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Quintessential guide to a 0 Balance Savings Account

Who likes to pay late fees or penalties? The answer is: no one. However, 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 when the monthly balance falls short of the limit specified by the bank, banks introduced zero balance savings accounts. 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 0 Balance Savings 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.
  • Depending on the type of bank account, you can use zero-balance bank account’s ATM or debit card 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 to open 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

If you want to open an online zero balance savings account, you will need PAN and Aadhaar card.

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 0 balance account if you already have a savings account in the same bank.

Who can have a zero-balance savings account?

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

Other than this, the following entities cannot apply to open a zero balance account with any bank:

  • A member of a HUF
  • An NRI


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: You can receive government benefits from different schemes in your zero balance account. Your account needs to be linked to Aadhaar to receive government benefits.
  • 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. Click here to know how banks calculate interest on your savings account.
  • 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 start transactions by making using of the overdraft feature after six months of satisfactory banking history with the account.


Zero balance savings accounts are multi-faceted. Students, homemaker, salaried personnel and everyone can take advantage of 0 balance savings account. 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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