Savings bank accounts are the most popular and basic banking facilities. Indian banks offer several lucrative features to attract customers, and one among them is the savings account without any minimum balance requirement. Some banks also started offering zero balance accounts as part of the Pradhan Mantri Jan Dhan Yojana (PMJDY), which aims at providing a savings bank account to every Indian citizen. Let’s learn more about zero-balance savings accounts and look at a few banks giving the highest interest rate on these accounts.
What is a Zero Balance Savings Account?
Most banks require their account holders to maintain a minimum balance in their accounts at all times. That means the money lies idle in the bank account for a whole month to fulfill the requirement. Some banks calculate it as the minimum average balance in a month. If the average balance goes below that requirement, banks charge penalties from the account holders. Those who do not want to maintain a minimum monthly balance can open a digital bank account with a zero balance. The account type does not have a minimum balance requirement, allowing account holders to use every penny they deposit in their accounts.
Benefits of a Zero Balance Bank Account
A zero-balance bank account has various benefits that make it better than its counterparts. These include the following:
- No Minimum Balance: The primary benefit is that account holders do not need to maintain any minimum balance in their account, which means they can use even the last penny available in their savings. It is an ideal facility for students and salaried employees with limited resources.
- No Penalties: A zero balance account saves consumers from paying low-maintenance penalties that most traditional savings accounts levy in case of a default.
- Easy to Open: Traditionally, people had to visit bank branches to open a savings account. Today, they can follow the digital bank account zero balance opening procedure to open an account from the bank’s website. Provide a few details, and voila. The user can start using the new account within minutes.
Top Banks Offering High-Interest Rates on Zero Balance Savings Accounts
Below is a list of top banks offering zero-balance savings accounts with high interest rates:
- RBL Bank
Known as the Basic Savings Account, the zero balance savings account is one of the unique features of RBL. These include a free RuPay Card with high withdrawal limits, free money transfers using RTGS and NEFT, unlimited ATM transactions, and higher FD interest rates. Facilities of mobile banking, net banking, bill payment, SMS alerts, etc., ease the journey of using an RBL savings account.
- SBI (State Bank of India)
The bank offers different bank account types, including the zero balance savings account. Individuals holding valid KYC documents can open this account at any SBI branch across India. The account comes with attractive interest rates and other benefits, including a RuPay ATM and debit card, no minimum and maximum balance, cash withdrawal at any SBI branch or ATM, mobile/net banking, etc.
- HDFC Bank
HDFC is one of the leading banks in India, and many people prefer to open accounts. Their BSBDA or Basic Savings Bank Deposit Account is the a balance savings account that meets every individual’s banking needs. Account holders can access banking facilities across India at any HDFC bank or ATM and avail of digital services like net banking, mobile banking, SMS alerts, free passbooks, regular e-statements, etc.
- YES Bank
Although the bank offers different types of savings bank accounts, Smart Salary Advantage, Smart Salary Exclusive, and Smart Salary Platinum are their free savings account variations. Besides high-interest rates, account holders get access to mobile and net banking facilities, free NEFT and RTGS services, e-statements, free demand draft issues, SMS alerts, bill payments, and a high daily cash withdrawal limit.
- ICICI Bank
ICICI is a prominent bank in India offering robust security features with their savings accounts. Their Basic Savings Bank Deposit Account (BSBDA) is a zero-balance account that allows individuals to save up consistently and earn high interest rates. Apart from no minimum balance requirement and no initial deposit, the account offers single and joint holding, a free RuPay card, internet banking, mobile banking, free cash deposits, and other facilities.
Zero-balance savings accounts are quite popular among students and low-wage earners. However, do bear in mind that not all banks offer competitive interest rates and plenty of features with such an account. Therefore, check the bank’s interest rates and basic services before opening a free savings account with zero balance requirements. Proper research will help you find a bank account that suits your needs and offers maximum benefits.