5 Things You Should Know About Zero Balance Savings Account
Opening a savings account is one of the most accessible options to save your money, and while anyone can open a savings account easily without much knowledge of financial markets and other eligibility criteria. However, choosing the best savings account can sometimes be tricky and requires decision making.
If you are someone who remains worried about maintaining balance in your savings accounts, then a zero balance savings account is the one you need to know about.
So please read on to know everything about it!
What is a zero balance savings account?
As the name suggests, a zero balance savings account is the account that does not require you to maintain a minimum balance in your savings account, unlike the regular savings account.
Features of zero balance savings account:
- No Penalty: In a regular savings account if you don’t fulfil the minimum requirement required for a savings then banks charge a penalty fee, which varies from bank to bank. However, this is not the case with a zero balance savings account. You can deposit money in your savings account as per your convenience without any requirements of MAB (Minimum Average Balance).
- Benefits of Internet Banking: Zero balance savings account indeed has an advantage over regular savings accounts. Not, just it takes away a load of maintaining balance, but at the same time, it allows you to avail facilities like internet banking. Thus, it would help if you get your internet banking activation while opening the account
- Other facilities like ATM, Cheque Book: Just like a regular savings account, you get additional facilities such as an ATM/Debit Card to do electronic transactions with zero balance savings accounts. Banks also issue you a free cheque book.
- Your Account can become dormant: If you haven’t done any transactions from your zero balance savings account for a specified period it becomes inactive, and you need to activate it again to avail benefits such as ATM facility, Internet Banking etc.
- Rate of Interest: The rate of interest of zero balance savings account is similar to a regular balance savings account. Also, you can open the account singly or jointly with anyone. However, before opening a zero balance savings account, you must take financial advice from someone.
Banks with lowest interest rates on Zero Balance Savings Account
| Zero Balance Savings Account | Minimum Rate Of Interest |
| 811 Digital Bank Account – Kotak Bank | 3.50% |
| ASAP Instant Savings Account – Axis Bank | 7.10% |
| Smart Salary Advantage – Yes Bank | 5.00% |
| Basic Savings Bank Deposit – SBI | 2.70% |
How can you open a zero balance saving account online?
To open zero balance savings account online, you need to download the mobile application or visit the bank website. Below-mentioned is the steps to open the account through mobile application.
- Firstly, visit the play store on your smartphone.
- Now, download the mobile app of the bank in which you want to open the basic savings bank deposit account with zero balance.
- Create your account by following the instructions as they may appear in that particular app.
- Update your documents like Identity proof and address proof and fill the form to open your zero balance account online.
