Key features of a Zero-Balance Savings Account

Generally, when you open a Savings Account with any bank, you must comply with the bank’s terms to always maintain a specified minimum sum of money in your account. You will be liable to pay a penalty if you do not maintain this sum as a minimum balance in your Savings Account.

A Zero-Balance Account opening online eliminates this issue. It is a Savings Account with no minimum balance requirements. Before deciding whether to open a Zero-Balance Account, you need to understand its key features:

1. No minimum balance requirements

The most distinct feature of this Bank Account type is that it comes with no minimum balance requirements. You can maintain a nil balance in your account without worrying about charges or penalties. Even if you have no funds, you will retain the rights to any facilities with the account.

2. Free facilities

Speaking of facilities, your Zero-Balance Account offers you many. For instance, you get a free passbook along with your account. You can also deposit cash and cheques free of cost at any bank branch with which you have opened your Zero-Balance Account. These free facilities make banking much easier for you. Online Banking improves your banking experience by saving your travel time.

3. Easy transaction support

You can easily carry out various transactions with your new Zero-Balance Account. For instance, using the account balance, you can pay for various utilities like electricity, internet, mobile recharges, and more. You can also make digital payments through various payment modes, including UPI, by simply linking your Bank Account with the payment channel.

4. Online Banking

You can also transact through your bank’s portal with your Zero-Balance Account. This makes it extremely easy to check your balance online, pay for purchases on online portals, and carry out other transactions from your home without visiting the bank branch every time. The Mobile Banking facility lets you create an account on your bank’s app, carry out various transactions, make fund transfers, and open or close FDs.

You can enjoy banking on the go and easily rely on a Zero-Balance Account opening online for all your transactions.

5. Interest on account balance

Like all Savings Accounts, this one also offers interest on the account balance at the rate specified by the bank. Typically, the interest rates are lower than that of a Fixed Deposit. You can earn interest starting from 3% per annum, which adds up to your savings.

Conclusion

Before opening this account, ensure you have no other account in the same bank. If you do, it needs to be closed by providing a closure request. The bank can freeze them within 30 days of opening the Zero-Balance Account.