Best Zero Balance Savings Accounts for Indian Citizens
Savings Account that allows zero balance in the account without any charges is known as zero-balance account. According to the Reserve Bank of India (RBI), this account is also known as Basic Savings Bank Deposit (BSBD) account that encourages people to open more savings accounts.
Various banks in India offer the zero-balance savings account facility for Indian citizens benefiting those who does not have a steady income or wish to keep a low account balance. Indian citizens who do not have a steady source of income or wish to keep a low account balance can opt for zero-balance savings account offered by various banks in India. These accounts do not charge any penalties on zero balance and come with multiple benefits for the accountholders. Here are more details that you must know about zero-balance savings accounts for Indian citizens.
Benefits of Zero Balance Savings Account:
The following is the list benefits of zero-balance savings account:
- No minimum balance required
- Encourages more savings account opening
- Offers various fee benefits, such as free cashbook, cheque deposit at any branch, etc.
- Provides debit or ATM card facility along with deposit locker facility at nominal charge
- Offers cards for digital payment that uses the electronic payments gateway systems such as RuPay to make payments
Top Zero-Balance Savings Accounts for Indian Citizens:
Bank | Features |
Free RuPay debit card or international debit card Fund transfers through NEFT and RTGS IVR based phone banking Four free cash withdrawals at other bank ATMs | |
Basic KYC documents are required. The account includes a free debit card, four free cash withdrawals from other bank ATMs, and unlimited free cash withdrawals from SBI ATMs. | |
Free RuPay debit card with a cash deposit limit of up to Rs. 10,000. Includes four free transactions at other bank ATMs each month. | |
Indian citizens aged 18 and above are eligible for a free debit card, passbook, and cheque book. They also receive 5 free transactions each month and free fund transfers via NEFT and RTGS. | |
Internet and mobile banking, along with a free cheque book, passbook, and debit card. | |
Customers can invest in fixed deposits with a maximum deposit limit of Rs. 1 lakh per account. To continue using the account after one year, customers must submit their signatures. | |
Free International debit card, Discounts on locker facility, Doorstep facilities | |
Kotak Mahindra Zero Balance Account (Kotak 811) | Customers can use mStore to shop online Fund transfers through NEFT and RTGS Free virtual debit cards Scan and pay option |
Free RuPay debit card Free passbook and cash deposits Single and joint accounts are available Customers can access 15,000+ ATMs all over India | |
Avail attractive interest rates Free RTGS and NEFT payment facilities International Platinum Chip Cards can be availed Free demand drafts | |
Unlimited withdrawals can be made in a month Free cheque books Unlimited deposits can be made in a month Free debit card |
Check out Top Bank Savings Account Interest Rates
Documents Required to Open a Zero Balance Savings Account:
The documents required to open a zero-balance savings account are as follows:
Latest Interest Rates for Zero Balance Savings Accounts:
Name of the Bank | Name of the Zero-Balance Savings Account | Interest Rate (p.a.) |
Indus Small Savings Account | 3.00% - 7.00% | |
Pratham-Savings Account (BSBDA) | 3.00% - 7.25% | |
Digital Savings Account | 3.50% - 7.50% | |
811 | 3.00% - 4.00% | |
Basic Banking Account | 2.75% - 5.50% | |
Basic Savings Bank Deposit Account | 3.00% - 3.50% | |
Basic Savings Account | 3.00%- 3.50% | |
Basic Savings Bank Deposit Account | 2.70% - 3.00% | |
Utkarsh Bank | Utkarsh Basic Savings Bank Deposit Account (BSBDA) | 4.00% - 7.75% |
AU Small Finance Bank | 3.00% - 7.25% |
Features of Zero Balance Savings Account:
- No condition of maintaining a minimum Monthly Average Balance or Quarterly Average Balance.
- Free ATM/Debit card that can be used to transact worldwide.
- Free cheque book (fixed number of leaves) per year. A nominal fee is levied in case you request for another cheque book.
- Complimentary passbook is issued as part of the welcome kit, at the time of opening the account.
- Access to internet banking and online transactions and standard charges for payment transfers.
- Specific number of free transactions every month, subsequent transactions are billed a nominal fee.
- Special privileges and offers for salary account holders based on the category of company/institution.
Pradhan Mantri Jan Dhan Yojana (PMJDY) Zero-Balance Savings Account:
Customers may open a zero-balance savings account through the Pradhan Mantri Jan-Dhan Yojana (PMJDY) scheme in addition to the basic savings account or zero-balance savings account offered by banks across the nation.
The Modi-led Government launched the program in 2014 to provide financial access to everyone in the nation, even those without any, particularly in rural areas. Customers can open an account under this system without any KYC documentation; their signature and fingerprint would be sufficient as proof of eligibility.
Features & Benefits of Pradhan Mantri Jan-Dhan Yojana (PMJDY):
Some of the features and benefits of the Pradhan Mantri Jan-Dhan Yojana (PMJDY) are listed below:
- No minimum required balance.
- Customers are eligible for accident insurance cover of Rs.1 lakh.
- If customers have subscribed to Government schemes or subsidies, they can avail for the direct benefit transfer through this account.
- After completion of 6 months of holding the account, customers can avail the overdraft facility.
- Free RuPay debit card when opening the account.
- No charges for a using an ATM debit card.
- Free passbook and cheque book when opening the account.
- Free net banking facilities.
- Can be used as a salary account as well.
- No cash deposit transaction fees.
- Free NEFT and RTGS facilities.
- Locker facilities available.
Conclusion
Zero balance savings accounts are a practical option for managing finances without worrying about maintaining a minimum balance. With various banks offering attractive features and interest rates, it's easy to find one that fits your needs. Compare options to choose the best account for your financial goals.
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FAQs on Best Zero Balance Savings Account for Indian Citizens
- Is it possible to open a joint basic savings account?
Yes, it is possible to open a joint basic savings account. For this, the second-party has to be related to the primary account holder and both have to be present when opening the account.
- How is a zero-balance savings account different from other savings account?
Generally, banks have the concept of minimum Monthly Average Balance (MAB) for a savings account. When the account balance does not meet the MAB requirements, non-maintenance charges will be levied. For a zero-balance savings account, there is no MAB requirement.
- What is the initial deposit for a zero-balance savings account?
A zero-balance savings account has no minimum balance requirement, so no initial deposit is needed. In short, it can be opened for free.
- How can I access my zero-balance savings account?
You can access your zero-balance savings account via the internet and phone banking facilities, at an ATM and at the bank if required.
- Is there a difference between PMJDY zero-balance account and the bank’s?
While the nature of the zero-balance savings account is the same, customers to the Pradhan Mantri Jan-Dhan Yojana (P.M.J.D.Y) are eligible to opt for Government subsidies and other such benefits offered by the Government of India.
- What will happen to my savings account if I don't use it for a long time?
Your savings account will become dormant if there are no customer-initiated transactions for a specified period of time. Transactions through ATM, internet and phone banking will not be allowed by the bank if your account becomes dormant and you must activate it again to continue enjoying the benefits.
- Can NRIs (Indian passport holders) open zero-balance digital savings accounts?
Yes, NRIs (Indian passport holders) can open zero-balance digital savings accounts after completing the standard process and KYC online.
- Can I have multiple Basic Savings Bank Deposit Accounts in the same bank?
No, you are allowed to hold only one 'Basic Savings Bank Deposit Account' in a bank.
- Do banks impose any age or income criteria to open a zero-balance savings account?
No, banks are advised not to apply limits such as age and income criteria to open a zero-balance savings account.
- Can I open other deposit accounts in addition to the Basic Savings Bank Deposit Account in the same bank?
Yes, you are allowed to hold other deposit accounts in the bank where you hold a Basic Savings Bank Deposit Account.
- Which banks provide a zero-balance savings account?
All banks must provide basic savings accounts to customers, according to the RBI and government regulations.
- Is it possible to change my regular savings account to a zero-balance savings account?
You might not be able to convert your savings account to a zero balance savings account because zero-balance accounts are designed for new bank customers.
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