Owing to the benefits offered in terms of secured transactions, guaranteed interests and more benefits, savings accounts are highly preferred bank account across the globe. Even though there are various types, a few of them are a bit more complicated to manage than the others. Thus, if you are looking for a simpler and easy-to-manage savings account, a zero-balance savings account: Online Zero Balance Savings Account or Basic Savings Bank Deposit Account (BSBDA) might top your list. This article contains the differences between BSBDA and zero balance savings accounts to help you get a brief idea about both types of zero balance savings account.
Savings accounts are beneficial because they offer you a higher limit to accomplish the financial transactions and a lower deposit limit. You can either go for the online procedure and apply for it or select the traditional offline method, whichever simplifies your ease. However, know that you must also have your KYC (Know Your Customer) documents verified for opening a savings account in any bank.
As far as the minimum balance is concerned, for a savings account in any public sector bank, you would have to maintain a minimum account balance of Rs. 500 to Rs. 1,000, depending on the chosen bank. And as for the private sector banks, the account must have a minimum balance of Rs.5,000 to Rs.25,000, based on the selected bank’s guidelines. At times, when you’re in urgent need of money, withdrawing an amount may leave a balance lesser than the minimum required amount. This can even result in penalties and fine, causing a bigger hole in your pocket. If this seems like a hurdle, you can go for a BSBDA or a zero-balance online savings account.
Also, keep in mind that having a BSBDA also comes with other limitations, like the number of transactions allowed in a month among others. This zero-balance account is aimed to reach out to individuals who don’t have any bank account.
Some banks may also consider the salary account as a zero balance account as there is no minimum balance requirement on them.
|Factors||Zero Balance Online Savings Account||BSBDA|
|Who can open it?||Any new bank customer||An individual having no prior bank accounts|
|Mode of opening||Online application using the official website or mobile banking application||Visit the nearest branch of the chosen bank and get help from an executive to open a BSBDA|
|KYC||You must first fill in the Aadhaar Number and your registered mobile number. You will then receive an OTP. Further, you are required to complete the KYC within 12 months of registering.||You must submit the hard copy of all the KYC documents to the bank’s branch office with which you are registering for the savings account.|
|Debit Cards||Depending on the bank branch, a range of debit card options, including the Master Card, VISA card, or RuPay card.||Only RuPay Card is available|
|Availability of joint accounts||Based on the chosen bank, its regulations, and guidelines, you can apply for a joint account. However, many online zero balance savings account don’t offer joint accounts. You may have to complete the full KYC process or visit the bank branch to upgrade your account to open a joint account.||Individuals can open joint account in BDBDA account with spouses or family members.|
|The withdrawal limits||Accountholders can make unlimited cash withdrawals in a month. However, the number of free transactions will depend on your location with five maximum free transactions.||You can only withdraw cash for a maximum of 4 times in a month including ATM usage.|
Now that you have understood both the aspects of both these accounts, comprehending the benefits or disadvantages of each one of them would be easier by now. So, open an online zero balance savings account with no minimum balance commitment if you already have a savings bank account.
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