Zero Balance Saving Accounts - Want to Open it?

Zero Balance Saving Accounts - Want to Open it?

A Zero Balance Savings Account is a necessity of the time. A zero balance savings account is one in which it is not necessary to maintain a balance. You can keep a zero balance in these sorts of accounts and not be penalised for that.

So, if you don't want to keep a total monthly balance (MAB) in your savings account, a zero balance account is the way to go. This account could be opened online with the press of a button. The vast majority of banks offer a Zero Balance Savings Account. It is challenging to discover the most acceptable bank that provides this service.

Here is a fully prepared list of everything you need to know about zero balance saving accounts.

What exactly is a zero balance savings account?

Account in which you are not required to keep a minimum balance. You are not subject to any bank penalties if you maintain your account balance at zero. This account was created primarily to assist salaried and low-income individuals. Even if you do not fall into one of these two main categories, you can create a zero balance account with your completed KYC.

Background

The Government of India launched the zero-balance savings account under the Pradhan Mantri Jan Dhan Yojana (PMJDY) initiative to make banking services available to everybody, particularly those living in rural semi-urban regions.

As a result of this action, millions of residents in the nation now have access to financial services. In essence, a week after the Pradhan Mantri Jan Dhan Yojana (PMJDY) initiative was launched, it beat the Guinness World Record for the most banking accounts created in a single week.

Ever since, institutions from across the nation have begun to provide zero-balance accounts, commonly known as Basic Savings Bank Deposit accounts (BSBDA). Those who do not want to deal with the burden of keeping a minimum monthly average amount can open a zero-balance savings account.

Requirements

The following are the requirements for opening zero balance savings account online:

• Aadhar Card
• Mobile number
• Smartphone with Linked Adhar Sim Card, Computer (PC)
• Internet Connection

An individual can create a zero-balance savings account with minimal paperwork, in some circumstances simply fingerprints or signatures and a picture of the user. In this situation (with simply the fingerprint, signature, and photograph as verification), the person opening the account must provide the KYC papers within a year of creating the account.

Features

A zero balance savings account has the following features:

• No minimum balance requirement: As the name implies, there is no necessity to keep a minimum amount in the account. In the event of a zero balance, there are no penalties.
• Enables digital payments: Account users may easily make digital payments utilising various online banking services.
• ATM access: Because the account holder will be given a debit card along with the account, they will be able to access the account and deposits at any time and from any place.
• Depositing cash and checks: A bank will provide the same depositing options for a zero balance savings account as it would for a regular savings account. This covers services like cash and cheques deposits. Locker facilities are also available, albeit the terms and restrictions differ from bank to bank.

Demerits

• Based on the institution, banking transactions (deposits and withdrawals) are normally limited to 4–5 per month.
• There is a limit to the amount you may deposit with the bank (typically one lakh at any given time). Extending this restriction will result in a different process depending on the bank.
• Financial transaction limitations must also be adhered to in compliance with the policy of the bank. Suppose the specified bank transaction cap is reached. In that case, you will not be able to use free transactions (even if they are available).
• The availability of cheque books is similarly limited, if not completely remitted.
• Inter-bank and intra-bank costs, often lower or not charged on Standard Savings Accounts, might well be related.

Famous Zero balance savings account

These are the most prominent zero balance saving accounts in the nation.

• Kotak Mahindra Bank

Kotak 811 Digital Bank is one of Kotak Bank's most exemplary savings accounts. 811 is a savings account with no minimum balance that you may start online using your smartphone or laptop.

You may complete the KYC process in a single video call. Your account will be active in a matter of minutes.

You will receive 4% interest on your bank account, which is more than banks like SBI, HDFC, and ICICI.

• State Bank of India

SBI branches and ATMs may be found almost wherever in the country. SBI has designated branches and extension centres in several schools, institutions, and universities.

All of this saves students time and makes it easier for them to pay their regular and test fees. Furthermore, students have access to financial services with minimal fees.

• IDFC First Bank

IDFC Bank has one of the lowest interest rates on savings accounts, offering up to 7%. The needed balance is more than Rs. 2 Lacs.

Even if your balance is less, you may earn 6%, which is 2.5 percent greater than the interest rate given by other banks.

The most significant advantage is that there are no fees or charges if you fail to uphold the minimum balance.

Even if you do not maintain an average monthly balance, IDFC Bank only charges you for specific operations such as re-issuing a cheque book, DD, renewing a debit card, and ATM transactions that exceed the standard limit.

Conclusion

The Zero Balance Account is an excellent financial solution that will assist you in difficult circumstances. When choosing a ZBA, you must consider factors like rate of interest, costs, and so on.

We hope we have covered all of the top Zero Balance Accounts. Please let us know whether any information is missing in the comments section.

Also read about best zero balance account in india 2022