If your earning is low and you want to open a savings account, a Zero Balance Account is a great alternative for you, fundamentally it is a type of savings account. The idea of a Zero Balance Account is very simple. In this type of bank account, you can open a savings account but you do not have to maintain a minimum balance for it, like in most of the private sector banks’ savings accounts you have to keep a minimum of Rs 5,000 to Rs. 10,000, depending on the bank norms. The main attraction of this account is that there is no penalty in case of zero balance.
Eligibility and features
Some of the features of a zero balance savings account are, no minimum balance is required, an account holder can withdraw a portion of the amount or full amount anytime without paying any charges to the bank. Additional benefits of the Zero Balance Savings account are, there are no extra charges for debit card, free passbooks every year in some of the banks, and cheque book, bank does not apply internet banking charges and charges for the cash deposit transaction. The account has its limitations set as a maximum of four cash withdrawals are free of cost in a month. For example, SBi charges Rs 15 plus GST for every additional cash transaction for the fifth withdrawal.
Here are few of the best zero balance savings account
RBL Bank Zero Balance Savings Account
RBL bank offers numerous types of saving account that is why it is the most preferred account especially when it comes to RBL Bank Zero Savings account. There is no limit set by the bank for the minimum amount to be kept in the account.
| Interest Rates | 5.00% – 6.75% per annum |
| Chequebook Facility | 2 cheque books per annum for free |
| Monthly Average Balance | No Limit on Maximum Balance |
| Eligibility | Resident Indian |
| Debit Card | Free Rupay Debit Card with a withdrawal limit of Rs 50,000 |
HDFC Bank Zero Balance Savings Account
HDFC is one of the leading private banks of India, in the Zero Balance Savings Account of the HDFC bank you need not pay any money while opening the account.
| Interest Rates | 3.00% – 3.50% per annum |
| Chequebook Facility | Free 25 cheque leaves per financial year |
| Monthly Average Balance | NIL |
| Eligibility | Resident Individuals
Hindu Undivided Families (HUFs) Customer should not have any other existing Basic Savings Bank Deposit A/C with another bank Customer should not have any other HDFC Savings Account |
| Debit Card | Free Rupay Debit Card |
State Bank of India Zero Balance Savings Account
SBI has the largest customer base across India as it provides seamless customer services to the people. A savings bank account will also be operational if there is no money in the account without any penalty.
| Interest Rates | 2.70% per annum |
| Chequebook Facility | First 10 cheque leaves free in a financial year
Thereafter, 10-Leaf Cheque Book at INR 40 plus GST 25-Leaf Cheque Book at INR 75 plus GST |
| Monthly Average Balance | NIL |
| Eligibility | All individuals/Central/State Govt Departments |
| Debit Card | Free Rupay Debit Card |
Kotak Mahindra Bank-811 Digital Bank Account
The Zero Balance Savings Account of Kotak Mahindra bank is popularly known as 811 Digital Bank Account. This bank account is opened with zero charges on non-maintenance of balance and the best part is that you do not need to step out of home to open the account as it is done digitally.
| Interest Rates | 4.0% per annum |
| Chequebook Facility | No cheque book is issued and cheque deposit not allowed to customers |
| Monthly Average Balance | Rs 10,000 |
| Eligibility | Resident Indian
Hindu Undivided Families (HUFs) Foreign Nationals living in India |
| Debit Card | Virtual Debit Card
Free Platinum International Chip Debit Card |
Standard Chartered Bank Zero Balance Savings Account
Standard Chartered Bank Zero Balance Savings account can be opened with minimum requirements like using adhaar card for basic authentication. The bank offers free Standard Chartered ATM Debit Card which can be used to withdraw cash or make payments online.
| Interest Rates | 0.50% – 3.75% per annum |
| Chequebook Facility | Multi-city cheque book for free |
| Monthly Average Balance | NIL |
| Eligibility | Resident individual
Foreign national Hindu Undivided Family (HUF) |
| Debit Card | Standard Chartered Platinum Debit Card |
Conclusion
There are many financial institutions which are present in the market to provide services to the customers who want to open the savings account to keep their money safe. So, it is important for any individual to check if the institution is serving the needs of the present as well as the future. The charges and features vary from bank to bank but you need to take care of parameters like interest rate, transaction charges, net banking facilities, deposit limit, funds security, cash withdrawal, and etc.
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