5 Smart Things To Know About Zero Balance Savings Account

One feature of a regular savings account that kept people away from opening accounts is the minimum balance requirement. Depending on the bank, the minimum account balance requirement changes as does the penalty for not meeting this requirement. If the minimum balance is not met, banks charge some form of penalty or a charge which is debited from the bank account.

If you want to open zero balance account, then here are some smart things to know about it to help you make your decision:

Zero penalties on balance:

Unlike regular savings accounts, a zero balance savings account has no penalty in case there is a low balance or zero balance maintained in the account. This can greatly help customers who have small savings that don’t meet the minimum balance requirements. However, some types of accounts may also restrict the maximum account balance  in this account.

Interest at prevailing rates:

A zero balance savings account earns interest at the same rate as a regular savings account in the bank. Since interest is paid at regular rates, the zero balance savings account becomes a good option for people with small savings to earn interest income.

Types of zero balance savings accounts:

Depending on the bank, there are different types of zero balance saving account:

• Basic Savings Bank Deposit (BSBD)
• Basic Savings Bank Deposit – Small account
• Jan Dhan Account
• Salary account
• Pension account
• Children account
  
  

Each of these accounts has different features with the common feature of no minimum balance restrictions. Before you open zero balance account, you need to check which account will best suit your requirements and then choose the bank. The online saving account opening procedure is extremely simple and convenient. You will need to fill a form and submit some details to the bank and a customer care executive will respond with the future process.

Digital banking access:

A zero balance savings account provides all other facilities to the customer such as free internet and mobile banking. Along with this, the account provides users with an ATM cum debit card. This card can be swiped at merchants and also used for e-commerce transactions. You can use netbanking apps and mobile banking just like any other savings account and get access to all of the facilities available there such as fund transfers, balance checking, opening fixed deposits and recurring deposits etc.

Other banking facilities:

A zero balance savings account provides other facilities such as a free passbook facility, free bill payment facility, email statements, locker facility on payment of additional locker charges, cash and cheque deposit at branches etc. This means you can use this account just like a regular savings account.

 If you’re thinking of online bank account opening with zero balance, you can approach the bank either through their website or by visiting their bank branch. The process to open zero balance account is very simple. You will need to submit your KYC documents along with an application form. Some accounts may only require a signature or thumbprint along with KYC documentation. This makes online saving account opening really simple and convenient.