With the rise of digital banking, many of our regular banking activities can now be done online with minimal paperwork and without standing in line for long hours. While online banking offers unparalleled convenience, a common dilemma remains whether or not to open a Savings Account online.
In this blog, we will explore the security features of online and traditional Savings Accounts to help you choose a safer option.
Understanding Online and Traditional Savings Accounts
Online Savings Accounts
An online Savings Account, whether a regular Savings Account or a zero-balance Savings Account, is a bank account that can be easily accessed and maintained via your bank’s website or app. These accounts offer paperless banking as one of their perks, along with quick transfers, 24/7 assistance and accessibility.
Traditional Savings Account
A traditional Savings Account is an account which requires you to visit a bank branch or account opening and other processes. While it provides you with in-person services, it involves a lot of paperwork and takes up a lot of time.
Key Security Features of Online and Traditional Savings Accounts
| Parameters | Online Banks | Traditional Banks |
| Multi-Factor Authentication | OTPs, fingerprints, passwords, security questions and more | Some banks offer MFA for their mobile banking |
| Account Access Control | Users have 24*7 to access their Savings Accounts and their funds | Requires visiting a branch to block lost funds |
| Physical Document Security | No risk of stolen paperwork | Paper-based records that can get stolen or lost |
| Customer Support | Quick resolution via chat, phone and email | In-person assistance at the branch |
How Secure Are Online Savings Accounts?
Before you open a Savings Account online, let’s take an in-depth look into the security measures commonly used by banks for their digital account holders.
- Multi-Factor Authentication: To keep your data secure, online banks use multiple levels and forms of authentication. This means you will need more than just a strong password to access your information and funds. You can also use a security question, PIN, or ATM card number.
- Encryption: Banks offer end-to-end encryption using efficient encryption software to protect your personal data and online transactions.
- Fraud Monitoring and Prevention: Online banks use AI-driven technologies to identify fraudulent activities and raise alarms to prevent them.
- Automatic sign-out: Most online banks will automatically log out of your account after a certain period of inactivity to prevent your information from getting unconsensually accessed by a third party.
Are Online Savings Accounts Safer?
Both online and offline Savings Accounts have a good security network. However, online banking offers more advanced detection and prevention of fraudulent activities. Features such as encryption, AI fraud detection and real-time alerts can make online Savings Accounts highly secure. However, you, too, as users, need to be on your toes to maintain the security of your accounts.
Tips to Keep Your Online Savings Account Safe
Here’s how you can keep your online Savings Account safe:
- Use strong passwords and change them at regular intervals.
- Enable multi-factor authentication(MFA) for additional security measures.
- Avoid logging into your account using public WiFis
- Monitor your bank statements regularly to spot any unauthorised transactions.
- Report any suspicious activity to your bank immediately.
Conclusion
Online Savings Accounts provide better digital security and fraud detection. If you want to open a Savings Account online, use strong passwords and enable security features, your online banking can be just as secure as traditional banking.