Zero-balance Account - Basic Definition
A zero-balance account is a banking service that does not require the account holder to maintain a minimum balance. As per the Reserve Bank of India (RBI) guideline, it is legally referred to as a Basic Saving Bank Deposit (BSBD) account. As a zero-balance savings account holder, you can enjoy similar facilities to a savings account. You have the option of opening a single or even a joint zero-balance account. However, you can perform a limited number of transactions with a zero-balance account.
Features of a Zero-Balance Savings Account
Zero-balance accounts offer the following features:
1. No Maintaining Minimum Balance
Zero-balance accounts do not require the account holder to maintain a minimum balance, thereby providing flexibility and ease of access to funds.
2. Zero Monthly Maintenance Fees
Zero-balance accounts eliminate the requirement to pay monthly maintenance fees.
3. Opportunity to Earn Interest
Zero-balance accounts offer interest on the deposited amount. However, the interest rates can be lower compared to traditional savings accounts.
4. Similar to a Regular Savings Account
A zero-balance account enables users to access the banking services of a regular savings account, which includes access to ATMs, chequebooks, debit cards, online banking facilities and more.
5. Simple Account Opening Process
The account opening process for a zero-balance account is digital.
6. Linked Benefits
Some zero-balance accounts are linked to other financial products or services, such as credit cards or loans. This offers additional benefits or incentives to you.
7. Inclusive to All
This banking service is inclusive to all, enabling individuals with low income or insufficient credit history to avail the benefits of a zero-balance account.
8. Ease of Digital Transactions
Zero-balance savings accounts allow you to access net banking and online payment facilities, helping you pay their bills with ease.
How to Open a Zero-balance Account?
To open a zero-balance account, follow these steps:
1. Search for a Bank
Start by researching private and public banks that offer zero-balance account options. Look for institutions that provide the features and benefits you need.
2. Gather Required Documents
Prepare the necessary documents required for opening the account, which include an Aadhaar card, passport, or driver's licence, proof of address and recent passport-sized photographs.
3. Apply for the Procedure
Visit the nearest bank branch or apply online through the bank's website or mobile app.
4. Fill Application Form
Complete the account opening application form provided by the bank. Ensure all information provided is accurate and up-to-date.
5. Submit Documents
Submit the required documents along with the application form. The bank will verify the documents and information provided.
6. Account Activation
Once the application is processed and approved, the bank will activate your zero-balance account. Then, you will receive your account number and other relevant details.
7. Set Up Banking Services
Set-up online banking, mobile banking, and any other services offered by the bank to access and manage your account conveniently.
Final Words
Opting for a zero-balance account offers many advantages, including flexibility, cost-saving benefits, and essential banking services without the need to maintain a minimum balance. With a simple account opening process and interest-earning opportunities, these accounts provide convenience and accessibility to all individuals, making them an ideal choice for hassle-free banking.
