Zero Balance savings account is a kind of account where the account holder is not required to maintain a minimum balance. It also provides additional benefits like free debit card, free cheque book, a specific number of free transactions per month, and more.
Zero Balance Savings Account Opened Under Pradhan Mantri Jan Dhan Yojana (PMJDY)
An ambitious mission from the Ministry of Finance, Govt. of India, this program is a national mission for financial inclusion by means of providing easy access to financial services such as Savings Account & Deposit Accounts, Remittance, Credit, Insurance, Pension to all citizens in an affordable manner.Benefits of Savings Account Opened Under PMJDY
- No need to maintain a minimum balance.
- Interest on deposits as per prevailing bank rates.
- Accidental insurance cover of Rs.1.00 lac.
- Direct benefit transfer from Government schemes are credited to this account.
- Overdraft facility is offered after 6 months of satisfactory operation.
- RuPay Debit Cards and free Accident insurance cover.
- The total credit in the account should not exceed Rs.1 lac in a given financial year.
- The debit balance should not exceed Rs.50,000 at any point of time.
- The account holder should submit all documents as per KYC guidelines from RBI.
- Other terms that are specific to the bank where the account is being held.
Features of Zero Balance Account
A zero balance savings account refers to a scheme under which the account holder does not have to maintain a minimum balance in his/her savings account. Such types of savings accounts are usually provided under the Pradhan Mantri Jan Dhan Yojana, or basic savings account. Some banks also offer zero balance benefit to salary account holders.
|Interest Rate||3.50% to 4%|
|Mobile and Net banking||Yes|
|E-mail account statement||Yes|
|Monthly Average Balance||Nil|
*May vary depending on the bank
Eligibility to Open a Zero Balance Account
The eligibility criteria for opening a zero balance account may differ based on the bank. However, mentioned below are some common eligibility criteria that most banks follow:
- The applicant must be a resident of India
- Hindu Undivided Families are also eligible
- The applicant must not hold any other savings account with the bank
KYC Documents for Opening Zero Balance Account
Some important documents required for opening a zero balance account are:Documents required for individuals:
- ID proof
- Address proof
- Passport size photo
- Copy of PAN card or Form 60 of HUF
- ID proof of Karta
- Address of Karta
- Prescribed Joint Hindu Family letter signed by all adult members
The list of KYC documents accepted by most banks for address and ID proof are mentioned below:
- PAN (only for ID)
- Driving license
- Voters ID card
- Aadhaar card or number
- Letter or card issued by UIDAI
- Job card under NREGA signed by an officer of state government
Opening Zero Balance Account Online
Before opening a zero balance account with any bank, it is advisable to compare the additional benefits like free Debit Cards, withdrawal limit, etc. first. Doing so will ensure that you find the best plan that meets your requirements.
Most banks have specific plans under which they allow customers to open a zero balance account online. To open a zero balance savings account online, follow the steps mentioned below:
- Select the bank you want to open a zero balance savings account with
- Make sure that you have compared different schemes to select the bank.
- Go to the specific plan page or click on the apply online option
- The process may differ based on the banks, however, it is important that you go through the eligibility criteria.
- Most banks do not allow users to open a zero balance account if they already have an account with the bank.
- Enter the required information like name, contact details, address, etc., and verify the same with documents like PAN, Aadhaar card, or any other document required by the bank.
- After providing the relevant details, you can activate the account by visiting the bank’s branch or by following the bank -pecific instructions.
List of Banks which Provide Zero Balance Account
|Bank Name||Name of Zero Balance Savings Account||Features|
|Union Bank of India||Union Basic Savings Bank Deposit Account||
|Punjab National Bank||Basic Savings Bank Deposit Account||
|Federal Bank||Selfie Zero Balance Account||
|Federal Bank||Basic Savings Bank Deposit Account (BSBDA)||
|DBS||Digibank Instant Savings Account||
|Yes Bank||Basic Savings Bank Deposit Account||
|Bank of India||SB Account For Pensioners||
Zero Balance Savings Account FAQ
- How is a zero balance savings account different from other savings account?
- What is BSBDA? Is a zero-balance account similar to BSBDA?
- What documents do I have to submit for opening a zero balance savings account?
- What other benefits do I get with a zero balance savings account?
- What will happen to my savings account if I don’t use it for a long time?
Generally, banks have the concept of minimum Monthly Average Balance (MAB) for savings account. When the account balance does not meet the MAB requirements, non-maintenance charges will be levied. For a zero balance savings account, there is no MAB requirement.
Following the RBI mandate, Basic Savings Bank Deposit Account or BSBDA is now offered by all banks. A BSBDA has no minimum balance requirement and the customers are offered debit card. BSBDA is zero-balance account but banks may offer the zero-balance flexibility to other types of savings account variants also.
You will have to submit the basic KYC documents - Identity proof and address proof.
With a zero-balance savings account, most of the banks offer a free ATM-cum-debit card, passbook and cheque book. Also, facilities like internet and mobile banking are offered by several banks.
Your savings account will become dormant if there are no customer-initiated transactions for a specified period of time. Transactions through ATM, internet and phone banking will not be allowed by the bank if your account becomes dormant and you must activate it again to continue enjoying the benefits.
- ATM Withdrawal Limit
- SBI ATM Card
- ATM Card
- International Debit Card
- PNB ATM Card
- Rupay Debit Card
- HDFC Bank Debit Card
- Bank of India Debit Card Apply Online
- Best Prepaid Travel Card India
- Union Bank ATM Limit
- Andhra Bank Platinum Debit card
- Coral Debit Card Benefits
- HDFC Platinum Debit Card Offers
- EMI on Debit Card
- BOB Debit Card
GST of 18% is applicable on all banking products and services from July 1, 2017 onwards.