How safe is an online savings bank account?

How safe is an online savings bank account?

FPJ Web DeskUpdated: Thursday, February 16, 2023, 06:42 PM IST
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Online savings bank accounts have gained immense popularity in India in recent years, offering convenience, and easy access to funds. Although online savings accounts are a great option for saving money and can easily be opened, many people opt for the traditional method of opening a Savings Account at the Bank branches due to concerns about the safety of the online process. It's relatable to have concern about the security of your savings when it comes to your hard-earned money. This article should address any concerns you have about keeping your money in the bank.

While online savings accounts are generally safe and secure, you must ensure that the bank you choose to open an account with follows the necessary safety standards and protocols. The majority of banks have stringent measures to keep your funds secure.

First and foremost, it is important to note that online savings bank accounts in India are regulated by the Reserve Bank of India (RBI) and insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC). Additionally, online savings accounts are protected by various security measures such as OTP authentication by the user, and SMS alerts for transactions. However, there are circumstances beyond a bank’s control where the responsibility lies with the customers to ensure online safety. To ensure the safety of your online savings account, it is important for users to follow some standard practices. 

One of the most important things you can do is to choose a bank that is well-established and has a good reputation. Before opening an account, research the bank's security measures. It is also important to choose a strong and unique password for your account and to never share your password with anyone.

Another important step in ensuring the safety of your online savings account is to keep an eye on your account activity. Regularly checking your account balance and transactions can help you identify any suspicious activity, such as unauthorized transactions or money transfers. If you find any suspicious activity, it is important to contact your bank immediately and report the issue.  Banks such as Karnataka Bank always take strong online security measures in place to protect the financial and personal information of their customers. This includes encryption of sensitive data, multi-factor authentication, secure servers, and constant monitoring and updating of their systems to protect against potential security threats.

It is also important to be cautious when using public Wi-Fi or computers to access your online savings account. Public Wi-Fi networks are often unsecured and can be easily hacked, putting your financial information at risk. If you need to access your account from a public place, make sure to use a VPN to protect your data. Additionally, avoid logging into your account on shared computers or devices, as these may not be secure. To avoid malware and hackers, keep your operating system and anti-virus software up to date.

Conclusion

Online savings bank accounts in India are a safe and convenient way to save money, as long as you take the necessary precautions to protect your credentials. In India, the savings account interest rate usually varies between 2.50% and 7.00%*(*subject to bank’s policies) per year. So, while you consider whether you should Open Online Savings Account with a bank that ensures safety, you should also consider the interest you earn from your savings.

By choosing a well-established bank, following best practices for online security, and being cautious of phishing scams, you can ensure the safety of your online savings account. You can always entrust banks for securing your hard earned money and open a savings bank account online from the comfort of your home.

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