A savings account is a simple yet super effective financial service that traditional banks and neobanks provide to help you earn interest on your funds. Savings accounts differ in various ways based on their function, eligibility criteria, charges and fees. A very popular type of savings account is where you are not required to have a minimum balance; it is called a zero balance savings account. When looking for a savings account, many customers prefer this option.
Now the question is, which bank is best for zero balance account in India? Let’s look at what you can expect from these accounts and their features and compare the best zero balance savings accounts in India.
What is a Zero Balance Savings Account?
A normal savings account is an account provided by a bank that allows you to deposit and withdraw money when needed. You earn interest on the amount that otherwise would be sitting idle. As there is no maturity date, you always enjoy the liquidity of funds. However, you need to maintain a minimum balance in your account as regulated by the bank and failure to comply can result in penalties.
A zero balance savings account allows you to maintain a savings account without worrying about a minimum balance or related penalties.
What Are the Features of Zero Balance Savings Accounts?
- You can open and maintain this account with zero balance.
- The bank issues a free passbook to zero-balance account holders, similar to a normal savings account.
- You can use this account to pay utility bills online through internet banking.
- The bank generally issues a free ATM and debit card so you can easily access your account and make payments.
- It is possible to make a cash or cheque deposit to this account through any bank branch.
- Some banks also offer a safe deposit locker to account holders.
- Zero balance digital savings accounts also come with additional features such as – a virtual card, digital banking, secure transactions, no maintenance fees, etc.
Which Bank Is Best for Zero Balance Account in India?
Here are the best zero balance savings accounts in India and their features and offerings that you can currently benefit from:
1. Freo Save
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A Zero Balance Savings Account Online
- You can earn up to an incredible 7%* interest with Freo Savings, which is higher than most other savings accounts.
- You can use your Freo digital savings account to unlock access to amazing shopping & credit products like Freo Pay and MoneyTap.
- Get rid of lengthy paperwork and documentation or frequent branch visits as the savings account app makes things easier and faster as it offers a completely digital experience.
- Get a virtual card to use as you like (a physical card is coming soon). You can also block or unblock your card conveniently and protect your account against fraud.
Download The Freo Save App To Open Your Zero Balance Account Without Hassle & Earn Up To 7%* Interest.
Get Freo Save2. State Bank of India
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Basic Savings Bank Deposit Account (BSBDA)
- You can open an SBI zero balance savings account >with valid KYC documents.
- There is no upper limit for the maximum balance in the account.
- Withdrawals are possible using a withdrawal form at bank branches or through ATMs.
- You also get a standard Rupay ATM-cum-debit card.
- This account is available at all SBI branches.
- There are no additional fees for NEFT/RTGS payments.
- No extra charges to activate an inoperative account or for account closure.
The interest rate is 2.70% p.a. up to ₹1 Lakh and above.
3. Kotak Mahindra Bank
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811 Digital Bank Account
- You can open a zero balance savings account online with video KYC and avoid bank visits.
- You have to install the 811 app or visit the official website to open an account.
- The account comes with zero charges on non-maintenance of balance.
- You also get an 811 virtual debit card that can be used for online shopping, DTH recharge, bill payments, etc.
- You can transfer funds through IMPS, RTGS and NEFT.
- There is also a scan and pay option.
- You can earn 4% interest p.a. on your Savings Account balance above ₹50 Lakh and 3.50% interest p.a. on Savings Account balance up to ₹50 Lakh.
4. IDFC Bank
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First Bank Pratham Savings Account
- IDFC offers limitless withdrawals at any micro ATM on its zero balance accounts.
- This type of savings account in IDFC is a BSBDA (Basic Savings Bank Deposit Account).
- Net and mobile banking options are available.
- You get a free chequebook, passbook, and debit card.
- The account also allows you to pay your bills and generate mini bank statements.
- Daily ATM withdrawal is limited to ₹25,000, and POS has a limit of ₹1,00,000.
- To open the account, visit the nearest bank branch and make sure to carry all the necessary documents.
- You get a RuPay Classic Debit Card.
- Get interest rates up to 7%.
5. HDFC Bank
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Basic Savings Bank Deposit Account (BSBDA)
- It is a BSBD account (Basic Savings Bank Deposit Account) with a free passbook facility for account holders.
- Account holders get all facilities of a normal savings account, including an ATM cum debit card, free deposits, free passbook services, withdrawals facility, chequebook, Demand Drafts, email statements, etc., without additional charges.
- You also get four free withdrawals, including IMPS, cash withdrawal, and NEFT/RTGS, every month with no limit on the amount.
- Safe deposit locker and super saver facilities are available.
- This zero balance savings account in HDFC offers a complimentary RuPay debit card.
- Phone banking and net banking are available.
- Any Indian resident and HUF are eligible to open a BSBDA.
- The interest rate on an amount less than ₹50 Lakh is 3% and 3.5% on any amount above.
6. IndusInd Bank
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Indus Online Savings Account
- Open this zero balance account by submitting an online application with your PAN and Aadhaar card details.
- It allows unlimited ATM withdrawals and free net and mobile banking access.
- Any Indian citizen above the age of 18 years is eligible to open this savings account with no minimum balance.
- Transfer funds for free via NEFT, IMPS, and RTGS.
- Avail of WhatsApp banking services and a free passbook, chequebook, and debit card.
- Get cashback on several e-commerce platforms.
- Any Indian resident and HUF are eligible to open a BSBDA.
- Get interest rates upto 6.75%
7. Standard Chartered
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Basic Savings Bank Deposit Account
- Open this basic savings bank deposit account using Aadhaar card-based authentication.
- You get a free international debit card, monthly statement, and chequebook.
- You can opt for online banking services and make transactions via NEFT and RTGS.
- You also get discounts on locker facilities.
- No limit on monthly ATM withdrawals and access to ATMs of other banks.
- You get a Platinum debit card to make payments.
- The interest rate is 2.75% up to ₹50 Lakh and 4% up to ₹40 Crore.
8. YES Bank
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Smart Salary Advantage
- You get unlimited withdrawals every month at any Yes Bank ATM along with 5 free transactions at any bank's ATM across India.
- IMPS, UPI, RTGS, and NEFT facilities for online transactions.
- Free Demat account and 100% AMC Waiver for the first year.
- For salaried people only.
- The debit card offers lost card liability, accidental death cover, and purchase protection.
- Interest is 3.5% up to ₹1 Lakh and 5% up to ₹10 Lakhs.
9. RBL
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Basic Savings with your Account
- You get a free Rupay Card with a limit of ₹50,000 for ATM cash withdrawal and ₹30,000 for POS.
- It also offers free transactions at RBL Bank and ATMs.
- Visit a nearby RBL branch to open the account and access it from any RBL branch in India.
- Get other benefits, such as mobile banking, internet banking, phone banking, SMS Banking and Alerts, e-statement, online bill payments, etc.
- Replace a damaged card for free.
- The interest rate is 5.50% p.a. on balances more than ₹1 Lakh and up to ₹10 Lakh and 4.25% p.a. on balance up to ₹1 Lakh.
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