A savings account is an instrument that allows you to park your funds and earn some interest on it. Apart from a fixed interest rate, a savings account also offers you high levels of liquidity and security.
Savings accounts require you to maintain a minimum average balance. Note that the bank will levy a penalty if you fail to maintain the same in your account. However, as opposed to traditional ways, banks have now started offering zero-balance savings accounts.
Read on to know more about the process of online savings account opening with zero balance and some of its features.
A zero-balance savings account is a type of savings account that has no minimum balance requirement. In other words, you will not be charged any penalty if you have zero balance in this account.
In addition to this, banks continue to provide your account with usual services even if the balance is nil. However, they only allow a limited number of transactions per month, which are usually four.
Banks provide this facility to encourage the habit of saving among customers. You can open a zero-balance savings account either individually or jointly with another person.
Most banks have digital onboarding processes in place and allow their customers to apply for most services from the comfort of their online. Here are the steps to open an online savings account opening with a zero balance:
Step 1: Visit the official website of the financial institution where you want to open a zero-balance savings account
Step 2: Explore the facilities offered by the bank on zero balance savings accounts online and fill in the application form
Step 3: Attach the copies of required documents, like an Aadhaar card or PAN card, and submit the application form
Step 4: Complete your KYC process through video KYC to get your account number and a customer ID
Step 5: Log in with your credentials on the bank portal, create a password and transfer funds digitally
A zero-balance savings account not only frees you from the burden of maintaining the minimum balance in your account. In addition to this, it also grants access to formal financial services, which is very important.
To open savings accounts with leading financial institutions in India, check out offerings on Bajaj Markets. The process is quick, simple, and you can have your account opened in minutes.
You can open a zero-balance savings account online through the official website of the bank. All you have to do is select the zero-balance savings account facility and fill out the application form with proper documentation. Your account will be opened once your KYC is complete.
If you want to convert your basic savings account into a zero-balance savings account, you will have to visit your bank branch. Ask if they offer such a facility and fill out a form to convert your account type.
As a zero-balance savings account does not charge any fees on a nil balance, it eliminates the fear of getting penalised if your savings drop. In addition to this, the process for online savings account opening with a zero balance is online, making it quite simple and convenient.
BSBDA, or Basic Savings Bank Deposit Account, is similar to a zero-balance savings account as they do not require customers to maintain a minimum balance. Following an RBI mandate, all banks now offer a BSBDA facility.
However, some banks also offer zero-balance facilities on savings accounts separately.