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A zero balance account vs a regular savings account

Switch to a zero balance account and let your bank work for you.

Anita Shetty, who is in her late 20s, recently started working at a well- known organization. Like others of the same age, paying her bills on time and saving up as much as possible always is a priority. She, like many others, has 2-3 regular savings accounts in different banks. With rising costs for everything around her, she feels that she can get more from her current saving account and is looking for better deals and benefits in the market.

Many of us may be facing a similar dilemma as Anita, where we feel that we could be getting more from our bank accounts. Paying bills as well as striving to maintain a minimum balance in our bank account does not come easy. This is where a zero balance account comes into play. You need not worry about having a low balance in your account anymore. Browse through to learn how having a zero balance account can definitely help you:

Specialized Zero Balance Salary Account:

If you are like Anita, who recently starting working for a new organization, this new organization will be opening a salary account for you.

In this situation, you can opt for a zero balance salary account, which allows you to not maintain a minimum balance in your account. Take your pick with the below listed zero balance salary account:


Kotak Mahindra Bank provides a Corporate Salary Account for salaried persons, as a zero balance savings account with an interest rate of 6% per annum. This savings account has varied types. You can also avail free office or home banking facility with this account, as well as SMS Banking through the Kotak App.


HDFC Bank offers different Salary Accounts to your banking experience convenient and easy, and with customizable options. These accounts come with a wide range of offers and deals and a 5% interest rate.


ICICI Bank provides a Salary Account that gives its account holders superior benefits and privileges. As an account holder, you can also earn reward points like carrying out transactions like your paying your bills or doing your shopping online. 

Paying excessive fees:

If you relate to Anita, you probably believe that your bank account should be working for you, as it should be. But, do you find yourself paying a good sum of your money on banking facilities? Well, we got good news for you. When you open a zero balance account, there are many free deals that you can opt for. For example, you must be carrying a debit card for all your bank accounts. Of course, these cards do not come free as your bank charges a nominal annual fee of around Rs.200 – 500 plus taxes.

But, as most zero balance accounts work on an online basis, you do not need a plastic debit card to carry out transactions. You generally get a virtual debit card to help you carry out your banking duties.

Maintaining a minimum balance for more than one account:

Most banks ask you to maintain a minimum balance of at least Rs.10,000. Anita and you are definitely sailing in the same boat if you have 2-3 regular savings accounts. This means that you have to pay quite a sum to fulfill the minimum balance requirement. By paying such an amount, it is possible that you may lose out on the interest earned.

This is where a 0 balance saving account can help you. There is no need for you to maintain a minimum balance in your account; but at the same time you earn the same interest as that of a regular savings account. This is a definite win- win situation.

Easy to open:

You’ve probably got enough on your plate if you are someone like Anita, with a new job and loads of pending responsibilities. Thus, there is no need for you to take time out of your busy schedule and visit a bank to make a savings account. To open a zero balance account, all you need to do is to visit your bank’s official website and key in essential details and you are good to go! You can set up a PIN after and start using your account immediately.

To conclude, a zero balance account may definitely seem like a saving grace, but it does come with its few restrictions and limitations. For example, the balance in your account generally cannot extend Rs.50,000. Thus, we suggest that you accurately read-up and compare the different 0 balance saving accounts in the market, and pick up the best bank account to suit your needs.

Related articles:

Zero Balance Savings Account

Kotak 811 Zero Balance Account- Kotak Mahindra Bank


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