What is a Zero-Balance Savings Account & How to Open?

Nowadays, the banking service is coming up with various plans to make the financial system accessible to every section of people. This will enhance their experience and encourage them to invest more in such banking schemes. 

A zero-balance savings account is one such banking product for beginners who are totally new to this banking service and need help managing their finances. Before diving into the know-how, let’s first go through the basics of this scheme.

A zero-balance savings account is one such savings bank account that has a zero balance, and the bank has no right to penalise it for that. As per the RBI, this type of account is generally known as Basic Savings Bank Deposit account (BSBD).

One of the main goals of a zero-balance account is to encourage people to save more money. However, zero-balance accounts have a set limit of transactions per month. If this is exceeded, the bank is bound to convert your zero balance account to a normal savings account.

There are several benefits of having a zero-balance account in India. So, let’s have a look at them: 

• Usual Benefits: A zero-balance savings account can have access to all the usual benefits offered by the bank without having to maintain a minimum account balance. They can avail of ATM cards and can also opt for net banking. Along with these, the bank also provides them with a safety locker at a nominal fee.
• Easy Payments: Just like the regular account holders, zero-balance account holders are given access to cards to make payments easily. They use the electronic payments gateway system, RuPay, for this purpose.
• No Borderline Balance: Just as the name suggests, the account holders are not required to maintain the minimum balance required to hold a savings account. Also, the bank does not penalise them for that. This is why people are more attracted to zero-balance savings accounts.
• Free Benefits: Zero-balance account holders are also entitled to all the free services provided by the bank, such as free passbooks and cheque deposits at any branch of that particular bank.

Generally, different banks have different eligibility criteria for consumers. However, here are some of the common criteria that you need to fulfil before you head on to apply for a zero-balance savings account:

• Resident individuals.
• The customer should not have another zero-balance savings account in another bank.
• The customer should be above 18 years of age.
• The customer should have all the KYC documents at hand.

The banks differ in the process of applying for a zero-balance account, some have an online application process, and others have an offline application process.

Offline Process

Let us first see some of the common steps that every consumer must follow to open an offline zero-balance account in India:

• Select a bank.
• Keep the required documents at your closest.
• Fill up the application form for opening a zero-balance account.
• Submit all the necessary documents.
• Activate your new account.
• Lastly, don’t forget to link your account with your Aadhaar card.

Online Process

If we talk about the online application process, you need to first go to the official website of your chosen bank and click on the application form for a zero-balance savings account. It follows the same drill except for the fact that you have to upload all the documents. Once you finish all the steps, now login to your account with the customer ID and account number through the mobile app, and voila, you are done!

Apart from filling out an account opening form at the bank, you need the following documents to open a zero-balance account:

• PAN Card
• Voter ID 
• Driving License 
• 2 Passport Size Photos 
• Aadhaar Card