samanthayeah
New member
# Using new generation digital - zero balance bank accounts to earn some returns. This by any means not a marketing post.
I am not sure how many people here are using them new digital savings accounts that can be opened with just UIDIA Biometric author e-KYC. (Since SC kind of scrapped Aahdaar - banks are using different ways to offers these zero balance accounts).
I am using 5 such accounts and they do offer a great interest rate on the savings account. Until recently - this rate was beating FDs in all the aspects. Yes, it's a great way to earn some returns (when strictly compared with FD).
I will just present a small summary here of what I have witnessed & earned in the past couple of years.
I am talking about below accounts. All interest rates are per annum on the savings account
1) Airtel Payments bank
- Until March 2018 - they were offering 7.25 % per annum
- Internet paid monthly.
- Now they are offering 4%
- 100K is limit of max deposit
- Virtual debit card available
2) Digi Bank (My favorite in this segment)
- Initial 100K gets 6% (till last year twas 7%)
- 100K to 200K gets 7%
- 200K + earns 5%
- Physical debit card with 10 free withdrawals per month on any ATM (until Aug 18 it was unlimited withdrawal. No kidding)
- Net banking available, App banking available
- UNLIMITED FREE IMPS/NEFT/RTGS
3) Kotak 811
- Initial 100K gets 5%
- 100K + amount get 6%
- Virtual debit card available
- Net banking available, App banking available
- UNLIMITED FREE IMPS/NEFT/RTGS
- Cheque book available on request
4) Axis ASAP
- Any amount above 10K gets converted into flexible FDs on a daily basis
- FDs get 7.3 % rate. Flexible FDs are created/broken as per outgoing funds needs
- Just read their TnC to understand how the whole account works.
- Virtual debit card available
- Net banking available, App banking available
- UNLIMITED FREE IMPS/NEFT/RTGS
- Cheque book available on request
- Dedicated FD earns as high as 7.5 % ( and 8.2 % for Senior Citizen)
5) Paytm Payments bank
- Flat 4%
- 100 K deposit limit
- Just using this - as I am using paytm wallet a lot.
- Virtual debit card available
- UNLIMITED FREE IMPS
Cons-
- Everything is online
- People comfortable with regular banking may find it difficult to adopt
Final thoughts -
I think the biggest advantage is ZERO balance and Unlimited transfers.
Plus all of these apps have BHIM UPI interface built in. And UPI is free (as of now) for individuals
Since the money lies in saving mode- it can be moved around anywhere. Moving money around is very easy.
I did my detailed study before opening each of these accounts and kept them ZERO for more than a quarter straight. NO strings attached. These are really NO MIN BALANCE accounts.
Most of us work very hard for the money. FDs are safest bate one can go for in an investment. But instead of going for FD - a lot of these accounts makes sense (at least to me).
All in all - these banks can definitely be alternative your traditional bank accounts.
Just my two cents.
I am not sure how many people here are using them new digital savings accounts that can be opened with just UIDIA Biometric author e-KYC. (Since SC kind of scrapped Aahdaar - banks are using different ways to offers these zero balance accounts).
I am using 5 such accounts and they do offer a great interest rate on the savings account. Until recently - this rate was beating FDs in all the aspects. Yes, it's a great way to earn some returns (when strictly compared with FD).
I will just present a small summary here of what I have witnessed & earned in the past couple of years.
I am talking about below accounts. All interest rates are per annum on the savings account
1) Airtel Payments bank
- Until March 2018 - they were offering 7.25 % per annum
- Internet paid monthly.
- Now they are offering 4%
- 100K is limit of max deposit
- Virtual debit card available
2) Digi Bank (My favorite in this segment)
- Initial 100K gets 6% (till last year twas 7%)
- 100K to 200K gets 7%
- 200K + earns 5%
- Physical debit card with 10 free withdrawals per month on any ATM (until Aug 18 it was unlimited withdrawal. No kidding)
- Net banking available, App banking available
- UNLIMITED FREE IMPS/NEFT/RTGS
3) Kotak 811
- Initial 100K gets 5%
- 100K + amount get 6%
- Virtual debit card available
- Net banking available, App banking available
- UNLIMITED FREE IMPS/NEFT/RTGS
- Cheque book available on request
4) Axis ASAP
- Any amount above 10K gets converted into flexible FDs on a daily basis
- FDs get 7.3 % rate. Flexible FDs are created/broken as per outgoing funds needs
- Just read their TnC to understand how the whole account works.
- Virtual debit card available
- Net banking available, App banking available
- UNLIMITED FREE IMPS/NEFT/RTGS
- Cheque book available on request
- Dedicated FD earns as high as 7.5 % ( and 8.2 % for Senior Citizen)
5) Paytm Payments bank
- Flat 4%
- 100 K deposit limit
- Just using this - as I am using paytm wallet a lot.
- Virtual debit card available
- UNLIMITED FREE IMPS
Cons-
- Everything is online
- People comfortable with regular banking may find it difficult to adopt
Final thoughts -
I think the biggest advantage is ZERO balance and Unlimited transfers.
Plus all of these apps have BHIM UPI interface built in. And UPI is free (as of now) for individuals
Since the money lies in saving mode- it can be moved around anywhere. Moving money around is very easy.
I did my detailed study before opening each of these accounts and kept them ZERO for more than a quarter straight. NO strings attached. These are really NO MIN BALANCE accounts.
Most of us work very hard for the money. FDs are safest bate one can go for in an investment. But instead of going for FD - a lot of these accounts makes sense (at least to me).
All in all - these banks can definitely be alternative your traditional bank accounts.
Just my two cents.