Savings accounts are essential banking tools that allow you to deposit your surplus funds securely while earning interest. To enhance the banking experience, banks offer various products, including zero-balance savings accounts.
If you’re acquainted with savings accounts, you’ll know that many banks typically require a minimum average balance. However, if you have an online zero-balance account, there’s no need to meet such a requirement. Let’s explore more about this type of account.
What is a Zero-Balance Saving Account?
As its name suggests, you can open a zero-balance account without maintaining a minimum balance. The major difference between a regular savings account and a zero-balance savings account is the requirement of maintaining a minimum Quarterly Average Balance (QAB) in the account.
Generally, finance companies have a QAB policy for savings accounts. If the account holder does not fulfil the QAB requirement, they must pay a non-maintenance charge or their account is revoked. However, no such QAB policy applies to a zero-balance savings account.
Benefits of Opening a Zero-Balance Savings Account
A zero-balance savings account offers several benefits, including the following:
- A zero-balance savings account serves people who cannot continuously maintain a minimum balance in the account, making it accessible to all socio-economic sections without financial obstacles.
- The account relieves the strain of maintaining a certain amount in the account, giving flexibility to handle the money better during emergencies or economic uncertainties.
- Customers with a zero balance account can withdraw or deposit money as required without worrying about additional fees and penalties.
- A zero-balance account is a good option for minors or young adults who need to inculcate the habit of saving and develop financial discipline.
- The interest rates are competitive, increasing the savings and growing the money without limiting access.
Zero-Balance Account Opening Process
The procedure to open a zero-balance account online is hassle-free and simple. Reputed banks simplify the process by providing the account opening facility online through their website or app. These are the steps to follow:
- Check the Eligibility Requirements
The zero-balance savings account is ideal for any resident Indian above 18 years of age who wants to open an account without an Average Minimum Balance (AMB) requirement. If you already have a savings account but need another one to set up investments or save money, consider opening a zero-balance savings account.
- Fulfil the Documents Required
Zero balance savings account documents required are minimal. You can open one with just your PAN and Aadhar card.
- Apply Through the Website or App
Follow these steps to open an account online:
- To open a zero-balance account online, visit the bank’s official website on a laptop or mobile phone or download their phone app.
- Explore the zero balance account option and begin the process by filling out an application form with the necessary details.
- Upload digital copies of all the zero balance savings account documents required, such as Aadhar and PAN card, and submit the application form.
- Complete the KYC verification process through video KYC online.
- After successful bank verification, you will receive a customer ID and account number.
- Log in via mobile or net banking to create a password and activate the account for online transactions.
Features of a Zero Balance Savings Account
A zero-balance savings account is an innovative banking product that helps manage your money with greater accessibility, making it a great option for those looking for a streamlined banking experience. Here’s a look at the features of this account type:
- Earn an ample interest rate on your account balance
- No need to maintain an annual minimum balance in the account
- Access to a virtual debit card without any extra charges
- Regular bank account facilities, like passbooks, debit cards, cheque books, etc.
- Easy online account opening process
- No fee for UPI, NEFT, and IMPS online transfers
- Facilities like mobile banking, net banking, recurring deposits, fixed deposits, etc.
A zero-balance savings account significantly impacts your financial experience, especially during emergencies when you need money without any restrictions. By opening a zero-balance account, you can enjoy lucrative deals and offers without maintaining a minimum balance in the account.
