- A dedicated Savings account makes your self reliant for the rainy days. Saving money is considered a good practice among the salaried folks in India. That is why different lenders offer savings accounts to set straight the much-needed money.
- There are several benefits of saving accounts and all the lenders offer the same for depositing your savings. Lenders usually ask their customers to keep a minimum balance in their savings account for its smooth operation. If the account balance dips down the minimum balance, the bank charges some amount of penalty depending on bank to bank.
- According to finance ministry data, savings account holders paid nearly ₹ 10,000 Crore to banks in the last three years in penalties for not keeping a minimum balance in their account.
To avoid these penalty charges, banks also have an option of a Zero Balance savings account.
In this article, we will talk about the benefits of having a Zero Balance Savings Account. Let us know more about savings accounts versus current accounts and its other benefits.
- Earn Interest: You earn interest on your deposits as per the general savings account rates. Not only it helps in saving money but you also earn some at attractive interest rates.
- Banks offer ATM-cum-debit card facility for all the account holders and access to the wide ATM network all over the country. Some banks also offer International debit-cum-ATM card for transactions abroad.
- Most of the banks offer NetBanking facilities to the Zero balance account holders which helps you keep a close eye on the funds in the account and you can have access to your account from anywhere in the world. NetBanking helps you get all the necessary details of your account such as account summary, account statement, details of fund transfer. Other facilities such as payment of utility bills, demand draft, register for SMS alerts, managing beneficiaries, etc are also made available to account holders
- Avoid Penalties: With minimum balance zero, you don’t need to worry about keeping a minimum balance in your account to avoid penalties levied by the banks.
- Banks offer RTGS/NEFT fund transfer facility for the account holders without any charge.
- You can pay your utility bills through NetBanking without any transaction charge.
- Lenders offer free cheque with a fixed number of leaves every year, if you need multiple cheque books then you get it by paying nominal fees
- Banks also offer a specific number of free ATM transactions every month, subsequent transactions are charged a nominal amount.
Open A Zero Balance Savings Account under Pradhan Mantri Jan Dhan Yojana (PMJDY)
Zero Balance Savings Account has so many benefits for customers. Considering its popularity and benefits, the ministry of Finance, Govt of India launched a financial inclusion programme. This program aims at providing easy access to financial services like Saving bank accounts, remittance, credit, insurance, pension, etc to all its citizens affordably.
What Are The Benefits of Savings Account Opened Under PMJDY?
- There is no requirement of monthly average balance (MAB) or minimum balance similar to regular Zero Balance Savings Account
- Interest on the amount deposited as per the bank rates
- ₹ 1 lakh Accidental insurance cover and the RuPay
- Benefits of government schemes are credited to this account through Direct benefit transfer.
- After 6 months of satisfactory operation of the bank account, overdraft facility is offered
What Are The General Terms & Conditions for Zero Balance Savings Account Opened Under PMJDY?
- In a given financial year, the total credit in the account shouldn’t exceed ₹1 lakh
- The debit balance shouldn’t exceed ₹ 50,000 at any given time.
- The account holder should submit all the KYC documents
- If there are any other terms of the bank where the account is opened
Top Banks for opening a Zero Balance Savings Account
| Zero Balance Savings | Account Minimum Rate of Interest |
| 811 Digital Bank Account – Kotak Bank | 3.50% |
| ASAP Instant Savings Account – Axis Bank | 7.10% |
| Smart Salary Advantage – Yes Bank | 5.00% |
| Basic Savings Bank Deposit – SBI | 2.70% |
Conclusion: A Zero Balance Savings Account brings many benefits similar to regular savings account. Cheque book, ATM card, Passbook, RTGS/NEFT transactions and many more. The main difference between a Zero Balance account and regular savings account is that in former’s case, there is no requirement to keep a minimum monthly balance.
MD: Learn about the benefits of opening a Zero Balance Savings account and get Facilities such as RTGS/NEFT, ATM card, cheque book along with others for no extra cost.
