Top Zero Balance Savings Account 2020
A zero balance savings account is a type of account where you are not required to maintain the minimum balance. It is a savings account that comes with its own perks and privileges such as the liberty to withdraw the funds anytime by leaving your account empty. In such an account the interest is calculated based on the average balance in the account thus keeping your principal amount safe. You can open this account online and reap the benefits like the interest of up to 8% per annum, free net banking, no ATM/debit card charges, free passbook & cheque book facility, etc. Almost every bank offers a zero balance account opening facility thus it would be advisable to compare the lenders first and then open your account.
Top Zero Balance Savings Account 2020
|Banks||Minimum Balance Required (in Rs.)||Rate of Interest|
|Kotak Mahindra Bank||0/2000/3000/5000/10000/20000||5-6%|
|Bank of Baroda||0/5/1000||3.50%-4%|
|South Indian Bank||0/2500/5000||4%|
|Oriental Bank of Commerce||0/500/1000||3.50%-4%|
What is Zero Balance Savings Account
Zero Balance Savings Account is a type of account where you are not required to maintain a minimum balance. It is the most ideal option as there is no stipulated minimum balance and you are at liberty to withdraw funds anytime and leave the account empty. It is nothing but a savings account and comes with many features like-interest earned, liquidity of cash, eligibility for credit and asset protection at the same time.
How to Open
A zero balance savings account can be opened online. You simply need to provide a few KYC details such as aadhaar and PAN card details online. The process is quite easy and time-saving hence is preferred by many to open their zero balance savings account. Make sure you provide the correct details to avoid any hassle while opening the account.
Eligibility to Open Zero Balance Savings Account
Any Indian citizen can open the account
He/she should have valid KYC documents such as:
- Aadhaar Card
- PAN Card
Difference Between Current and Savings Account
|Features||Savings Account||Current Account|
|Account Type||Deposit Account||Daily Transaction|
|Minimum Account Balance (MAB)||0||Rs.10,000|
|Interest Rate||Up to 7%||Nil|
|Free Transactions Allowed||Limited||Unlimited|
Features and Benefits of Zero Balance Savings Account
- No Minimum Balance Required
- Earn interest up to 8% per annum
- Free net banking
- Can substitute as a salary account
- Free passbook and cheque book
- No ATM/debit card charges
- No restrictions on opening a number of bank accounts
- Provision opening a joint account with a family member
- Safe and secure way to save money
- Debit card issued can be used for payments
Types of Zero Balance Savings Account
Basic Savings Bank Deposit(BSBD): These accounts can be opened by any individual provided he/she has valid KYC documents. It is primarily meant for the poorer sections of society as an encouragement to start saving without any burden of charges or fees. A BSBD account can be operated singly, jointly, or by“either or survivor”.
Pradhan Mantri Jan Dhan Yojana Account (PMJDY): Accounts opened under the Pradhan Mantri Jan-Dhan Yojana (PMJDY) are also opened with zero balance. PMJDY is a national mission for financial inclusion to ensure access to financial services, including banking/savings and deposit accounts, remittance, credit, insurance and pension in an affordable manner. Accounts opened under the PMJDY are provided free passbook, free personalised Rupay debit card and free checkbooks. Other benefits of savings accounts opened under PMJDY include, accidental insurance cover of Rs.1 lakh and direct benefit transfer from government schemes into the account.
Children’s Account: SBI offers Pehla Kadam and Pehli Udaan savings accounts for minors. While the former can be opened in the name of an individual aged below 18 years, the latter is meant for those above 10 years of age. There is no MAB for either account. These savings bank accounts are meant for children to help them learn the importance of saving money.
Salary Accounts: Customers of SBI under the corporate salary package schemes are not required to maintain the MAB. The salary accounts are provided free facilities such as online NEFT/RTGS transactions, demand drafts and SMS alerts free of cost, apart from unlimited ATM transactions. Special privileges and offers for salary account holders are based on the category of company/institution.
Pension Accounts: SBI has not stipulated any minimum balance that has to be kept in your pension account maintained with the bank.
Frequently Asked Questions
Q.How can I check my savings account balance?
A.You can check your savings account balance through ATM,NetBanking, SMS and Passbook.
Q.Can I get any tax exemptions on my account?
A.Under Income Tax Act 80TTA, interest up to Rs. 10,000 is exempt from tax. For senior citizens, the tax exemption on a savings account interest rate is up to Rs. 50,000 under Income Tax Act 80TTB.
Q. Can I open a joint account?
A.Yes, it is possible to open a joint basic savings account. For this, the second-party has to be related to the primary account holder.
Q.Is it possible to make a nomination for a zero balance savings account?
A.Yes, it is possible to make a nomination for a zero-balance savings account. But, based on a few conditions:
- The nominee should share a relationship with the second party – either parent, spouse, sibling, etc.
- In the case of a minor, only a person legally bound to the minor can make a nomination for the account.
- Applicants need to fill in the Banking Companies (Nomination) Rules 1985 form to make a nomination.