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Best Zero Balance Savings Account For Indian Citizens

Zero balance accounts do not require the customer to maintain a minimum amount in the account. The interest in such accounts is calculated based on the average balance in the account. Banks like IndusInd Bank, IDFC Bank, RBL Bank, Axis Bank, etc., provide such accounts. 

  • No ATM/debit card charges
  • Free net banking
  • Can substitute as salary account
  • No minimum balance required
  • Free passbook and cheque book
More
Savings Account
  • Instant money transfer
  • 24x7 ATM withdrawals
  • Attractive rate of interest

For customers in India that wish to open a savings account and do not want to go through the hassle of maintaining a minimum balance, they can opt for a zero balance savings account. As the name suggests, those opening or holding a zero-balance savings account do not have to maintain a minimum balance. For those who do not know, the minimum balance value does not mean that money has to lie idle in the account for the whole month to meet the requirement, as the minimum average balance is calculated on the average balance in the account at the end of the day of each month and divided by the total number of days in the month. That said, for customers that wish to open a zero-balance savings account, they can contact any of the below listed banks that offer the most suitable and beneficial zero-balance accounts in the country.

Update on debit card transactions due to the coronavirus pandemic

The Finance Minister announced an update on debit card transactions as part of the economic measures in response to the Covid-19 pandemic. These updates are as follows:

  • Debit card holders can now withdraw cash from ATMs of any bank anywhere in the country, without incurring any additional transaction charges, for the next 3 months.
  • Bank accounts will not charge any penalty for non-maintenance of the minimum balance requirement for the next 3 months.
  • There will be a reduction in bank charges for digital trade transactions.

Top Zero-Balance Savings Account for Indian Citizens

Mentioned below are some of the banks which provide zero balance savings accounts:

ICICI Zero Balance Account

Individuals who do not have an account with ICICI can open a zero balance savings account with the bank with minimum documentation. Some features and benefits of this account are:

  • Internet banking facility
  • Free cheque book
  • Free cash deposits
  • Charge of Rs.90 for cash withdrawals at other bank ATMs

Read more about ICICI Zero Balance Account

HDFC Zero Balance Account

HDFC Bank offers a basic savings bank account for individuals who do not have an account with the bank already. Mentioned below are some features of this account:

  • Free RuPay debit card or international debit card
  • Fund transfers through NEFT and RTGS
  • IVR based phone banking
  • Four free cash withdrawals at other bank ATMs

Read more about HDFC Zero Balance Account

SBI Zero Balance Account

State bank of India offers its customers a zero balance savings account which has no limit on cash deposits. Some significant features of the account are:

  • Basic KYC documents required
  • Free debit card
  • Four free cash withdrawals from other bank ATMs
  • Free cash withdrawals from SBI ATMs

Read more about SBI Zero Balance Account

Axis Zero Balance Account

Axis Bank also offers a zero balance savings account which can only be opened by first-time Axis Bank customers. Some features of this scheme are:

  • Free RuPay debit card
  • Cash deposit limit up to Rs.10,000
  • Four free transactions at other bank’s ATMs every month

Read more about Axis Bank Zero Balance Account

IndusInd Zero Balance Account

IndusInd Bank offers a basic small savings account which comes with no minimum balance requirement. Some features of this account are:

  • Indian citizens above 18 years of age are eligible
  • Free debit card, passbook, and cheque book
  • 5 free transactions every month
  • Free fund transfers through NEFT and RTGS

Read more about Indusind Zero Balance Account

IDFC Zero Balance Account

IDFC Bank offers a zero balance savings account called Pratham Savings account. Customers can easily apply for this account by uploading their Aadhaar card and PAN card on the bank’s page. Some important features of this account are:

  • Internet banking and mobile banking
  • Free cheque book and passbook
  • Free debit card

RBL Zero Balance Account:

RBL Bank offers a small savings account called Abacus Digital Savings Account. It can be opened online by providing the customer’s Aadhaar card and PAN card on the bank’s online portal. Some features of this account are:

  • Customers can invest in fixed deposits
  • Maximum of Rs.1 lakh can be deposited in this account
  • Customers have to submit signatures after a year to continue using the account

Standard Chartered Zero Balance Account

Standard Chartered provides a zero balance savings account that can be opened by all citizens of India. Some benefits that come with this offer are:

  • Free international debit card
  • Discounts on locker facility
  • Doorstep facilities

Kotak Mahindra Zero Balance Account(Kotak 811)

All Indian citizens above 18 years of age can open a Kotak Mahindra zero balance savings account. The Zero Balance Savings account -811 can be opened online in just 5 minutes. Here are some its notable features:

  • Customers can use mStore to shop online
  • Fund transfers through NEFT and RTGS
  • Free virtual debit cards
  • Scan and pay option

Read more about Kotak 811

Latest Interest Rate for Zero Balance Savings Account

Bank Name of zero-balance savings account Interest rate
IndusInd Bank Indus Small Savings Account 4% to 6%
IDFC Bank Pratham–savings account (BSBDA) 6% to 7%
RBL Bank Digital Savings Account 5% to 6.75%
Kotak Mahindra Bank 811 4% to 6%
Standard Chartered Bank Basic Banking Account 0.5% to 4.90%
HDFC Bank Basic Savings Bank Deposit Account 3.50% to 4%
Axis Bank Basic Savings Account 3.50% to 4%
ICICI Bank Basic Savings Account 3.50% to 4%
State Bank of India Basic Savings Bank Deposit Account 3% to 3.25%

Check out Top Bank Savings Account Interest Rates

Pradhan Mantri Jan Dhan Yojana(PMJDY) Zero-Balance Savings Account

Apart from the basic savings account or zero-balance savings account rolled out by banks across the country, customers can even open a zero-balance savings account under the Pradhan Mantri Jan-Dhan Yojana (P.M.J.D.Y) scheme. Initiated by the Modi-led Government in 2014, the scheme offers financial access to those across the country and for those who do not have any - especially in the rural areas. Customers do not need any KYC documents to open an account under this scheme, only their signature and fingerprint will suffice as eligibility for the scheme.

Features and Benefit of Pradhan Mantri Jan-Dhan Yojana (P.M.J.D.Y)

Some of the features and benefit of the Pradhan Mantri Jan-Dhan Yojana (P.M.J.D.Y) are listed below:

  • No minimum required balance.
  • Customers are eligible for accident insurance cover of Rs.1 lakh.
  • If customers have subscribed to Government schemes or subsidies, they can avail for the direct benefit transfer through this account.
  • After completion of 6 months of holding the account, customers can avail the overdraft facility.
  • Free RuPay debit card when opening the account.
  • No charges for a using an ATM debit card.
  • Free passbook and cheque book when opening the account.
  • Free net banking facilities.
  • Can be used as a salary account as well.
  • No cash deposit transaction fees.
  • Free NEFT and RTGS facilities.
  • Locker facilities available.

FAQs

  1. Is it possible to open a joint basic savings account?

    Yes, it is possible to open a joint basic savings account. For this, the second-party has to be related to the primary account holder and both have to be present when opening the account.

  2. What is the initial deposit that I have to make to the bank when opening a zero-balance savings account?

    Since the zero-balance savings account is a basic savings account, it has no monthly average balance requirement. An initial deposit in a savings account has to be made only if there is a minimum balance requirement, and as this has no minimum average balance requirement no initial deposit has to be made. In short, a zero-balance savings account can be opened for free.

  3. How can I access by zero-balance savings account to either check my balance, make a withdrawal and so on? Can I do this only at a bank?

    No, you can access your zero-balance savings account via the internet and phone banking facilities, at an ATM and at the bank if required.

  4. Is there a difference between the Pradhan Mantri Jan-Dhan Yojana (P.M.J.D.Y) zero-balance savings account and the one offered by bank?

    While the nature of the zero-balance savings account is the same, customers subscriber to the Pradhan Mantri Jan-Dhan Yojana (P.M.J.D.Y) are eligible to opt for Government subsidies and other such benefits offered by the Government of India.

  5. Is it possible to make a nomination for this zero-balance savings account?

    6. Yes, it is possible to make a nomination for a zero-balance savings account. But, based on a few conditions:

    • The nominee should share a relationship with the second party - either parent, spouse, sibling, etc.
    • In case of a minor, only a person legally bound to the minor can make a nomination for the account.
    • Applicants need to fill in the Banking Companies (Nomination) Rules 1985 form to make a nomination.
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News About Best Zero-Balance Savings Account For Indian Citizens

  • Three types of zero balance savings accounts that are available at India Post Payments Bank

    Regular savings account, basic savings bank deposit account, and digital savings account are the three types of zero balance savings accounts that are offered by Indian Post Payments Bank (IPPB). Customers need not maintain a minimum average balance in a zero-balance savings account. In all the three accounts, India Post Payments Bank provides a 4% interest rate. The bank has 3,250 access points and 650 branches.

    Indian Post Payments Bank regular savings account: The account can be opened by visiting any of IPPB’s access points or by applying for doorstep services. As per IPPB’s website, IMPS and free quarterly account statements are offered by this account.

    India Post Payments Bank basic savings account: Apart from a limit of four cash withdrawals in a month, all benefits and features are the same as a regular savings account. The main aim of this account is to provide banking services at a very minimal charge.

    India Post Payments Bank digital savings account: This account can be opened by downloading the bank’s mobile app that is available on Google’s Play Store. The Aadhaar and Permanent Account Number (PAN) card details of the applicant must be submitted in order to open a digital savings account.

    15 February 2019

  • Zero balance savings account at India Post Payments Bank

    The India Post Payments Bank (IPPB) is a state-owned payments bank. It offers three kinds of zero balance savings account, which are a basic savings bank deposit account, a regular savings account, and a digital savings account. These accounts do not have a minimum balance requirement that customers have to maintain. Interest is provided at the rate of 4% p.a. for all these three accounts. A basic savings bank deposit account allows limited cash withdrawals on a monthly basis, which is four in this case. It has all the other features of a regular savings account. Some of the facilities it offers are free quarterly statement, zero balance account opening, linkage to Post Office savings account, IMPS facility, etc. A regular savings account can be opened with a zero balance by visiting the bank’s access point or even by requesting the doorstep service. Some of the facilities offered are IMPS service, free quarterly account statement, etc. The digital savings account can be opened on the bank’s mobile app which is available on Google Android. Aadhaar card and PAN card details are required. There is no need for a monthly average balance and can be opened with zero balance. Other facilities offered are IMPS and free quarterly account statement.

    14 February 2019

  • Features of SBI’s Zero Balance Savings Account

    The Basic Savings Bank Deposit (BSBD) account of the State Bank of India (SBI) does not have a mandatory minimum average balance. This is to encourage the economically disadvantaged sections of society to start banking with savings accounts without worrying about penalties for not maintaining the minimum balance. There are other facilities offered along with these accounts, such as ATM cards, debit cards, and internet banking. The account is open to all irrespective of economic background. The account can be opened jointly or singly. It can be opened with anyone or survivor, former or survivor, and either or survivor. A debit-cum-ATM card that is RuPay is offered without any annual maintenance charges and totally free of cost. The receipt or credit of money through NEFT or RTGS is free of charge. The collection or deposit of cheques that are drawn by state and central governments is also free. For closure of accounts or inoperative accounts, there is no charge on activation. This account offers interest rates that are similar to regular savings accounts. For balance in the savings account that is up to Rs.1 crore, the interest rate is 3.5% p.a. For balance that is above Rs.1 crore, the interest is 4% p.a.

    25 January 2019

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