UNDERSTANDING ZERO-BALANCE SAVINGS ACCOUNT

Zero-balance savings account is one of the most famed savings bank accounts. From its name only it suggests a very basic meaning for itself, ZERO, in more specific words, nothing or nil. This makes it clear that it is an account that doesn’t require maintaining a minimum balance to function like other savings accounts. In such accounts, if you are unable to maintain the minimum required balance, you become liable to pay a maintenance fee. In such a case, a zero-balance account frees you from the pressure of maintaining the required minimum balance while enjoying all the usual facilities akin to a regular savings account. This further helps maintain your peace of mind and financial integrity. 

WHY YOU SHOULD GO FOR A ZERO-BALANCE SAVINGS ACCOUNT?

Legally known as a Basic Savings Bank Deposit (BSBD), a zero-balance account offers you an array of benefits that attract many users. 

• No Minimum Balance

Account holders are not required to maintain a minimum balance and can use even the last penny in the account. This allures more savings bank account openings as people are liberated from paying the low maintenance penalty. 

• Easy Opening

Opening a zero-balance account is not at all a complex or difficult task. This can either be done by going to the preferred bank branch and completing all the necessary formalities required to open an account, like all other savings accounts, or the quickest way to do so is by applying online on the site of your desired bank.

• Favourable Rate of Interest

Though there is no compulsion to maintain a minimum balance, still, if you manage to save some money in your account, you can get a good interest rate on that money. By doing so, you not only earn some interest on your savings but, at the same time, you ensure the safety of that money.

• Free Benefits

Cost-free facilities like providing a passbook and depositing cash and cheque at any branch to the account holders.

• Other Facilities

Access to a debit card, ATM card, and safe deposit locker facility is also available at nominal charges. Further, the use of debit and ATM cards makes you liable for many cashbacks and rewards. 

• Mobile Banking and Net Banking

Your time and efforts are saved as all the banking services are made available to you with just one click. Your laptops and mobile phones provide easy access to the services provided at the branch and save you from all the hassle. This makes all transactions easier for zero-balance account holders. 

Though in some domains zero-balance accounts restrict you as they have limited features, benefits, transactions, and credit opportunities, they’re still a great choice for salaried employees and students who, on a regular basis, are unable to maintain the minimum balance requirement and can easily keep track of all their transactions. These accounts also help improve the circulation of currency and discourage the hoarding of cash. 

TOP BANKS IN INDIA FOR ZERO-BALANCE SAVINGS ACCOUNT

1. IDFC FIRST Bank Pratham Savings Account

Rate of Interest – 4% p.a. to 6.75% p.a.

Special Feature – Unlimited ATM transactions

2. AU Digital Savings Account

Rate of Interest – 3.50% p.a. to 7.25% p.a.

Special Feature – Best interest rates and all services provided via video calls

3. Axis Bank PRIME Savings Account

Rate of Interest – 3% p.a. till INR 50 lakh and 3.5% p.a. above that

Special Feature – Cashback

4. Indus Delite Savings Account (IndusInd Bank)

Rate of Interest – 4% p.a. below 10 lakh and 5% p.a. above that

Special Feature – Cashback/Discount/Reward Points

5. Kotak 811 Full KYC Account (Kotak Mahindra Bank)

Rate of Interest – 3.5% p.a. till 50 lakh and 4% p.a. above that

Special Feature – Physical debit card available

6. SBI Basic Savings Bank Account

Rate of Interest – 4% p.a.

Special Feature – Easy opening for people who doesn’t have valid KYC documents

CONCLUSION

Zero-balance savings accounts exemplify the evolution of banking, transforming it into an inclusive and accessible space for all. The best banks in India have embraced this concept, offering a range of zero-balance savings accounts packed with features that cater to the diverse financial needs of individuals across the nation. Whether you’re a student, a low-income earner, or simply seeking straightforward banking, zero-balance savings accounts present a gateway to financial freedom.