A zero-balance savings account is one type of savings account where there is no requirement to maintain a minimum balance, i.e., the minimum balance can be zero, and that too without any penal charges. It is also called a Basic Savings Bank Deposit (BSBD Account). Zero-balance account holders are eligible to get the same benefits as that of savings accounts. One can get a single account or even a joint zero balance account opened to get the desired benefits. One must remember that banks allow a limited number of transactions, usually that ranges around four per month. And if this limit gets crossed, your bank account will get converted to a regular savings account. It provides plenty of services, including transactional, commercial, and retail, with its seamless technology. Features of Zero Balance Savings Bank Account Mentioned below are the features of Zero Balance Savings Bank account: Zero-balance savings accounts are an effective tool that helps manage cash flows with high efficacy. Instead of spreading your funds into multiple accounts, you can pool them into one main account. This account is accessible to all kinds of individuals. There are minimal or no account maintenance fees that help users avail of a cost-effective banking experience. It comes with user-friendly mobile and online banking benefits. Users can get access to their bank accounts easily, check their balances, track their transaction history, etc., from anywhere and at any time. It is designed to provide maximum benefits to the account holders, like reward points for active transactions, lifestyle and privilege offers, solutions to trading and portfolio, flexible money management, and special banking facilities for senior citizens with high rates of interest. The account can be maintained from anywhere in the world and can be accessed to make utility bill payments, make NEFT or RTGS, or get access to any other services. For example, if you maintain an account with SBI and want to make NEFT, you just need to take the SBI NEFT Form Fill online and submit it to get the same processed. It can be helpful in an unforeseen event or emergency as one can set aside a part of their income into their account to ensure that the funds are readily available. It helps to monitor and control the subsidiary accounts on an individual basis, set the limits for a transaction, and track the movement of cash, which further ensures a better vision of finances. Limitations of Zero Balance Savings Bank Account Mentioned below are the limitations of a Zero Balance Savings Bank account: No interest can be earned on the zero-balance savings account. There may be an upper limit on the number of free transactions or withdrawals within a specified period. There may be an additional charge or restriction on the activities if the limit is crossed. Some zero balance accounts have eligibility criteria, like age parameters, income requirements, employment conditions, etc. Some features are not available in zero balance accounts as present in the premium or specialised accounts, like automatic bill payments, issue of chequebooks, international banking services, etc. Best Zero Balance Savings Accounts in India Some of the best Zero-balance savings accounts available in India are: Name of Bank Account Interest Rates State Bank of India Basic Savings Bank Deposit Account (BSBDA) 2.70% Standard Chartered Bank Basic Banking Savings Account 2.75% IDFC First Bank Pratham Savings Account 3.00% HDFC Bank BSBDA 3.00% YES Bank Smart Salary Advantage 3.50% Kotak Mahindra Bank 811 Digital Savings Account 3.50% AU Digital Savings Account 3.50% IndusInd Bank Indus Delite savings account 3.50% Utkarsh Bank BSBDA 4.00% RBL Basic Savings Account 4.25% Steps to open a Zero Balance Savings Account? Mentioned below are some easy steps to open a Zero Balance Savings Account: Step 1: Launch the official portal of the bank and choose “Zero Balance savings Account”. Step 2: Fill out the application form. Step 3: Upload the documents required for KYC purposes. Step 4: Click on “Submit”. Eligibility Criteria Mentioned below are the eligibility criteria to get the Zero Balance Savings account opened: An applicant should be a minimum of 18 years of age. An applicant should be a citizen of India. These may vary depending on the bank account you choose. Documents Required Mentioned below is the list of documents required to open a zero-balance savings account: Identification Proof: Aadhaar card, PAN card, driving license, etc. Address Proof: Utility bills, rental agreements, etc. Business Proof: Partnership deed, GST registration form, etc. Steps to close a Zero Balance Savings Account? Mentioned below are some easy steps to close a Zero Balance Savings Account: Step 1: Visit the nearest home branch of the bank. Step 2: Fill out the form for account closure with accurate details and cross-verify them. Step 3: Mention the reason for the account closure. Step 4: Provide the bank with your passbook, chequebook, debit card, and photocopy of proof of ID. Step 5: Pay, if any kind of charges apply, to get your account closed. Things to be kept in Mind related to Fees and Service Charges to open a Zero-balance savings account Every type of bank account needs to maintain an average monthly balance, and if the same is not done, a penalty will be levied. One needs to check if this penalty is not very high. Users are required to check if the number of withdrawals from ATMs is charged or free or, if free, to what extent. Also, consider if the bank charges are too high or if the bank is providing a good debit card. Applicants must also check whether these transactions are charged or free. For example, if an individual holds a zero balance account in Maharashtra Bank, he/ she can either enquire about the charges or make a Bank of Maharashtra Balance Check to know whether any fees are charged or not by tracking the transactions. Check the charges for a cheque book. Check whether the cash transactions are charged or free. How to Open a Zero balance account Online? Mentioned below are the steps to open a zero-balance account online: Fill out the application form. Provide all the personal and identification information required. Upload the documents required. There might be some additional steps like e-verification or video KYC.
