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Karnataka Bank Zero Balance Savings Account

The basic objective of zero balance account or Basic Savings Bank Deposit Account (BSBDA) is to spread financial inclusion to make savings account accessible to a vast section of the Indian population. Regular Savings Accounts have minimum average balance and other charges which makes it tougher for people to open a savings account. Sugama BSBD Account or Karnataka Bank’s zero balance account aims to make it possible for every individual to have a bank account. Sugama Account is a ‘no-frills’ account’ with no minimum balance.  

Features of Zero Balance Account of Karnataka Bank

karnataka bank zero balance account
Source: Karnataka Bank

Initial Deposit & Minimum Balance

As it is a basic savings zero balance account, customers don’t have to keep any minimum average balance. It also does not have any initial requirement.

ATM/Debit Card

Customers get a free Debit card that can be used to withdraw cash from ATM and shop at online or offline merchants. As it is ‘no frills account’, individuals don’t have to pay any maintenance charges on their debit card.


Passbooks help to record the various transactions taking place in the account. It is available for all the customers. Unlike an online passbook, passbooks need to be updated regularly. 

Nomination facility

Customers of the Karnataka Bank Zero Balance Account can avail the nomination facility applicable to the customers of regular savings account. Assigning a nominee is important as it can help the bank to transfer the bank proceeds to the nominee after the death of the bank holder.

Cheque book facility

The bank offers cheque book facility to the account holders of Karnataka Bank zero balance account. This allows customers to send money to other people.

The interest rate on Karnataka Bank zero savings account 

Karnataka Bank offers an interest rate starting from 2.75% on their savings account. The interest rate is calculated on the end-of-the day daily balance.

Day-end Balance Rate of Interest(% per annum)
Upto & including ₹ 1 Lakh 2.75%
Above ₹ 1 lakh up to ₹ 10 Lakh 2.75%
Above ₹ 10 lakh up to ₹ 50 Lakh 2.75%
₹ 50 lakh up to ₹ 100 Lakh 3.50%
Above ₹ 100 lakh 4.50%
Karnataka Bank savings account interest rate

Read: How is interest rate on savings account calculated?


Customers can only withdraw cash four times in a month. If the cash withdrawals exceed four times in a month, Rs.20 will be charged.

Facilities not included   

Different types of savings account have different facilities. A higher minimum balance means more facilities. While the Karnataka Bank zero balance account has certain facilities, here are some of the facilities that are not provided in this account.

Multi Branch Banking is not available for customers. Multi Branch Banking facility allows the customer to access their savings bank account at all branches of the Bank.

Secondly, outstation cheques are not immediately credited to the beneficiary’s bank account.

Karnataka Bank zero balance account opening

Customers need to visit Karnataka Bank to open the zero balance savings account. Currently, there is no online account opening process of Karnataka Bank zero balance account. Individuals would need to submit their self-attested copy of identification proof, address proof and latest passport size photographs. They should keep their original documents for verification.


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