Savings accounts are the most traditional and popular way to access money at all times. These accounts allow you to withdraw funds without any restrictions. To add more customer benefits, some banks also provide savings account with zero balance. The catch here is that you do not have to maintain a minimum account balance every month. Thus, if you find it challenging to maintain the average minimum balance requirements or want to use the account more flexibly, zero-balance savings accounts are a great choice!
The good news is that you can also open zero-balance accounts for free! Here’s the know-how!
A step-by-step guide to opening a zero-balance savings account online
Before knowing the zero balance savings account procedures, you must know the perks of opening accounts online:
- People do not have to be present physically in the branch and stand in long queues.
- Since the process takes only a few minutes, you can save a lot of time.
- Several banks allow opening these accounts free of cost, ensuring more savings.
Following are the simple steps for free bank account opening online:
- Open your browser and
- a bank offering free savings accounts with zero balance.
- Visit the ‘Savings Accounts’ section of the bank’s website and choose the type of savings account you want to open. Here, you need to choose a ‘zero-balance savings account’.
- Read the features and benefits of the same.
- Enter your details and click on the ‘Open Now’ button.
- Complete the identity verification with relevant documents (to be uploaded online).
- Tick the check box for terms and conditions after reading and understanding them.
- Now complete the video KYC formalities and further verification by Aadhaar OTP authentication and PAN. Also, you may need to complete the KYC by visiting the nearest branch within specified days.
- Once the verification is done, you will receive the details of your savings account with zero balance, containing the account number and customer ID, etc.
Now, you can start using your zero-balance account and leverage its unique features.
Features and benefits of zero balance savings account
Following are the reasons you should consider opening a Zero Balance Savings Account:
No minimum account balance
As the name suggests, for opening a savings account with zero balances, you do not have to maintain the minimum average balance in the account. It means you can use even the last penny and do not have to bear any penalty.
High-interest
These accounts come with lucrative savings account interest rates, ensuring faster savings growth. Therefore, this is an excellent option for those who have just started contributing towards future finances. It is advised to compare different financial institutions and choose one offering the best interest rate.
24/7 access to the account
Besides the online savings account opening facility, you can check your account details and make transactions anytime, anywhere, through the app or the website.
Online account opening
Several financial institutions allow you to open a zero-balance account online. You do not have to undergo the hassles of visiting the branch physically. The Aadhaar OTP authentication and video KYC make the process simple and secure.
Free debit and credit card
The account holders get a free virtual debit card and can use it on different online platforms. You can also be eligible for earning attractive cashback offers and rewards like offers at premium restaurants, free movie tickets, etc., on making transactions using it. Likewise, based on eligibility, you can apply for a free credit card by opening an FD account. In any case, they do not have to maintain any minimum balance in the accounts.
Dedicated app
You can access your zero-balance savings account through the app and perform several tasks like checking your account balance, mobile recharge, bill payments, scan & pay, etc.
Ease of transactions
You do not have to pay additional charges for using payment options like UPI, NEFT, IMPS, etc. It makes transactions easier and saves money.
Eligibility criteria
If you want to enjoy the features mentioned above, you should meet the following eligibility criteria. The applicant must be:
- A resident of India
- Aged between 18 and 60 years
- Have a permanent residential address
- Have a valid PAN and Aadhaar Card
- The mobile number should the same as mentioned on the Aadhaar Card
- Not an existing or old customer of the respective bank
Documentation
One of the specialities of the zero balance savings account is that you need to submit only a few documents. It includes the following:
- Aadhaar card
- PAN card
- Passport-size photographs
- Signature
You have to upload the soft copies of these documents for online KYC. Note that the bank may ask for additional documents while processing your request for opening a zero-balance savings account.
Final words
Having a savings strategy is essential to sail through any difficult situation. However, it often becomes difficult for individuals to maintain a savings account that requires maintaining a minimum balance every month. But, you do not have to abide by such prerequisites with zero-balance savings accounts. Eventually, it promotes savings while earning interest income from the amount saved.
