Open Saving account with no minimum balance
Forget penalties for not maintaining a minimum balance in a savings account, open a Zero Balance Saving account in your bank, benefits and limitations.
What is a zero balance saving account?
A zero balance account (ZBA) is an account in which a balance of Rs. 0 is maintained. Almost every bank in India provides the facility to open a Zero balance saving account. There are many purposes to open this type of account. Some of them are Salary account, Student account, pensioner accounts, Subsidy accounts etc. Banks apply some limitation on normal zero balance accounts. We will read all about Zero balance account in this article.
To start banking in the early days of our life is an exciting thing. Mostly we think about opening a savings bank account when it is required at the time of admission in school, college or to avail any subsidy from government, scholarship, to get salary credited etc. There are several banks, mostly government banks, which open savings bank accounts where we don’t have to maintain any balance or there are no charges on not maintaining balance.
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What are the benefits and restrictions of zero balance saving bank accounts!
There are many benefits of opening a zero balance savings account and some restrictions.
Benefits of this account:
- No ATM/debit card charges (Read How to withdraw money from ATM without Debit Card)
- No annual maintenance charges
- Free net banking.
- Complimentary passbook and Cheque book
- Special privileges and offers for salary account holders based on the category of company/institution.
- Maintain No minimum balance.
Restrictions on Zero Balance saving bank account:
- Limited cash transactions except salary account
- Maximum balance limit except salary account
- Basic Debit Card and limited cheque books (Read How to withdraw money from ATM without Debit Card)
- Only for Indian residents
- One can not do Foreign contributions to zero balance accounts.
- Basic savings account holders can withdraw a maximum of four times in a month, including cash withdrawal through Branch, ATM, NEFT, RTGS, IMPS, etc.
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Types of zero balance bank accounts in India:
There are several types of zero balance saving bank accounts which can be opened for specific purposes. Some of which are as following-
- Basic Savings Bank Deposit (BSBD) account
- Salary accounts
- Pradhan Mantri Jan Dhan Yojana account
- Student accounts (Read 5 facilities only for students available at banks)
- Pension Accounts
- Minor subsidy accounts (Read about Government loan Schemes with subsidy )
What are the documents required to open a zero balance account?
You will require a few documents to open zero balance bank account-
- Identity Proof
- Address Proof
- Recent Photographs
- Purpose of opening account and related document
How to remove restrictions from zero balance account and upgrade to normal account?
Since some restrictions are applicable to zero balance accounts or there is a need to upgrade the account to a regular savings bank account without changing account number, there is always a provision for this. Only thing you need to do is, carry your Recent Photograph, Identity proof and address proof along with an application to upgrade the account and submit it to the bank. The process may take a day to complete.
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To conclude, To start banking early or get your first salary/ Pension, a zero balance account can be very helpful. There are various schemes started by the Government of India like free insurance and monetary subsidy which can be availed in these accounts. In addition to that, Whenever an account holder desires to remove the restrictions on the account, he has to simply submit an application to the bank. Also, account holders can close the account any time by simply submitting an application to the concerned bank.
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