A Quick Guide to Opening a New Bank Account Online

Opening a Bank Account has been associated with a lot of effort and documentation. Kotak Bank brings an advanced and effortless way of Banking. Kotak811, a digital zero-balance savings account comes with multiple benefits, including the ability to secure a credit card against your FD. Here’s why you should consider this option and how to get started.

Benefits of Opening a Digital Savings Account

1. Instant Account Opening:
   • You can instantly open a new bank account online by simply filling out an online form on your preferred bank’s website or through their mobile banking application.
   • The process is quick and paperless, requiring only your Aadhaar number, PAN, and a few other details.
2. Convenient and Paperless:
   • This process of opening a new bank account online is digital, meaning you don’t need to visit a bank branch or submit physical forms.
   • It is highly convenient, especially in today’s fast-paced world.
3. No Minimum Balance Requirement:
   • A zero-balance account, meaning there is no requirement to maintain a minimum balance.
   • This feature is particularly beneficial for those who prefer not to worry about maintaining a certain balance in their account.
4. Virtual and Physical Debit Cards:
   • Upon opening your account, you may receive a free virtual debit card instantly, as per the bank offerings.
   • You can also request a physical debit card through the mobile banking app.
5. Extensive Online Transactions:
   • Banks support multiple ways to transfer money online, including UPI, mobile banking, net banking, and WhatsApp banking.
   • It makes managing your finances simple and helps in promoting a cashless lifestyle.

How to Open a Digital Bank Account?

1. Eligibility:
   • You must be above 18 years of age and a resident Indian citizen to open an account.
2. Documents Required:
   • You need your PAN card and Aadhaar number to complete the e-KYC process.
3. Application Process:
   • Visit the bank website or download their mobile app.
   • Fill in the online form with your details.
   • Complete the Aadhaar-based OTP verification to open a new bank account online instantly.
4. Video KYC:
   • Get higher transaction limits and more features by completing the video KYC process.
5. Using Your Account:
   • Once your account is open, you can use it immediately for online transactions, savings, and investments.

Must Read: Step-by-Step Guide to Open an Online Savings Account

Features of a Credit Card Against FD

1. Easier Approval:
   • Unlike unsecured credit cards, a credit card against FD is secured by your fixed deposit, making it easier to get approval even with a low credit score or irregular income.
2. Credit Limit:
   • The credit limit for these cards is typically set at 75% to 85% of the FD amount, providing substantial credit based on your deposit.
3. Interest Earnings:
   • The FD continues to earn interest, providing additional financial benefits.
4. Rewards and Benefits:
   • These cards often come with rewards, including cashback and reward points, enhancing their value.
5. Low Documentation:
   • Applying for a credit card against FD requires minimal documentation, making the process quick and straightforward.

How to use a Credit Card Against FD?

1. Building Credit Score:
   • Regular use and timely payments help in building or improving your credit score.
2. Emergency Fund:
   • It acts as an emergency fund, providing immediate access to credit when needed.
3. Maximising Rewards:
   • Use the card for everyday expenses to maximise the rewards and cashback benefits.

Benefits of Using Kotak811 for Credit Card Against FD

1. No Need to Maintain a Balance:
   • With no minimum balance requirement, you can focus on saving and earning interest through your FD without worrying about maintaining a balance in your savings account.
2. Instant Application:
   • If you already have a Kotak811 account, you can apply for a credit card against FD online hassle-free.
3. Easy Management:
   • Manage your account and credit card through the Kotak mobile banking app, making it convenient to track expenses, pay bills, and monitor your savings.
4. Auto Sweep Facility:
   • Kotak811 also offers an auto sweep facility where excess funds in your savings account can be converted into an FD automatically, helping you earn higher interest.

Conclusion

Opening a digital savings account and securing a credit card against FD is a smart financial move. It offers the convenience of online banking, no minimum balance requirement, and the opportunity to build or rebuild your credit score. With minimal documentation and an easy application process, it’s an attractive option for many. Start today and enjoy the benefits of a secure and flexible banking solution.