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Monday, April 4, 2016

Migrating to Y generation savings bank account to make money work

I don't recollect when was the last time i booked my bus ticket purchased at an offline store. That's the important of RedBus and other's, who created the impact and convenience for this Y generation.

Y generation account opening style

It always pissed me when i want to reach out to a bank to open my saving account. I don't really understand why should i carry my photocopies and do self attested address and ID proof even in 2016 where at the other side we promote Go Green and eco friendly by eliminating physical statements.

It's so embracing to see that banks still depend on a photocopy instead of just going ahead and scan my original address and ID proof which is more reliable than a photocopy which could be easily forged.


I came to know about Digibank when one of my colleague said there is a bank which offers account opening which is truly paperless. I was completely taken away with the product design and the simplicity in UX for the new registration.

I had opened my digisaving account with just my aadhaar number and PAN number sitting at my office in no time. The In Person Verification(IPV) was done seamlessly by a third party company who used my finger prints to verify my aadhaar linkage with the account.

The very next day i received my physical debit card powered by VISA. That was a moment of truth for me which proved the technology and speed married to make a common man life easy.

Making it as my primary bank account

I was informed that the bank has one of the highest % of interest but the minute i learnt that the bank is offering interest debit every month made me to give it a try. To be honest once i did my first transfer and experienced the speed of IMPS without any fee unlike any other banks made me move all my money from different accounts into DBS.

Logical decision to continue using it

After using the bank for past one month i'm pretty sure that this is THE bank i was expecting to use.

Some of the reasons are:

  • India's inflation is ~7% in the last few years, which means if i have Rs.100 in my bank on Jan 2015, it is worth only Rs.93 in Jan 2016. So, it's no brainer that having money in a saving bank account which gives us just 4% interest is making loss for sure. DBS gives us 7% interest rate so atleast i'm not loosing money by having it in bank account. 
  • I had took 6 months bank statement from my previously using primary bank account and found that i'm making 15 transactions per month on an average. This includes transferring funds to family and friends using NEFT or IMPS. NEFT charges and IMPS charges are ~Rs.5. So, 15*5= 75 Rs. Atleast i have saved Rs.500 every 6 months by just using Dibibank now.
  • There is no withdrawing fee in any ATM in India which again helps me save another 5*20 = 100Rs per month
  • Just by using Digibank for one month I got interest of Rs. 124.24 and there is no change in my spending style, comfort or pattern.
  • The app has inbuilt money manger which helps me add notes to each transaction so i don't miss why did i spend the money for and transaction history is available so i don't need to maintain an excel sheet now.
  • No need to worry about my netbanking credentials because it's mobile only platform and also allows me to choose my username for login.
  • This interest rate is near to FD (~7.9%) without lock-in and without sweep account
  • As per Income Tax department, upto Rs. 10,000 is tax free from saving bank so why not make use of it by getting the best % of interest from your account without any pain.


Anyway my first experiment for making money work for me in my saving bank account was super success and wanted to share it with you my friends so that you could also get benefited.

Please let me know if it was helpful and also any tips you know on saving bank account.

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