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Zero Balance Savings Account

Why should you be penalized for taking something that belongs to you?

Years ago, banks use to charge a penalty on non-maintenance of minimum balance required in your bank account. While some banks still require their customers to maintain a certain amount of minimum balance, many banks now provide their customers with zero balance bank accounts wherein you don’t have to maintain a minimum balance.

With zero balance bank accounts, you are in charge of your money. You can withdraw your money as per your needs, without the added financial pressure imposed by the penalties levied by banks!

Bank
Interest Rate
Minimum Balance
Features
Apply
Bank
Kotak 811
Kotak 811
Interest Rate
6% p.a.
(senior citizens can earn up to 6.5% p.a.)(Open Kotak 811 and Book an FD to earn up to 7.25% interest)
Minimum Balance
Nil
Features
Show Details
Bank
Basic Savings account
Basic Savings account
Interest Rate
6.5% p.a.
(Balance of Rs. 1Cr & above)
6% p.a.
(Balance of 1 lac to less than 1Cr.)
Minimum Balance
Nil
Features
Show Details
Bank
Axis ASAP
Axis ASAP
Interest Rate
4% p.a.
(Balance above Rs. 50 lac)
3.5% p.a.
(Balance of below Rs. 50 lac)
Minimum Balance
Nil
Features
Show Details
Bank
Abacus Digital Savings Account
Abacus Digital Savings Account
Interest Rate
6.75% p.a.
(Rs. 1 Cr to Rs. 5 Cr.)
6.5% p.a.
(Rs. 10 lac to 1 Cr)
6.% p.a.
((Rs.1 lac to Rs.10 lac)
5.5% p.a.
(up to Rs.1 lac)
Minimum Balance
Nil
Features
Show Details
Bank
ICICI Bank
ICICI Bank
Interest Rate
4% p.a.
Minimum Balance
Nil
Features
Show Details
Bank
SBI YONO
SBI YONO
Interest Rate
4%
(balance over 1 crore)
3.5%
(balance up to 1 crore)
Minimum Balance
Nil
Features
Show Details
Bank
Pratham Savings Account
Pratham Savings Account
Interest Rate
4%
(Daily end of day balances, paid quarterly)
Minimum Balance
Nil
Features
Show Details
Interest Rate
6% p.a.
(senior citizens can earn up to 6.5% p.a.)(Open Kotak 811 and Book an FD to earn up to 7.25% interest)
Minimum Balance
Nil
Show Details
Features
  • Avail the benefits of the banking solutions with a single touch
  • Offers a virtual debit card for the ease of online transactions
  • Ideal for shopping, groceries, cab payments, and various others
  • Earn 7.25% interest on fixed deposits. To know more click bit.ly/2KRtaSr
Interest Rate
6.5% p.a.
(Balance of Rs. 1Cr & above)
6% p.a.
(Balance of 1 lac to less than 1Cr.)
Minimum Balance
Nil
Show Details
Features
  • Get the account number of your choice
  • Free NEFT & RTGS facilities
  • 24/7 customer care support
  • Unlimited number of transactions at any ATM in India
Interest Rate
4% p.a.
(Balance above Rs. 50 lac)
3.5% p.a.
(Balance of below Rs. 50 lac)
Minimum Balance
Nil
Show Details
Features
  • Get the zero balance savings account number instantly
  • A free virtual debit card for online transactions
  • Transfer funds, get account statements, pay bills, and so more –free of charge
Interest Rate
6.75% p.a.
(Rs. 1 Cr to Rs. 5 Cr.)
6.5% p.a.
(Rs. 10 lac to 1 Cr)
6.% p.a.
((Rs.1 lac to Rs.10 lac)
5.5% p.a.
(up to Rs.1 lac)
Minimum Balance
Nil
Show Details
Features
  • Upload the Aadhar Card & PAN card copies online to open account Can be opened instantly online with minimum documentation
  • Account holders can also invest in the respective fixed deposits
Interest Rate
4% p.a.
Minimum Balance
Nil
Show Details
Features
  • User-friendly Internet and Mobile Banking
  • 24 X 7 banking with 100+ Touch Banking branches
  • Smart Shopper Silver Debit card with exciting offers & Visa Privileges
Interest Rate
4%
(balance over 1 crore)
3.5%
(balance up to 1 crore)
Minimum Balance
Nil
Show Details
Features
  • Paperless account opening
  • Digital Savings Account – Single branch visit required
  • Instant Savings Account – Instant account activation
Interest Rate
4%
(Daily end of day balances, paid quarterly)
Minimum Balance
Nil
Show Details
Features
  • Open an account only with the help of your Aadhar Card Can apply for this account at the micro ATM of IDFC Bank
  • Account offers Internet & mobile banking, free & unlimited ATM services, and various others.

 

Primarily, a savings account in India is among the primary mode of securely storing your money in the safe premises of an established bank. In addition to security, a savings account offers its holders the flexibility of depositing and withdrawing cash according to their needs along with easy access to other banking facilities such as fixed and recurring deposits, bank loans, and demand draft services.

Why is having a savings account important for customers? It is important as it promotes the idea of “personal savings” for future security along with limits the unnecessary spending of cash.

What is a Zero Balance Saving account?

Among the various types of savings accounts offered by banks, a zero balance saving account (also known as a basic savings account) is a bank account where account holders do not have to maintain a minimum balance in their account. This differs from a regular savings bank account, where banks insist that account holders should maintain a minimum average balance, failing which the bank can charge a penalty on the account holder.

A zero balance account is ideal for customers, who are new to banking and do not want the hassle of maintaining a minimum balance in their account. Zero balance accounts are designed to encourage non-banking individuals to start saving their hard-earned money in bank accounts, while having easy cash withdrawal facilities at the same time.

Features of a Zero Balance Bank Account

In addition to not maintaining a minimum balance, a zero balance bank account in any bank usually provides the following additional benefits to the account holders:

  • Free ATM debit card facility for ATM cash withdrawals and cashless shopping
  • Free account passbook and cheque book facility
  • Internet banking facility (if provided by the bank)
  • Additional use of the account as a salary account for salaried employees
  • No bank fees for cash deposit
  • Bank locker facilities
  • Regular interest payments on the available balance
  • No initial cash deposit required when opening the account
  • Availability of joint saving account on zero balance account, provided the second party is related to the primary account holder

Eligibility criteria

To be eligible to open a zero balance saving account in any Indian bank, the individual must fulfil the following eligibility criteria:

  • A resident of India (for both sole and joint accounts) above the age of 18
  • Member of the Hindu undivided family
  • Must not be having any other savings account with the bank.
  • For a self-operated minor account, the minor must be above the age of 10.

Documentation for a Zero Balance Savings account

As a customer, you must submit the complete set of Know Your Customer (or KYC) documents (as specified by the bank) at the time of account opening.

These KYC documents comprise of:

  • Photo ID Proof (as specified as an acceptable document by the bank)
  • Address Proof (as specified as an acceptable document by the bank)

If you do not posses these KYC documents, you must submit a self-attested photograph along with your signature or thumbprint.

How to open a Zero Balance Savings account

To open a zero or 0 balance account, customers can walk into any branch of the bank that offers basic saving account facility along with their supporting KYC documents and fill and submit the necessary application form. Additionally, a zero balance account does not require any initial cash deposit, which is required when opening any other type of savings bank account.

Customers with access to Internet, can avail of the online bank account opening with zero balance facility using the bank’s website or mobile banking app.

As an alternative to the basic savings account provided by banks, customers can go for a zero balance account opening under the Pradhan Mantri Jan Dhan Yojana or PMJDY scheme initiative by the Indian government under the leadership of Prime Minister Narendra Modi in the year 2014. Under this scheme, individuals from weaker sections of the society can open a zero balance account without submitting any KYC documents and can also avail of an accident insurance cover of 1 lakh.

Best Zero Balance Savings Accounts in India

This section discusses 24 of the best banks for opening a zero balance savings account in India.

State Bank of India

State Bank of India or SBI offers the Basic Savings Bank Deposit Account (or BSBDA) as a basic savings or zero balance account for Indian residents. To open the zero balance account, customers must submit the necessary KYC documents at the time of application.

Other features of this zero balance account offered by SBi include:

  • Free RuPay debit card facility
  • No limit on cash deposits into the account
  • Up to 4 free cash withdrawals at non-SBI ATMs each month
  • Interest rate of 3.5% on a balance of less than 1 crore and 4% for an average balance of over 1 crore.

ICICI Bank

ICICI Bank offers the ICICI Zero Balance Account, also known as the Basic Savings Bank Deposit Account. Banking customers, who do not have an existing account in ICICI Bank are eligible for this account.

The ICICI Bank Zero Balance account has the following additional features:

  • Free debit card and cheque book facility with 15 leaves (free for a year)
  • Unlimited cash deposits into the account
  • Free Internet and mobile banking facility for online customers
  • Transaction fee of 90/- charged for cash withdrawals at non-ICICI bank ATMs
  • Half-yearly interest payment at the rate of 3.5% (for account balance of less than 50 lakhs) and 4% (for account balance of over 50 lakhs)

HDFC Bank

Among the leading banks in India, HDFC Bank offers the HDFC Zero Balance account for eligible customers, who do not have any other existing account in HDFC Bank.

Additional features of the HDFC Zero balance account include:

  • Free RuPay debit card along with the option to upgrade it to an international debit card
  • Free fund transfer using NEFT and RTGS facilities
  • IVR-based phone banking facilities for all account holders
  • Up to 4 free cash withdrawals at non-HDFC bank ATMs each month
  • Interest payment at the rate of 3.5% (for an average account balance of less than 50 lakhs) and 4% (for an average account balance of over 50 lakhs)

Kotak Mahindra Bank

Kotak Mahindra Bank offers its Kotak 0 Balance Account through its 811 digital savings account that can be opened in under 5 minutes. The Kotak Zero balance account is available for any Indian resident above the age of 18.

Other features of the Kotak 811 Zero Balance account include:

  • Virtual debit card for easier transactions and online shopping
  • Scan and pay facility using the Kotak 811 mobile app
  • Free online fund transfer using NEFT and IMPS for a maximum amount of 1 lakh
  • Maximum account balance of 1 lakh
  • Interest payment on account balance at the rate of:
    • 5% per annum for balance of less than 1 lakh
    • 6% per annum for balance between 1 lakh to 1 crore
    • 5% per annum for balance of more than 1 crore

Axis Bank

The Axis Bank Zero Balance account is offered to all Indian residents who do not have any existing account with Axis Bank. The Axis Zero balance account can be opened instantly by providing details of mobile phone number, Aadhar, and PAN card details.

Features of the Axis bank 0 balance account include:

  • Free RuPay virtual debit card for online shopping
  • Flexible FD facility with automatic sweep for account balance of more than 1000/-
  • Passbook facility
  • Maximum cash deposit of 10,000/- only
  • Up to 4 free ATM transactions monthly on non-Axis bank ATMs.
  • Interest payment on account balance at the rate of:
    • 5% annually on balance of less than 50 lakhs
    • 4% annually on balance between 50 lakhs to 100 crores
    • 6% annually on balance of more than 100 crores

Federal Bank

Federal Bank offers its zero balance account to Indian residents with its pioneering Selfie account, which is a mobile-based banking app that is available on both Android and Apple iOS phones. Online customers can open this account by submitting their PAN and Aadhar card details.

Federal Bank offers attractive interest rates annually on their zero balance account:

  • 5% annually on balance of less than 50 lakhs
  • 4% annually on balance between 50 lakhs to 1 crore
  • 3% annually on balance between 10 to 25 crores
  • 51 annually on balance of over 25 crores

Canara Bank

Canara bank also offers zero balance bank account known as the Canara Basic Savings Bank Deposit Account. Customers, who do not have any existing account with Canara Bank, are eligible to open this account.

The Canara Bank zero balance account offers the following benefits:

  • Free ATM and debit card facility
  • Unlimited number of cash deposits in a month
  • A maximum of 4 withdrawals each month including ATM cash withdrawals
  • Internet and mobile banking facility

Punjab National Bank

Punjab National Bank (or PNB) offers the Basic Savings Bank Account, which is a zero balance account with free ATM and Debit card facility. Apart from this account, PNB offers a variety of zero balance accounts including the PNB Vidyarthi SF account (for students), the PNB Pension Savings account (for pensioners), and the PNB Junior SF account (for minors).

Each of these zero balance accounts require no initial cash deposit and offer an interest rate of 3.5% per annum on the average balance.

IndusInd Bank

IndusInd bank offers Indian residents its basic small savings account with zero balance facility. All Indian citizens above the age of 18 are eligible to open this account.

Features of the IndusInd zero balance account include:

  • Free debit card along with cheque book and passbook facility
  • Free fund transfer using NEFT and RTGS
  • Up to 5 free transactions each month on non-IndusInd bank ATMs
  • Foreign remittances are not allowed for this account.
  • Interest payments on account balance at the following annual rates:
    • 4% per annum for deposits up to 10 lakhs
    • 5% per annum for deposits between 10 lakhs and 1 crore
    • 5% per annum for deposits between 1 to 10 crores
    • 6% per annum for deposits above 10 crores

RBL Bank

Formerly known as Ratnakar Bank, RBL Bank offers the RBL Bank Zero Balance account facility, also known as the Abacus Digital Savings account. Eligible customers can complete their RBL Bank Zero Balance account opening by submitting their Aadhar and PAN card details.

The RBL Bank Zero Balance account offers the following features:

  • Maximum deposit of 1 lakh
  • Internet banking facility
  • Annual interest payment on account balance at the following rates:
    • 5% for an account balance of less than 1 lakh
    • 6% for an account balance between 1 to 10 lakhs
    • 5% for an account balance of more than 10 lakhs but less than 5 crores

Yes Bank

Among the recently-established banks in India, Yes bank also offers a zero balance banking account facility to resident Indians.

Some features of the Yes Bank zero balance account include:

  • Net banking facility for free fund transfer and online bill payment
  • Free issuing of demand drafts
  • Tax-free interest payments up to a maximum of 10,000/-

Lakshmi Vilas Bank

To promote financial inclusion, Lakshmi Vilas bank offers the Basic Savings Bank Deposit (or BSBD), which is a zero balance account for Indian residents.

The Lakshmi Vilas Zero Balance account offers the following features:

  • Cash deposit and withdrawal facility at both bank branches and ATMs
  • No limit on the number of cash deposits into the account in a month
  • Maximum number of 4 transactions allowed in a month, including ATM cash withdrawals
  • Free RuPay ATM card

Bandhan Bank

The Bandhan bank BSBDA account is a zero balance banking account designed for the convenience of the common man in India.

Along with no minimum balance requirement, the zero balance account from Bandhan Bank has the following features:

  • No limit on maximum balance
  • Free passbook and ATM debit card facility
  • Free fund transfer using NEFT
  • Interest rates as applied to the regular savings account from Bandhan Bank

Dena bank

The Basic Savings Bank Deposit Account (or BSBDA) is a zero balance account facility offered by Dena Bank to all Indian residents.

Some of the features offered by this zero balance account include:

  • Free cash deposit and withdrawal facility at all Dena bank branches and ATMs
  • Money transfer using electronic payment channels
  • No monthly limit on the number of cash deposits to the account
  • Maximum of 4 cash withdrawals in a month, including ATM withdrawals
  • Free ATM and Debit card facility

Standard Chartered Bank

Standard Chartered bank offers the Aasaan zero balance digital account to all Indian residents.

Features of the Standard Chartered Zero balance account include:

  • Free debit card and multicity cheque book facility
  • Free locker facility and doorstep banking
  • Free cash deposits and withdrawals
  • Interest payments at the rate of 3.5% on an account balance of up to 50 lakhs and 4% on an account balance of above 50 lakhs.

HSBC Bank

HSBC Bank offers the HSBC Basic Savings Bank Deposit Account (BSBDA) for zero balance banking to all Indian residents.

Features of the HSBC BSBDA account include:

  • Debit card facility with a daily cash withdrawal limit of 25,000/- and a purchase limit of 10,000/-
  • Free Internet and phone banking facility
  • Cheque book facility
  • Unlimited cash deposits in the account
  • Maximum of 4 withdrawals from the account in a month, which includes ATM cash withdrawals, electronic transfers using NEFT and RTGS, cheque payments, demand drafts, and pay orders.
  • Monthly bank account statement

Development Bank of Singapore (DBS)

Development Bank of Singapore (or DBS) also offers zero balance account facility through the digiSavings account that can be opened using smartphone banking. Smartphone users can open this account online by submitting their Aadhar card details.

Features of the digiSavings zero balance account include:

  • Free VISA debit card facility
  • Free and unlimited cash withdrawals from any bank ATM
  • Free online transfer facility using NEFT and IMPS
  • Annual interest paid on account balance at the following rates:
    • 6% for a balance of less than 1 lakh
    • 7% for a balance of between 1 to 2 lakhs
    • 5% for a balance of between 2 to 5 lakhs
    • 4% for a balance of more than 5 lakhs

IDBI Bank

IDBI Bank offers the IDBI Bank Sabka Basic Savings Account offering the advantage of zero balance banking to its customers.

The IDBI Bank Zero balance account offers the following benefits:

  • Free international debit and ATM card facility
  • Free cheque book facility
  • Multiple means of assessing account through phone banking, SMS banking, and Internet banking
  • Free SMS and E-mail alerts on any bank transactions
  • Free monthly account statements available through E-mail
  • No bank charges for cash deposits at IDBI bank branches

IDFC Bank

IDFC Bank offers zero balance banking to its customers through the Pratham Zero Balance Saving Account. Resident Indians can open their IDFC Bank Zero Balance account by submitting their Aadhar card details at any IDFC bank branch or ATM.

Features of the IDFC Zero Balance Account include:

  • Free and unlimited transactions at IDFC ATMs
  • Internet and Mobile banking facility
  • Cheque book facility on request
  • An interest rate of 4% per annum paid on the average account balance.

Bank of Baroda

Bank of Baroda (or BoB) offers the Basic Savings account with zero balance facility. Only Indian residents, who do not have an existing account with BoB, are eligible to apply for this account.

BoB Basic Savings account has the following features:

  • Debit card and Internet banking facility
  • No limit on cash deposits into the account
  • Cheque book facility with 50 cheque leaves in a year
  • Maximum number of 4 withdrawals from the account in a month
  • Interest rate same as applicable to regular BoB savings account

Bank of India

Bank of India (or BOI) offers the BOI Basic Savings Account to Indian residents with free debit and ATM card facility. Other BOI accounts offering zero balance facility are the SB Account for Pensioners, Salary Plus Account Scheme (for salaried government and private employees), and the BOI Saral Salary Account Scheme.

Equitas Bank

Equitas Bank offers the Basic and Small Savings Account with zero balance requirement.

Features of the Equitas Bank zero balance account include:

  • Free RuPay debit card facility
  • Free cash withdrawals from bank branches and ATMs
  • Internet and mobile banking facility
  • Free fund transfer facility using NEFT
  • Interest rate of 6% (on account balance of up to 10 lakhs) and 6.5% (on account balance between 10 lakhs and 5 crores)

Citibank

Citibank offers Indian residents its Basic Savings Bank Deposit Account facility with zero balance banking facility.

The Citibank Zero Balance account offers the following features:

  • Free ATM and Debit card facility with a daily transaction limit of 10,000/-
  • Daily transaction limit of 10,000/- including online payments
  • Free cheque book facility
  • Unlimited credits to the account
  • 24×7 access to Citibank online and phone banking service
  • Maximum of 4 free account monthly debits including ATM and branch withdrawals, electronic fund transfer, and cheque payments.

Additionally, customers can open the PMJDY account in Citibank, which offers a personal accident cover of 1 lakh.

Karur Vysya bank

Karur Vysya bank also offers the KVB Basic Savings Bank Account (also known as the Kalpatharu account) to provide financial inclusion to weaker sections of the society.

Features and benefits provided by the KVB Zero Balance account include:

  • Free RuPay debit card facility
  • No penalty for non-maintenance of minimum balance
  • Unlimited number of transactions allowed in this account
  • No cheque book facility and no multi-city status for the account

 

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