As the name suggests, Zero Balance Savings Account means an account without the strings of maintaining a minimum balance. Read on to know more about it.
Opening a bank account might sound easy. However, with banks offering different types of accounts, choosing the right kind of Savings Account can be confusing and tricky. Zero Balance Savings Account sounds lucrative to people who want to be away from the hassle of maintaining a monthly average balance (MAB).
As the name suggests, Zero Balance Savings Account means an account without the strings of maintaining a minimum balance. If MAB is not maintained in a regular savings bank account, then a penalty is levied.
This kind of account is offered to a certain category of customers like salary account holders and through Pradhan Mantri Jan Dhan Yojana (PMJDY) – for people who cannot afford a regular savings bank account. To open such an account, you will be needed to submit basic KYC documents.
Let’s take a look at 5 important things you need to know about Zero Balance Savings Account.
Banks levy penalty for non-maintenance of the minimum account balance in a regular savings account. A zero balance account scores over a regular savings account as you are not required to maintain a minimum balance. When you get yourself a zero balance account, you can keep any amount of money you want.
You Can Still Use Internet Banking
A zero balance account takes away the load of MAB, but you can still enjoy all the facilities of a regular bank account. Do get your internet banking activated while opening the account. If you are not familiar with technology and internet, bank officials will assist you and explain all about internet banking.
ATM Card, Cheque Book etc
Like a regular savings account, a zero balance account comes with facilities like ATM card, chequebook, passbook etc.
The Free ATM/Debit card can be used for transaction globally. The chequebooks are offered free with a fixed amount of leaves per year. A new cheque book is issued for a nominal fee.
What Happens If Account Is Dormant
If there is no transaction from your side for a specified period of time, then your account becomes dormant. You will not be allowed transactions via ATM, internet, and mobile banking. To enjoy the benefits, you will be required to activate it again.
Account Holders and Rate Of Interest
Account holders may choose their zero balance account to be operated personally, jointly, or with either or survivor, former or survivor, anyone or survivor etc. The rate of interest for the savings made in a zero balance account is similar to that of a regular savings accounts.
If you plan to open a Zero Balance Savings Bank Account, then it would be wise to do a thorough research or seek help from a financial advisor on whether you need one such account.