With the intention of encouraging individuals to make savings as well as open a Savings Account, banks offer a zero-balance account. The idea zero-balance account is simple. It is a Savings Account, but here you do not have to keep a certain balance. Despite this, you will still get the usual services that come with a normal Savings Account. Let us know everything about the zero-balance account and also know which bank is best for zero balance account…
What Does It Mean By Zero-Balance Savings Account?
A zero-balance account is a savings account in which you do not have to keep any minimum balance. It can be opened without depositing any money and can be kept running without any balance. Since it can be opened only on zero balance and can also be opened on zero balance, hence it is called zero balance account.
Zero Balance Account facility has been implemented with a view to inculcating the habit of saving and providing general banking facilities to low-income people. “Pradhan Mantri Jan Dhan” Account is also opened as Zero Balance Account. But do you know which bank is best for a zero balance account? Let us know in this article below
Zero-Balance Account’s Restrictions On Withdrawing And Depositing
Surely, a zero-balance account is a boon for lower-class families. However, there are some restrictions on withdrawing and depositing money with a zero-balance account. So before knowing which bank is best for zero balance account, let us know the restrictions first. So, the restrictions are as follow-
Restrictions On The Number Of Deposits And Withdrawals
In a zero-balance account, normally a maximum can be deposited up to a maximum of 1 lakh rupees in a year. In that also, the balance present at any one time cannot be more than 50 thousand rupees. During any one month, no deposit or withdrawal can be made more than Rs 10,000.
Limited Number Of Transactions Allowed
With a zero balance account, you get a limited number of transactions every month. Banks generally offer withdrawals only 4 times. If you withdraw money more than this, then the bank converts your zero-balance account into a Regular Savings Account. In such a situation, some banks only charge extra fees and maintain the account as a zero-balance account.
KYC To Be Completed Within 1 Year
Zero balance accounts are valid for 1 year only. Submit their full KYC identification and address documents within 12 months is mandatory. If not doing so, that account will be closed.
Facilities With Zero Balance Saving Account
With a Zero Balance Savings Account, you get these following types of services-
Just like a savings account, you can make money transactions, recharge money, pay bills or fees, do online shopping with a Zero Balance account.
No Need To Maintain Minimum Balance
In a zero-balance savings account, you do not have to have any minimum balance. If there is no money in the account, it will not be closed nor will there be any penalty. Whereas, the penalty is levied for not maintaining minimum balance in a normal savings account.
Get Free Passbook
Like a normal savings account, a free passbook is issued with a zero-balance account. In this, all the records related to your transaction are recorded. However, passbooks are not issued with some zero balance accounts opened online.
Interest Accrues On Deposits
You get interest rates like normal savings accounts on the amount deposited in a zero balance account. This can range from 3 to 6 percent annually, depending on the individual bank. In private banks, interest rates are higher than in public banks.
Net Banking and Mobile Banking Facility
Like a normal savings account, Internet banking and mobile banking are also available with zero balance account. That is, you can do online transactions sitting at home with the help of your computer or smartphone. You can do bill payment, recharge, etc.
ATM Card Facility
You also get a Debit card with a zero-balance account. You can use this at any bank’s ATM to withdraw money, view mini statements, and also use other services. You can also pay when you shop at stores, stores, or e-commerce sites.
Know Which Bank Is Best For Zero Balance Account?
For clienteles in India who wish to open a savings account but don’t want to experience the hassle of keeping a minimum balance in their account, can opt for the zero-balance savings account. So, let us know here which bank is best for zero balance account
Top Zero Balance Savings Account
|Account Name||Bank Name||Rate Of Interest (%)|
|Pratham–savings account (BSBDA)||IDFC Bank||6% to 7%|
|Digital Savings Account||RBL Bank||5% to 6.75%|
|Indus Small Savings Account||IndusInd Bank||4% to 6%|
|811||Kotak Mahindra Bank||4% to 6%|
|Basic Savings Account||Axis Bank||3.50% to 4%|
|Basic Savings Bank Deposit Account||HDFC Bank||3.50% to 4%|
|Basic Savings Account||ICICI Bank||3.50% to 4%|
|Basic Savings Bank Deposit Account||State Bank of India||3% to 3.25%|
|Basic Banking Account||Standard Chartered Bank ||0.5% to 4.90%|
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