*Terms and conditions apply
Zero balance account is a savings account with no minimum average balance requirement. This means you don’t have to maintain a specific amount as a minimum average balance. There are no charges for non-maintenance of the minimum average amount.
There are four key types of zero balance accounts. Online zero balance accounts, zero balance accounts on certain conditions, Basic Savings Bank Deposit Account (BSBDA) and Small Savings account.
Online zero balance accounts are savings account that individuals can open instantly online by downloading the bank’s mobile banking app, video KYC or through the bank’s website. Individuals will need PAN and Aadhaar card to open these accounts. In this process, banks verify the account by the OTP that is sent to the customer’s registered mobile number in the Aadhaar database. The account opening process is online and customers get the account number and other bank details instantly on their email id and phone number. However, the account is valid for 12 months and customers need to complete the full KYC process by visiting the nearest bank branch or booking an appointment online. Kotak811, digisavings are few types of digital zero balance account.
Some banks waive off the maintenance charge on the minimum average balance under certain conditions such as booking a fixed deposit, recurring deposits, or by opting for a particular debit card. Customers can open these accounts online.
RBL Bank’s digital account, ICICI Bank’s Insta Save FD Account, and IndusInd Online Savings account are some accounts where banks have waived off the maintenance charges.
Basic Savings Bank Deposit Account (BSBDA) and Small Savings account are primarily meant for the financially weaker sections of the society who don’t have any savings bank account. The aim of these two types of bank account is to bring the unbanked sections of the society into the formal banking space. According to RBI guidelines, each bank should provide BSBDA and small account.
Online Zero Balance Account |
Online Zero Balance on conditions | BSBDA | Small account | |
Maximum limit at a given time | Rs.1 lakh (before full KYC) No maximum limit after full KYC |
No limit | No limit | Rs.50,000 |
KYC Document | PAN and Aadhaar Card | PAN and Aadhaar Card | One KYC document | No KYC document needed |
Maximum amount of withdrawal in a month | – | – | – | Rs.10,000 |
Validity | 12 months(Full KYC needs to be done to continue using the account) | 12 months(Full KYC needs to be done to continue using the account) | Lifetime | 12 months, KYC documents needs to be submitted within 24 months of account opening |
Account Opening process | Online | Online | Branch visit | Branch visit with an introducer |
Indian resident citizens above 18 years of age can open zero balance account. Depending on the zero balance bank account, the eligibility to open the bank account will differ.
In case of zero balance online account, customers who don’t have any existing relationship with the bank can open the digital savings account. E.g. customers with ICICI Bank’s salary account can’t open ICICI Insta Save FD account.
However, basic savings account is meant for individuals who don’t have any savings account with any bank. In case of any discrepancies, bank officials can close the account.
To open online savings zero balance account:
To open basic savings account
Any one document towards proof of identity and proof of address
To open a small account
Individuals who don’t have any KYC document can open small basic savings account. However, KYC documents should be submitted within 24 months after account opening.
Online by downloading app or website
Individuals can open zero balance account online by downloading the app or through the bank’s website. You need to fill up the online form with the required details and validate your Aadhaar by verifying the OTP sent to your Aadhaar registered mobile number. You will receive your account number and other details on your registered email id.
Through Video KYC
After RBI’s approval in January to verify KYC details over video, a few banks such as Kotak Mahindra Bank, IndusInd Bank, IDFC First Bank have introduced video KYC to on-board new customers. Kotak Bank has launched video KYC for new Kotak 811 zero balance customers. Video KYC is a start-to-end process where customers get a full-fledged savings account. So, after completing the process, customers don’t have to visit the bank branch to complete the full KYC process.
Visiting bank branch
Customers opening basic savings account can visit the nearest bank branch with the original documents, attested KYC documents, passport photographs and fill up the account opening form to open the bank account.
Online Zero Balance Savings Account
Basic Savings Bank Deposit Account
Basic Savings Bank Deposit Small Account
The Reserve Bank of India has mandated all banks to offer a basic savings account and small accounts to customers. Many banks have introduced zero balance bank accounts that can be opened online or through video KYC.
Kotak811 by Kotak Mahindra Bank
DigiSavings Account by Digibank
IDFC FIRST Bank Pratham – Savings Account
ICICI Bank Zero Balance Account
Besides the zero balance savings account launched under Pradhan Mantri Jan Dhan Yojana (PMJDY), ICICI Bank offers Insta Save FD account where the charge on minimum balance is waived off if you open a fixed deposit of Rs.10,000 for a minimum for 12 months.
Customers have the option to open Indus Online Savings Account in one of three ways. Indus Online Account – Premium Debit Card and Indus Online Account – Instant Funding are the two zero balance variants while Indus Privilege Online Account is a minimum balance account of Rs.10,000. The account opening process of all the three variants is same and customers can choose one during the online account opening journey.
In case of the Premium Debit Card option, customers get a Platinum Plus Debit Card that comes with a host of attractive features. The fee of the platinum debit card is Rs.1000 + taxes. For the Instant Funding variant, the account holder has to make an initial deposit of Rs.20,000. Customers can withdraw the money whenever they want.
Indian Bank Zero Balance Account
IB DIGI – Online SB Account is the digital savings account that customers can open online. The bank also offers basic savings account, zero balance account, to individuals who don’t have a savings account with any bank.
The State Bank of India or SBI offers a Basic Savings Bank Deposit Account (BSBDA) as a basic savings or zero balance account for residents of India. Customers have to submit the necessary KYC documents when applying to create a zero balance savings account with SBI.
Features of the zero balance account offered by SBI include:
Punjab National Bank (or PNB) offers the Basic Savings Bank Account, which is a zero balance savings account. An illiterate or a visually impaired person is also eligible to open this savings account with usual safeguards.
Besides this savings 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). As these are zero balance accounts, there is no requirement of an initial cash deposit.
It also provides a free ATM and Debit card facility.
Canara Bank Zero Balance Account
Canara Bank offers zero balance bank account known as the Canara Basic Savings Bank Deposit Account. It is eligible for customers who do not have an existing account with Canara Bank.
The Canara Bank zero balance account offers the following benefits:
HSBC Basic Savings Account
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:
Yes Bank offers a basic savings zero balance account to Indian citizens.
Features of the Yes Bank Zero Balance account include:
Standard Chartered – Basic Banking Account
Standard Chartered bank offers the Basic Banking account to all Indian residents.
Features of the Standard Chartered Zero balance account include:
Union Bank of India Zero Balance Account
Union Bank of India offers basic savings account and digital savings account to their customers. Individuals can download Union Selfie & M-passbook or visit the bank’s website to open the online savings account.
Karnataka Bank Zero Balance Account
Sugama Account is Karnataka’s Bank basic savings zero balance account.
Small Finance banks can do everything like commercial banks. The focus area for small finance banks are small business units, small and marginal farmers, micro and small industries. Most of the small finance banks operate in a specific geography.
Equitas Bank Zero Balance Savings Account
SelfeSavings is a zero balance digital bank account that can be opened through video KYC.
Ujjivan Small Finance Bank Digital Account
Here are some key features of the digital savings account of Ujjivan Small Finance Bank:
Fincare Small Finance Bank Zero Balance Account
Features of Fincare Small Finance Bank Zero Balance Account or 101 First Savings Account:
AU Abhi Savings Account is the zero balance digital account of AU Small Finance Bank.
Features:
The primary aim of payment banks is to provide banking facilities such as a savings account and remittances to the unbanked sections of the society. These banks can accept deposits up to Rs. 1 lakh per customer and cannot issue loans and credit cards.
India Post Payments Bank Digital Savings Account
The IPPB digital savings account is an online savings account launched by India Post Payments Bank.
Features:
Paytm Payments Bank Savings Account
Paytm Payments Bank offers a digital savings Account with no minimum balance requirement.
Features:
Fino Payment Bank’s Shubh Savings Account
Free RuPay Platinum/Classic Debit Card is available with offers and benefits
Banks such as Kotak Mahindra Bank, Axis Bank, Digibank are some of the banks that offer zero balance to its customers.
Yes, you can open a zero balance account online. Kotak 811, Axis ASAP, digisavings by Digibank are some of the zero balance accounts that you can open online.
Many top banks such as Kotak Mahindra Bank, Axis Bank and Digibank offers zero balance accounts to its customers.
Some of the reasons why you should open a zero balance account are as follows:
Online zero balance savings account is a type of savings account offered by various banks. If you are looking for a savings account without any minimum average balance, zero balance account is a good option.
You can open these accounts online instantly. As these accounts are opened online, you have to complete the KYC procedure within 12 months after opening the account.
After the full KYC procedure is completed, restrictions on deposits and withdrawals are lifted.
However, most of these accounts are new-to-bank customers.
Here are some of the important things that you should keep in mind before opening 811 Account:
You can open a zero balance account, if you have a PAN card, above 18 years and you are Indian citizen.
Kotak 811, Axis ASAP and digisavings are some of the main zero balance savings account.
Typically, zero balance accounts that can be opened online such as Kotak 811, Axis ASAP are meant for customers who don’t have any existing relationship with the bank. Hence, you may not be able to convert your savings account into zero balance account. Moreover, you can’t open a new zero balance account with your bank.
Each bank has a different policy on the minimum balance required to open a savings account. Whereas, you can also choose to open a zero balance savings account in any of the banks that provide such a service.
Most zero balance accounts such as basic savings account and online zero balance accounts don’t have any minimum initial deposit. However, there are a few exceptions. Axis ASAP, the zero balance account of Axis Bank has a minimum initial deposit of Rs.10,000.
You can check your balance and other banking transactions through internet banking, mobile banking, Whatsapp banking etc. You can make cash withdrawal through the bank’s ATM card.
The basic savings account is a part of financial inclusion program that banks have introduced under Pradhan Mantri Jan-Dhan Yojana (P.M.J.D.Y). Customers can opt to receive government subsidies and other government benefits on this account.
Online savings zero balance accounts are digital savings account offered by various banks that customers can open online by visiting the bank’s webpage or by downloading the mobile banking app.
Yes, you can. While opening the bank account online, you can add your nominee details. Adding nominee details in your bank details is a good practice as after the death of the account holder, the funds are transferred to the nominee without any issue
Yes, you can open a joint zero balance account. However, please check with your bank for information as different banks may have different rules. Kotak 811 customers can open a joint account after they have completed their full KYC process.
Opening a zero balance account online is a good idea. Even if you have a savings account, you can open an online savings account as a secondary account and use it to park your emergency fund or save for your splurges.