A zero balance savings account is a type of savings account that doesn’t require the account holder to maintain a minimum balance. With leading banks, you can easily open a zero balance savings account online from the comfort of your home. Since there is no minimum balance requirement, you can utilise the funds in your zero balance account flexibly.
Advantages of a zero balance savings account
- No minimum balance requirement unlike a regular savings account
- You can earn interest on the account balance and grow your money gradually
- Zero balance savings account comes with mobile and net-banking facilities that make transactions smooth and hassle-free
- You can use your zero balance savings account for making mutual fund investments, fixed deposits, recurring deposits, paying credit bills online, etc.
- You can enjoy online shopping, recharge your mobile, DTH set top box, and transfer and receive funds instantly with the help of your zero balance savings account
- When you open such type of account, the bank provides free cheque book with fixed amount of leaves per year. You can also obtain additional cheque books at a minimal fee
By opening a zero balance savings account, you can manage your finances as well as track your expenses efficiently. Moreover, you can cut down on your undue expenditures and inculcate the habit of saving with the help of a zero balance savings account.
Disadvantages of a zero balance savings account
- Only Indian citizens can open a zero balance savings account
- 1 lakh is the maximum you can keep in an instant zero balance savings account. This restriction can be removed after you undergo a complete KYC process
- If there are no transactions made from your account for a specified duration, your account may become dormant. Once the account is dormant, you won’t be able to withdraw funds, carry out online transactions and phone banking. In such a situation, you will have to activate your account again to use it
- Foreign remittances cannot be made to zero balance accounts
Now that you know about the various pros and cons of a zero balance savings account, let’s proceed to understand the steps to follow for opening it:
How to open a zero balance savings account?
Step 1: Visit the preferred bank’s official website
Step 2: Fill the application form required to open a zero balance savings account
Step 3: Upload the digital copy of all the necessary documents such as address proof, identity proof, income proof, etc.
Step 4: The details can be verified instantly using online KYC processes, and you will be able to use your account
In case of any query while opening a zero balance account, you can contact the bank representative and get it resolved easily. So, why wait? Open a zero balance savings account and manage your expenses in the best possible way.