Having a bank account has a number of benefits. Primarily, the money you make and save will provide you with decent returns if you deposit it in a bank. As a result, bank deposits allow you to earn interest while also ensuring the protection of your money. Get instant access to funds with no risk.
What is a zero balance savings account?
A savings account is a deposit account given by a bank into which you can deposit your money. Banks usually provide a Savings Account with the condition that you keep a certain amount of money in the account. Otherwise, you will be charged a maintenance cost. Certain types of Savings Accounts, known as zero-balance Savings Accounts, do not require a minimum balance. The concept is simple: you can open a Savings Account without having to have a certain amount of money in it.
With zero-balance accounts, you’re usually only allowed a certain number of transactions each month, usually about four. Your zero-balance account will be changed to a standard savings account if the limit is reached.
Throughout their lives, many people earn a large sum of money and resources. State and federal governments, PSUs, semi-government organizations, urban development agencies, educational institutions and universities, multinational corporations, and other sectors employ a large number of people. They earn a monthly salary, but they must put it into savings. Thus, employers open a Zero-Balance Account for them with a bank.
Features of zero balance savings account
No minimum balance
This account is a zero-balance account, as the name suggests. As a result, there is no need to keep a minimum balance. As a result, there is no penalty if the balance is 0. When it comes to opening this type of account, this is the key attraction for customers.
Mobile banking and net banking
Account holders receive a card that can be used to make digital payments. These cards employ electronic payment gateway systems like RuPay to make payments online quickly and easily. You can use NetBanking to view your bank statements and transfer and receive money. And you can do it all from your computer or smartphone. There are savings account calculator on banks website which will help you to evaluate the amount based on interest rate.
Restricted transactions
You can only make a certain number of transactions each month with a zero-balance account. Banks usually only allow four withdrawals per month. If you make more withdrawals than the bank allows, your zero-balance account will be converted to a standard Savings Account. For these extra transactions, some banks may even charge you a small fee.
Zero-Balance Accounts are perfect for keeping your money liquid while also keeping it apart from other interest-earning investments. They are quite useful for managing cash flow. As a result, the possibilities of losing money due to bounced checks, theft, or mistakes are reduced. Furthermore, banks permit transfers between zero balance and other accounts, making it a rapid and secure method of obtaining funds.
Inclusions
There is no requirement to keep a minimum balance here. You earn interest based on the prevailing rates. When you open a free account, you get a free ATM or debit card, a checkbook, and a passbook. Internet banking and fund transfer services allow you to instantly access your funds and assist family members in an emergency instead of going for a personal loan.
Secondary source
Banks allow you to open a Zero-Balance Account as a secondary source of income, according to RBI requirements. As a result, if you have a Savings Account with one bank, you can use it to handle your regular savings. Furthermore, this account pays the same interest as Regular Savings Accounts.
How to open a zero balance savings account?
Most banks provide these accounts with minimal documentation for personal and corporate use. You must present your identity verification, address proof, and the KYC form to the relevant bank while opening an account. You must submit them to the banking web or app to use online banking services. After approval, you can open the account within minutes.