Zero Balance Saving Account in India

Zero-balance savings accounts are one of the best and easiest methods of ensuring financial access for everyone even people without a regular income. These accounts are highly flexible as they require no minimum balance to be kept.

The benefit of opening a zero-balance savings account online, such as the best online bank account opening with zero balance, makes it one of the most easily accessible bank accounts.

Understanding zero-balance accounts and the benefits provided by banks can help you find the best zero balance account in India suited for your needs.

Table of Contents:

• ⇾ Zero Balance Saving Account Interest Rates
• ⇾ Understanding Zero Balance Saving Account
• ⇾ Key Features of Zero Balance Saving Account
• ⇾ Steps to Open a Zero Balance Savings Account
• ⇾ Pradhan Mantri Jan Dhan Yojana Zero-Balance Savings Account
• ⇾ Zero Balance Saving Account Eligibility
• ⇾ Documents Required for Zero Balance Saving Account
• ⇾ Benefits of Zero Balance Saving Account
• ⇾ Limitations of Zero-Balance Savings Account
• ⇾ Frequently Asked Questions

Zero Balance Saving Account Interest Rates

Almost all of the banks offer zero-balance savings accounts with an attractive array of features like no minimum balance and free debit cards. Some of them also provide competitive interest rates, for added benefit of the user.

Below is a comprehensive list of banks and their zero-balance accounts, along with their interest rates, to help you find the best bank for zero balance account that suits your needs.

Understanding Zero Balance Saving Account

A zero-balance savings account is a great way for everyone to begin their financial journey without the pressure of maintaining a minimum balance in the account.

It provides basic banking services like deposits, withdrawals, and fund transfers, promoting financial inclusion, without the worry of spending more than the minimum balance.

These accounts are ideal for those with irregular income, offering easy access to banking without penalties for low balances.

Key Features of Zero Balance Saving Account

A zero-balance savings account is one of the most flexible account schemes, allowing anyone and everyone to open an account, regardless of age or income. Below are some of the major benefits of a top zero-balance savings account in India.

1. No minimum balance requirement.
2. Basic banking features.
3. Interest rates.
4. Accessibility to everyone.
5. Free debit cards, passbooks, and chequebooks.
6. Unlimited transactions.
7. SMS and email alerts.
8. No maintenance charges.

Steps to Open a Zero Balance Savings Account

Following are the generic steps for opening one of the best zero-balance account opening online options among the best zero balance savings account in India.

1. Visit the official website for net banking or use the official mobile app.
2. You can see an option to register your profile or start a new account.
3. Select ‘New Account Opening’.
4. Fill in the Online Application Form.
5. Upload KYC Documents.
6. Complete KYC verification (Done via video calls in some cases).
7. Complete biometric verification (if applicable).
8. Submit the application.
9. Visit the Branch for final verification (If asked).
10. Receive Account Details.
11. Activate Digital Banking Services.

Alternatively, the accounts can also be opened upon visiting the branch. But make sure you have all the necessary documents at hand.

Pradhan Mantri Jan Dhan Yojana Zero-Balance Savings Account

Starting with the government of India in 2014, the Pradhan Mantri Jan Dhan Yojana is a program that is focused on helping economically weaker sections by providing affordable access to financial services such as banking, insurance, and savings to all households in the country.

Features of PMJDY Accounts:

• Zero Balance Savings Account.
• RuPay Debit Card.
• Accidental insurance covers up to ₹2 lahks.
• Overdraft facility up to ₹10,000.
• Life insurance cover of ₹30,000.
• Direct Benefit Transfer (DBT).
• Easy Access to Government Schemes

Various banks from the public and private sectors come under PMDJY, such as SBI, BoB, PNB, Union Bank, Canara Bank, HDFC Bank, ICICI Banks, Axis Banks, and many more.

Zero Balance Saving Account Eligibility

As a program focused on including every individual in a healthy financial practice, zero-balance accounts have very simple eligibility criteria. The eligibility criteria for zero-balance accounts include

• Indian citizenship.
• At least 10 years of age.
• Have KYC documents

Apart from these parameters, the person must undergo identity verification, add a nominee, and add other contact details.

Documents Required for Zero Balance Saving Account

While zero-balance savings accounts are quite liberal compared to other accounts in terms of criteria, it does require some documents for verification of identity and credibility.

They include:

• Identity proof: Aadhar, PAN Card, Passport, Voters ID, Driving license, etc.
• Address proof: Aadhar Card, Passport, Voters ID, Driving license, Utility bill, etc
• Recent photographs: Passport size, 1-2 copies.
• PAN card/Form 60/Form 61: Income-related documents.

Other documents,

For minors:

• Birth certificate/school ID.
• KYC of guardians.

For NRI:

• Valid passport.
• Valid overseas address proof.
• VISA.

Benefits of Zero Balance Saving Account

A zero-balance savings account offers numerous benefits for an individual, such as:

1. The zero-balance savings account can be opened by anyone, via a website or application.
2. Account users don’t have to worry about maintaining a minimum balance.
3. A great benefit for people who don't have a steady income source is that there are no periodic crediting or maintenance charges.
4. Account holders have easy access to money, as first debit cards and passbooks are free.
5. Users can avail of features like deposits, withdrawals, fund transfers, cheque facilities, etc., for free.
6. Users can have access to digital features like mobile banking and internet banking without any restrictions.
7. Account holders can receive direct transfers made by the government into their accounts.
8. Some zero-balance accounts, (especially those under schemes like Pradhan Mantri Jan Dhan Yojana), offer free accidental insurance (up to ₹2 lakhs).
9. Banks offer high protection for these accounts, like any other, protected with PINs, OTPs, and other security measures for online transactions and ATM withdrawals.

Limitations of Zero-Balance Savings Account

Even though highly flexible, zero-balance savings accounts do have their restrictions on usage. Many include—

1. Non-Usage or Dormancy Charges

If the account is not used for a long period, some banks may charge a dormant account fee to maintain the account.

2. Withdrawal Limits

Some banks impose a limit on the number of free withdrawals allowed. Post this limit, there might be a small charge for additional withdrawals.

3. ATM Withdrawal Fees (Out of Network):

While many banks provide free ATM withdrawals from their own network, using ATMs from other banks might incur a small fee.

4. SMS/Email Alerts

Some banks may charge for SMS or email alerts beyond a certain limit.

5. Issuance of ChequeBook

Some zero-balance accounts may allow limited free chequebooks.

6. Issuance of Debit Cards

In some cases, while the debit card may be free initially, there may be a charge for re-issuance or replacement of lost or damaged cards.

7. NEFT/RTGS Charges (In Certain Banks)

Some banks may impose a small fee for electronic transfers like NEFT or RTGS, although these services are usually free for basic accounts in most cases.