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Quintessential guide to having a Zero Balance Savings Account

When it comes to monthly maintenance of minimum balance for your current or savings account, most of us end up paying significant charges for non-maintenance.

To ease the burden of non-maintenance fees charged by banks, when the monthly balance falls short of the limit specified by the bank, zero balance accounts came into existence. These accounts offer you the luxury of no minimum balance maintenance and no penalties for failing to do so!

Why should you opt for a zero-balance account?

Here are some things to know about the zero-balance account:

  • You do not have to maintain any minimum amount per month or take care of the average yearly or quarterly amount in your bank account.
  • The zero balance accounts offer exclusive benefits to salaried employees of specific institutions or companies.
  • Banks provide a free ATM or debit card as soon as you open a zero-balance savings account.
  • Furthermore, zero-balance bank account’s ATM or debit card can be used all around the world.
  • The bank will provide you with a kit and a free chequebook and passbook.
  • Additionally, depending on the bank of your choice, you may get extra benefits.

What will you need for a Zero Balance savings account?

The requirement of the documents may differ from bank to bank, but here is a general list of what you may need:

  • Your ADDHAR Card and PAN Card/Form 60/61.
  • Two passport size photographs.
  • Furthermore, you will also be required to fill out KYC documents

It must be remembered that you cannot open an account unless you finish your KYC documentation. Other than this, some banks may not allow you to open a zero-bank account if you already have a savings account in the same bank.

Who can have a zero-balance savings account?

Any Indian citizen can have a zero-balance savings account. However, the Indian citizen applying for the zero-balance savings account should be of or above the age of eighteen to open an account.

Other than this, the following entities cannot have a zero-balance account with any bank:

  • A member of a HUF
  • An NRI

Benefits of a Zero Balance Savings Account

There are multiple benefits of a zero balance savings accounts. Here is a short list of the various benefits:

  • No minimum balance maintenance: This is probably the biggest reason for the popularity of these accounts. All banks have different limits for minimum balance maintenance for different accounts, but zero balance accounts in every bank have no such balance restrictions, which is a huge relief.
  • No fee deduction for non-maintenance: As mentioned above there is no minimum balance to be maintained. And that is why there are no fee deductions from the accounts for any failure to do so.
  • Direct Benefit Transfer: Another significant benefit of the zero balance accounts is that through your AADHAR they are linked to all government schemes. This allows you to benefit from these schemes directly and you do not need to handle any paperwork
  • Insurance Cover: A zero balance account will offer you benefit of an accidental insurance cover of up to one lakh rupees.
  • Free Benefits: A zero balance account offers you the benefit of availing free chequebook, passbook and RuPay ATM or debit card.
  • Interest: The zero bank accounts pay interest on the balance in the account as per the prevailing interest rates as offered by banks.
  • Overdraft Feature: Traditionally, the overdraft feature was reserved for only current accounts. However, with the advent of zero balance bank accounts, the feature is available for these accounts as well. The banks will allow the account holder to initiate transactions by making using of the overdraft feature after six months of satisfactory banking history with the account.

Some extra guidelines for zero balance accounts and its maintenance

  • The credit in the account should not exceed more than one lakh in a year.
  • The deposited amount in the account should not exceed Rs. 50,000 at any given point in
  • The account holder should maintain the account as per the rules and regulations as prescribed by the bank.

That said, the benefits of a zero-balance account are multi-faceted. The most significant advantage of the account is for salaried personnel or for those who want to build up their savings. Additionally, the benefits of the zero balance also include the use of ATM cards all over the world without any fees!


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