Best Zero Balance Savings Account In India

To cater to the individualised needs of various account holders, the RBI has introduced various modifications to the savings account. One such is the zero balance account, which is immensely popular among salaried and self-employed people. Read on to learn about the best zero balance account opening online procedure, their benefits and more.

What is a Zero Balance Savings Account?

A zero balance account is a type of savings account where you can have a minimum balance of zero and still not have to pay a penalty fee. As per the RBI guidelines, this type of account is also known as Basic Savings Bank Deposit (BSBD) account. 

Account holders with a zero balance savings account can enjoy similar facilities to that of a savings account. You can open a single account or even a joint zero balance account to enjoy the benefits of this account type.

However, before you open a zero-balance account, you must remember that banks usually allow a limited number of transactions. This number usually ranges around four per month. In case you exceed this set limit, your account will be converted to a regular savings account.

You can access numerous benefits upon opening a zero-balance savings account, contributing to its popularity. 

Benefits of Having a Zero Balance Savings Account

Free-of-cost Additional Benefits 

Zero balance accounts offer numerous free services such as free cash and cheque deposits as well as a free passbook. Moreover, different banks offer several other free benefits to attract customers.

No Minimum Balance Needed 

It is not essential to keep a certain amount in your bank account. Hence, you can withdraw the entire amount when you need money without having to pay a penalty fee. 

Availability of Digital Payments 

You can easily make online transfers from this type of bank account using NetBanking. You can even use cards and electronic payment gateways from this bank account type for online transactions. 

Presence of Various Extra Benefits 

A zero-balance bank account offers you various additional benefits, such as debit cards, which you can use to make payments or withdraw money. Also, you can get the facility of a safe deposit locker at nominal charges. 

Interest Similar to a Savings Account 

The interest you will earn upon depositing in a zero-balance savings account is somewhat similar to a regular savings account. Hence, you will not regret missing out on interest upon parking funds in this account type.

Cost Savings for Businesses 

Businesses, especially startups, often face fluctuations in cash flows or limited funds. They can save substantially upon opening a zero-balance account with a reputed bank. 

More Accessible for Account Holders 

A zero balance account offers startups and small businesses with limited money to access some basic banking services. So they will not have the burden of maintaining a minimum balance. 

What are the Best Zero Balance Savings Accounts in India?

Following are some of the best banks offering zero balance savings accounts in 2024, along with their interest rates:

After going through the interest rates, you can easily choose the best online bank account opening with zero balance. 

How to Open a Zero Balance Savings Account Online?

Once you select the best zero-balance savings account, follow the below simple steps to open the account online:

Step 1: Visit the official website of the bank and select the option of zero balance savings account.

Step 2: Move to the application form to open this type of account and fill it out accurately.

Step 3: Upload scanned copies of the KYC documents and other required documents.

Step 4: Review the application form to ensure that there are no mistakes, and finally, click on the ‘Submit’ button.

The representative from the bank will verify your application and then process your request to open the account. 

Eligibility Criteria to Open a Zero Balance Savings Account

Before opening a zero-balance savings account, you need to fulfil some essential eligibility criteria, which are as follows:

• You must be a minimum of 18 years of age.
• You should have Indian citizenship.

You should note that these eligibility criteria might vary depending on the bank that you have chosen to open your zero-balance account with. 

What are the Documents Required to Open Zero Balance Savings Account?

You will need to submit the below essential documents when opening a zero-balance savings account:

• Identification Proof: Aadhaar card, PAN card, driving license, etc. 
• Address Proof: Utility bills, rental agreements, etc.
• Business Proof (if needed): Partnership deed, GST registration form, etc.

You may have to submit a few additional documents depending on the bank you have chosen to open the zero-balance savings account.

What is the Closing Procedure of Zero Balance Savings Account?

You cannot close your savings bank account online. To complete the closing procedure of a zero-balance savings account, you need to visit the physical branch of the bank and follow the steps below:

Step 1: Visit the nearest branch of the bank where you have your account.

Step 2: Request for the account closure form and fill it out with accurate details.

Step 3: Cross-check the data entered, mention your reason for closing your account and sign it.

Step 4: Submit your chequebook, passbook, debit card and Xerox copies of your ID proofs.

Step 5: Pay any closure charges applicable and close your account. 

The zero balance account opening online procedure is simple, and you can open it in some easy steps from the comfort of your home. Also, it offers you numerous benefits, making your savings journey smooth. However, make sure to compare the banks and choose the best zero-balance savings account to maximise your benefits.