As we start to earn money, we look for ways to become financially smart. That’s why we explore different options to fulfill our financial needs and conduct everyday transactions. Today, we’ll examine one of many accounts to help you determine whether it’s suitable for your needs. Kotak 811 is a digital savings account where you can keep zero balance, and even better, the bank won’t charge you when that’s the case. Opening the account is quite simple. All you need is a device with an internet connection, through which you can either download the Kotak Mahindra Banking app or visit their website, “www.kotak.com” and start signing up. Then, you’ll have to register using your Aadhaar and PAN card. With this overview, now let’s delve into the advantages and disadvantages of Kotak 811 account.
Advantages of Kotak 811 Account
Here are some benefits of the Kotak 811 account:
1. Easy account opening
The process of opening an account is so convenient that you don’t even have to step out of your home. There is no need for additional documents, you only need to keep your PAN card and Aadhaar number handy. You will be guided through the process of account opening, where you’ll have to provide these details. Also, providing PAN card details is mandatory, while the Aadhaar number is voluntary. After filling in all the details, you’ll be guided to complete the video KYC verification process. The bank agent will connect with you to carry out the KYC process. Upon verification, the account will be opened in a few hours.
2. Zero balance
The feature of zero balance distinguishes Kotak 811 from other savings accounts. Some bank requires maintenance of minimum balance and if the balance is less than that, they charge on non-maintenance. With Kotak 811 account, you don’t have to worry about this anymore. As mentioned, you can spend all your money and the bank won’t charge a penalty for not having any positive balance.
3. Digital banking
Kotak 811 account gives you a hassle-free banking experience. With a few clicks, you can easily track all your transaction. Along with this, it offers a bunch of features for easy online transactions. Take the example of the Scan & Pay feature, which is available in a mobile banking app. After you log in to the app, there is a section named Banking, where you will find the option to scan the QR code. Upon successful capturing of the QR code, the selected amount of money is transferred instantly.
4. Virtual debit card
Another perk of the Kotak 811 account is its virtual debit card. You can easily find it in your mobile banking app in the ‘Virtual Debit card’ tab. Here, you can conduct various transactions, including recharge and bill payments. The benefit of owning a virtual debit card is that you no longer have to worry about misplacing your card. And since it is in the virtual form and not the physical one, it can’t be stolen, allowing you to breathe a sigh of relief. Also, if you want a physical debit card as well, then you can easily apply for it.
5. Attractive interest
Compared to savings accounts offered by other banks, Kotak 811 account gives you higher interest. You can get 4% interest on savings accounts for a balance exceeding 1 lakh rupees. Kotak 811 Lite account is an exception though, which is one of the account variants. And for a balance of up to 1 lakh rupees, the interest rate is 3.5%. The other variants of Kotak 811 accounts are Kotak 811 Limited KYC account, Kotak 811 edge account, and Kotak 811 Full KYC account.
Kotak 811 Lite is good for you if you do not have your Aadhaar number, but it is still a temporary account that can be used for a year. And post that, completion of the full KYC process is mandatory. Failing to do so, will result in the discontinuation of services. You can go for Kotak 811 Limited KYC account if there are transaction limits to one lakh rupees. Kotak 811 Edge account is an easy-to-use savings account but requires maintenance of minimum balance. Lastly, if you are looking for a long-term option, we’d say go for Kotak 811 Full KYC account. Out of the several options, you can choose the one that suits your financial needs.
Disadvantages of Kotak 811 Account
After going through the advantages, if you are convinced that Kotak 811 account is fitting, you should go through the downsides as well. Here are some drawbacks of opening a Kotak 811 account.
1. Account restrictions
As mentioned earlier, there are variants of the Kotak 811 account. Among these, there are balance restrictions on Kotak 811 Limited KYC account and Kotak 811 Lite account. The total cumulative credits allowed for Kotak 811 Limited KYC account is Rs. 2,00,000 in a year and the maximum balance allowed is Rs. 1,00,000. Things are different with Kotak 811 Lite account. The total cumulative credits allowed is Rs. 10,000 in a calendar month and Rs. 1,00,000 in a financial year and the maximum balance allowed is Rs. 10,000 in a calendar month.
2. Chargeable physical debit card
Since Kotak 811 account is a digital savings account, you don’t get a welcome kit like other savings account. You only get a virtual debit card. If you want a physical debit card, you can make a request, but you will be charged. Moreover, the charges will be Rs. 199 + taxes per year, which is subject to revisions. Along with the chargeable physical debit card, the other downside is that you won’t receive a checkbook by default. However, you can request the same using the mobile banking app in the Service Request section.
3. No joint account
If you are someone who prefers opening a joint account with the person you trust for a convenient banking experience, then Kotak 811 account is not for you. In this account, you don’t get the option to hold your account with another person. The reason is, the account is only intended for single users. Since you cannot open a joint Kotak 811 account, so saving money together is not possible here.