Savings Account that allows zero balance in the account without any charges is known as zero-balance account. According to the Reserve Bank of India (RBI), this account is also known as Basic Savings Bank Deposit (BSBD) account that encourages people to open more savings accounts.
Various banks in India offer the zero-balance savings account facility for Indian citizens benefiting those who does not have a steady income or wish to keep a low account balance. Indian citizens who do not have a steady source of income or wish to keep a low account balance can opt for zero-balance savings account offered by various banks in India. These accounts do not charge any penalties on zero balance and come with multiple benefits for the accountholders. Here are more details that you must know about zero-balance savings accounts for Indian citizens.
The following is the list benefits of zero-balance savings account:
Bank | Features |
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 | |
Basic KYC documents are required. The account includes a free debit card, four free cash withdrawals from other bank ATMs, and unlimited free cash withdrawals from SBI ATMs. | |
Free RuPay debit card with a cash deposit limit of up to Rs. 10,000. Includes four free transactions at other bank ATMs each month. | |
Indian citizens aged 18 and above are eligible for a free debit card, passbook, and cheque book. They also receive 5 free transactions each month and free fund transfers via NEFT and RTGS. | |
Internet and mobile banking, along with a free cheque book, passbook, and debit card. | |
Customers can invest in fixed deposits with a maximum deposit limit of Rs. 1 lakh per account. To continue using the account after one year, customers must submit their signatures. | |
Free International debit card, Discounts on locker facility, Doorstep facilities | |
Kotak Mahindra Zero Balance Account (Kotak 811) | Customers can use mStore to shop online Fund transfers through NEFT and RTGS Free virtual debit cards Scan and pay option |
Free RuPay debit card Free passbook and cash deposits Single and joint accounts are available Customers can access 15,000+ ATMs all over India | |
Avail attractive interest rates Free RTGS and NEFT payment facilities International Platinum Chip Cards can be availed Free demand drafts | |
Unlimited withdrawals can be made in a month Free cheque books Unlimited deposits can be made in a month Free debit card |
Check out Top Bank Savings Account Interest Rates
The documents required to open a zero-balance savings account are as follows:
Name of the Bank | Name of the Zero-Balance Savings Account | Interest Rate (p.a.) |
Indus Small Savings Account | 3.00% - 7.00% | |
Pratham-Savings Account (BSBDA) | 3.00% - 7.25% | |
Digital Savings Account | 3.50% - 7.50% | |
811 | 3.00% - 4.00% | |
Basic Banking Account | 2.75% - 5.50% | |
Basic Savings Bank Deposit Account | 3.00% - 3.50% | |
Basic Savings Account | 3.00%- 3.50% | |
Basic Savings Bank Deposit Account | 2.70% - 3.00% | |
Utkarsh Bank | Utkarsh Basic Savings Bank Deposit Account (BSBDA) | 4.00% - 7.75% |
AU Small Finance Bank | 3.00% - 7.25% |
Customers may open a zero-balance savings account through the Pradhan Mantri Jan-Dhan Yojana (PMJDY) scheme in addition to the basic savings account or zero-balance savings account offered by banks across the nation.
The Modi-led Government launched the program in 2014 to provide financial access to everyone in the nation, even those without any, particularly in rural areas. Customers can open an account under this system without any KYC documentation; their signature and fingerprint would be sufficient as proof of eligibility.
Some of the features and benefits of the Pradhan Mantri Jan-Dhan Yojana (PMJDY) are listed below:
Zero balance savings accounts are a practical option for managing finances without worrying about maintaining a minimum balance. With various banks offering attractive features and interest rates, it's easy to find one that fits your needs. Compare options to choose the best account for your financial goals.
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.
Generally, banks have the concept of minimum Monthly Average Balance (MAB) for a 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.
A zero-balance savings account has no minimum balance requirement, so no initial deposit is needed. In short, it can be opened for free.
You can access your zero-balance savings account via the internet and phone banking facilities, at an ATM and at the bank if required.
While the nature of the zero-balance savings account is the same, customers 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.
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.
Yes, NRIs (Indian passport holders) can open zero-balance digital savings accounts after completing the standard process and KYC online.
No, you are allowed to hold only one 'Basic Savings Bank Deposit Account' in a bank.
No, banks are advised not to apply limits such as age and income criteria to open a zero-balance savings account.
Yes, you are allowed to hold other deposit accounts in the bank where you hold a Basic Savings Bank Deposit Account.
All banks must provide basic savings accounts to customers, according to the RBI and government regulations.
You might not be able to convert your savings account to a zero balance savings account because zero-balance accounts are designed for new bank customers.
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