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Zero Balance Savings Account

A zero balance saving account is a savings account type wherein you do not need to maintain a minimum balance, i.e. the balance in your savings account can go down to Rs. 0 without attracting any penalties. Below are some of the best zero balance account in India 2022 for Indian Citizens. 

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What is Zero Balance Savings Account?

A Savings Account is a facility provided by the banks wherein you can deposit your surplus funds and can withdraw when in need. You will be earning interest on the amount deposited and so this is the best way to invest your surplus funds which otherwise would be idle or spent unnecessarily. A Savings Account is advantageous since it does not have a maturity date and you will not be blocking your funds. You will have to maintain a minimum balance in the account as stipulated by the bank, failing which, a penalty will be levied.

Zero Balance Savings Account or the No-frill account which was a part of the financial inclusion plan that was introduced to inculcate the saving habit in a majority of the population. This account can be opened with no restrictions on the minimum balance to be maintained. Despite this, the account will be provided with all the facilities that are offered to a normal Savings Account.

Best Zero Balance Savings Account for Indian Citizens

If you want to open a savings account in India and do not want to be stuck in the complications of maintaining a minimum balance, opt for a zero balance account. For a 0 balance bank account, you do not have to maintain a minimum balance. The minimum average balance is calculated by the bank on the average balance available in the account at the end of the day of every month and divided by the total number of days that come in the month. If you wish to open a zero balance account in India, you can contact any of the below mentioned zero balance account banks.

Features of a Zero Balance Savings Account

The following are the features of a Zero Balance Savings Account:

  • As the name indicates, the account can be opened with zero balance. There is no stipulation of minimum balance for this account.
  • A free passbook will be issued to the account holder on opening the zero- balance account. This feature is similar to that of the normal Savings Account.
  • You can make payment of utility bills from these accounts through internet banking facility
  • A free ATM/Debit Card will be issued and you will be able to access the account through ATM of any bank.
  • Cash and cheque deposits can be made to this account through any branch of the bank
  • You can use the ATM/Debit card issued to Zero Balance accounts to make online payments. The card operates on electronic payment gateway such as Rupay through which online payments are easy and convenient.
  • Some banks offer safe deposit locker facilities for zero balance accounts

Additional Info:  Check credit score

Top Banks Offering Zero Balance Savings Account

The key features of the top banks zero balance account are mentioned below:

SBI Zero Balance Account

  • Applicants are required to submit basic KYC documents for this 0 balance account opening.
  • A free Basic RuPay ATM-cum-debit card is provided.
  • Up to 4 free cash withdrawals in a month from SBI ATMs and other Bank's ATMs.
  • No charges on activation of inoperative accounts and account closure.

HDFC Zero Balance Account

  • Free RuPay debit card/international debit card is provided.
  • Free cash & cheque deposits at branches & ATMs.
  • Free lifetime BillPay, InstaQuery facility and email statements.
  • Fund transfers facility through NEFT & RTGS.
  • IVR based phone banking.
  • Free 4 cash withdrawals in a month through any mode.

Axis Zero Balance Account

  • It is one of the best zero balance account in India.
  • Free RuPay debit card provided.
  • Daily cash deposit limit of up to Rs. 10,000.
  • Free 4 transactions at ATMS of own and other banks every month.

Kotak Mahindra Zero Balance Account(Kotak 811)

  • Get up to 3.5% p.a. rate of interest on this no minimum balance account.
  • You can use mStore for online shopping.
  • Fund transfers via NEFT and RTGS.
  • Instant virtual debit cards for free for online shopping.
  • Scan and pay option.

IDFC Zero Balance Account

  • Internet & mobile banking available with this zero balance bank account.
  • Free cheque book & passbook.
  • Free debit card provided.

Indusind Zero Balance Account

  • Indian citizens aged above 18 years are eligible for this no minimum balance savings account.
  • Up to 6% p.a. rate of interest.
  • Easy WhatsApp banking services.
  • Free debit card, passbook, & cheque book provided.
  • Zero balance account opening can be done online.
  • Free 5 transactions every month.
  • Free fund transfers via NEFT & RTGS.
  • It is one of the best bank for zero balance account.

Standard Chartered Zero Balance Account

  • Free international debit card and free cheque book are provided.
  • Withdraw cash any number of times for free from any bank’s ATM.
  • Opt for online bank account opening with zero balance.
  • Discounts on locker facility.
  • It is one of the best zero balance account in India 2022.

RBL Zero Balance Account

  • Free visual debit card.
  • Fund transfer through UPI, IMPS, RTGS, and NEFT.
  • Customers can invest in fixed deposits.
  • Up to Rs. 1 Lakh deposit limit in this best zero balance saving account.
  • Customers have to submit signature after 1 year to continue using the account.

Eligibility to Open a Zero Balance Account

You are eligible to open a Zero Balance Account if:

  • You are a resident individual and have complete KYC. That is, you have
    • Photo ID proof as per bank's acceptable list of documents
    • Address Proof as per bank's acceptable list of documents
  • Resident individuals and HUF can open the account
  • Minors above 10 years can open self-operated accounts

Points to Remember While Maintaining a Zero Balance Account

The following points should be remembered while maintaining a zero- balance account:

  • The balance in the account should not exceed 50,000 at any point
  • The maximum limit for online transactions is stipulated at 1 Lakh
  • Four free withdrawals allowed in a month through all channels including ATM withdrawals. If withdrawals go beyond the stipulated numbers, the zero balance account will be converted to a normal savings account. Some banks simply charge for the withdrawals exceeding the maximum limit.
  • The customer holding a zero balance account should not have any other savings account. If in case they are holding any other savings account, the same should be closed within 30 days of opening the zero balance account.

Difference between Regular Savings Account and Zero Balance Savings Account

The following are the differences between Regular Savings Account and Zero Balance Account:

Regular Savings AccountZero Balance Account
  • Full KYC is required to open the account
  • Minimum balance is required to be maintained
  • Annual charges collected for ATM/Debit Card
  • Useful for day to day transactions
  • No limit on deposits to the account
  • No cap on withdrawals
  • A higher number of free ATM withdrawals
  • The Account can be opened at any branch of the bank
  • Only one proof can be submitted to open the account
  • No minimum balance is required
  • ATM/Debit card issued free of cost
  • Can be used occasionally
  • A maximum of 1 Lakh can be deposited in a financial year
  • Can withdraw only up to 10,000 in a month
  • A limited number of free ATM transactions
  • Only a limited number of branches offer this account

How to Open a Zero Balance Account?

You can open a Zero Balance Account by visiting the nearest branch and submitting KYC documents.

Alternatively, you can open the Digital Savings Account online on your smartphone by accessing the app of the respective bank.

Documents Required to Open Zero Balance Account

  • Duly filled application for opening Savings Account
  • Proof of Residential Address like Utility Bills of at least 3 months, Driving Licence, Passport, Property Tax Receipt (any one).
  • Photo ID Proof like PAN Card, Voter' ID, Driving Licence (any one)
  • Aadhaar Card copy
  • Either a Photo ID issued to permanent employees of Public/Private Sector Banks, Central/State Government Organisations, Scheduled Departments/Statutory Regulatory Authorities and, Scheduled Commercial Banks or a letter issued by a gazetted officer with a duly attested photograph of the applicant is a valid document accepted for opening a Zero Balance Account.
  • If KYC documents as per bank's acceptable list of documents are not available, the account can be opened with an introduction by a customer who has completed the KYC norms.

Additional Info: Also check UAN Member Portal

Zero Balance Savings Account FAQs

What is a zero balance account?

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Zero Balance Savings Account, also known as the No-frill account is a savings account that can be opened with no restrictions on the minimum balance to be maintained. Despite this, the account will be provided with all the facilities that are offered to a normal Savings Account.

What is the rate of interest offered on zero-balance accounts?

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The rate of interest is similar to the rate of interest applicable to a regular savings account.

What are the limitations in the zero-balance account?

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The limitations of the zero balance account as mentioned below:

  • Balance in the account at any point in time should not exceed 50,000
  • Only four free withdrawals are allowed in a month through all channels including ATM transactions.
  • A person holding a zero balance account should not have any other kind of savings account
  • The maximum limit for online transactions is 1,00,000

Who can open a zero-balance account?

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  • Resident individuals and HUF can open a zero balance account
  • Minors above 10 years can open a self-operated account
  • Individuals who are not able to comply with KYC norms can open the account with an introduction from a customer of the bank who has fulfilled the KYC norms.

Which bank is best for a 0 balance account?

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If you are wondering which bank is best for zero balance account, the answer is Kotak Mahindra, HDFC, Axis, and SBI are some of the best bank to open account in india with zero balance.

What are the disadvantages of zero balance accounts?

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  • Only Indian citizens can open a zero-balance savings account. It can not be opened by NRIs and PIOs.
  • Online zero balance accounts usually have an initial balance limit of Rs. 1 Lakh. This restriction can be waived off after completing the KYC process. 
  • Foreign contributions cannot be done in zero balance accounts.

Which bank has the lowest minimum balance for a savings account?

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Axis Bank, HDFC Bank, SBI, IDFC First, Indusind, RBL, Kotak Mahindra, and Standard Chartered are some of the banks that require minimum balance in savings account. You have to maintain zero balance in these 0 balance saving accounts. 

Is HDFC zero balance account available?

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Yes HDFC Bank provides the facility of the best zero balance account.

How to open zero balance account?

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You can either visit the bank branch to apply for a 0 balance account or apply through the bank’s app for zero balance account opening online.