounts offer much greater accessibility as they can be accessed 24/7 from anywhere with an internet connection via their secure online platforms or mobile apps. This makes them ideal for those who travel frequently or live far away from their local bank branch.

Fees

Regular savings accounts often come with various fees such as monthly maintenance fees and transaction fees which can add up over time and reduce the amount of interest earned on your funds. Digital savings accounts tend to have lower fees than regular ones as they don’t incur costs associated with physical branches such as rent and staffing costs which are passed onto customers in the form of higher fees.

Eligibility

 In order to open a regular saving account, you must meet certain criteria such as age limits and minimum deposit amounts which vary depending on the institution offering the account. Digital saving accounts tend to have less stringent eligibility requirements making them accessible even if you don’t meet all of these criteria.

Final Words

Digital saving accounts offer many advantages over traditional ones including faster account opening times, lower fees, greater accessibility, virtual debit cards, no minimum balance requirements and more convenient transactions. For these reasons they are becoming increasingly popular amongst those looking for an easy way to manage their finances without having to visit a bank branch. Learn more about how to open, earn interest, and manage your digital savings account better.