Opening a zero-balance savings account in a bank is an ideal option for most people. Especially towards month-end, maintaining a minimum balance in one’s savings account becomes a tedious task. A zero balance account, as the name suggests, is a savings account that does not forces its customer to maintain a certain sum (minimum balance) in their bank accounts.
If you have a zero balance savings account, your balance can go down to zero and the bank will not deduct any penalties. The majority of the banks in India keep a minimum balance limit, and therefore they deduct a certain amount of money if their customers are not able to maintain the minimum balance.
Here are all the banks that offer a zero balance savings account
IDFC First Bank
IDFC First Bank’s zero balance savings account - Pratham Savings Account- has a rate of interest of 4.00 per cent. The bank permits a daily ATM withdrawal limit of Rs 40,000 and it also offers a complimentary personal accident insurance cover of Rs 2 lakh.
State Bank of India
State Bank of India has named its zero balance savings account service as ‘Basic Savings Bank Deposit Account (BSBDA).’ The bank offers a rate of interest of 2.70 per cent and has no upper limit on account balance. If you have all the documents required for the KYC, then you can go ahead and open your account in this bank.
Yes Bank gives a 4.00 per cent rate of interest for its zero balance savings account, Smart Salary Advantage account. Only salaried people are eligible to open this account in YES Bank. An ‘Engage’ debit card with the withdrawal limit of Rs 75,000 will be given to the customers. The card offers accidental death cover, lost card liability, and purchase protection.
People who are employees of a company with a salary agreement with HDFC Bank, can open a zero balance savings account, Basic Savings Bank Deposit Account (BSBDA). The bank gives its customers a rate of interest of 3.00 per cent. However, if an individual has another savings or salary account in any other bank, they are not eligible to open this savings account.
Kotak Mahindra Bank
The zero balance savings account, 811 Digital Bank Account of Kotak Mahindra Bank offers 3.50 per cent rate of interest. This account can be opened via a video KYC, eliminating the need to visit the bank physically. With this account, individuals can transfer the money online via NEFT or IMPS.
Standard Chartered Bank
Standard Chartered Bank provides 2.75 per cent rate of interest for its zero balance savings account, Aasaan/ BSBDA. It is important to note that the interest will be calculated at applicable Savings Bank Interest Rate on the daily available balance. The same will be paid at quarterly rests, too. The account can be opened via instant Aadhaar based eKYC and it offers free NEFT/RTGS transactions.
Along with a rate of interest of 4.00 per cent, people opening account in Induslnd Bank’s zero balance savings account, Indus Online Savings Account, are given personal accident insurance of Rs 2 lakh with a Platinum Plus debit card. The individual opening this account should have a valid mobile-linked Aadhar number and PAN number.