Fundamentally, a best zero Balance Savings Account in India is a type where you don’t have to maintain any minimum balance. Since clearly maintaining a minimum balance is a tough task, especially if you are more of a spender than a saver, having this account helps substantially. It is one of the most difficult tasks to maintain a minimum balance in the account. A majority of banks in India keep a minimum balance limit of Rs. 5000 – Rs.10,000 per account to maintain. Such a requirement may become problematic for those of us who earn just enough to meet their requirements. 

There are numerous benefits of having a deposit with the bank. Primarily, the money that you earn and save will garner decent returns for you if you deposit at the bank. Hence, with bank deposits, you may not only earn interest but also ensure its safety. Get easy access to money, and enjoy a nil risk.

Recently in India, especially between the period 2014 to 2019, there was a major increase in the number of savings bank accounts, due to various government schemes and demonetisation. 

Top zero balance savings account

Here is the list of the top zero balance account for Indian citizens 

Which bank is best for Zero Balance Accounts?

With a Savings Account, it also allows you to perform online transactions. A debit card is issued to you when you open a savings account with a bank. This debit card enables you to withdraw money from ATMs on a go. For keeping a track on the withdrawal, deposits, etc. the bank also gives you a passbook, monthly account statement, and cheque book facility with this account. Though fixed deposit accounts also provide you good interest rate but savings bank accounts are the simplest forms of investment.

For customers in India that wish to open a savings account and do not want to go through the hassle of maintaining a minimum balance, they can opt for a zero balance savings account. As the name suggests, those opening or holding a zero-balance savings account do not have to maintain a minimum balance. For those who do not know, the minimum balance value does not mean that money has to lie idle in the account for the whole month to meet the requirement, as the minimum average balance is calculated on the average balance in the account at the end of the day of each month and divided by the total number of days in the month. That said, for customers that wish to open a zero-balance savings account, they can contact any of the below listed banks that offer the most suitable and beneficial zero-balance accounts in the country.

Some savings accounts for Indian citizens are as follows

Top Zero balance Savings Account 2023

A zero-balance savings account refers to a savings bank account that has a zero balance in it and yet not charged. It is legally known as Basic Savings Bank Deposit (BSBD) account as per the guidelines of Reserve Bank of India (RBI). The facility of some of the best zero balance accounts is provided by banks to encourage more savings among people. The savings bank account is a deposit account with a bank, usually maintained by individuals, either by self or jointly with another individual. An ideal savings bank account usually needs a minimum balance to be maintained by the account holder. But in the case of a zero balance account, despite a nil balance, the bank will still give all the usual facilities that come with a regular savings account. Best zero-balance savings accounts usually allow a limited number of transactions per month, usually around four. If the limit exceeds, then the bank will convert your zero-balance savings account into a regular savings account.

How does the zero balance savings account work?

The master account provides a centralised place to manage an organisation’s funds. Whenever funds are required in the ZBA checking account to cover a charge or transaction, they are transferred from the master account in the exact amount required. There is no need for an employee to do this manually, as the process is fully automated.

By concentrating funds in the master account, more money is available for investments, rather than having small dollar amounts idle within a variety of subaccounts. Often, the master account has additional benefits, such as a higher interest rate on balances, compared to the subaccounts. The master account is not a checking account, but rather some other, more profitable type of bank account. Thus ZBAs maximise funds available for investment and minimise the risk of overdraft fees.

Plans of Zero balance Savings Account

Some of the plans of opening a zero balance account are as follows:

1. No Minimum Balance 

Account-holders are not charged fees for maintaining a nil balance or minimum balance. Ideally, it attracts more savings bank account openings.

2. Free Benefits 

All the individual account holders are given some facilities free of cost. These include free passbook and free cash and cheque deposits at any branch.

3. Other benefits 

The holders of a zero-balance account can get access to a debit card as well as ATM. They can also choose to opt for mobile and/or net banking. Apart from these, the safe deposit locker facility is also provided. The charges collected for these facilities are nominal.

4. Allows digital payments

The account holders are given a card to make digital payments. These cards use the electronic payments gateway systems such as RuPay to make payments easily and conveniently online.

5. Debit card 

When the zero-balance savings account is opened, basic savings account consumers get a free RuPay debit card that can be used to withdraw cash and make payments. Depending on the bank, in case of online savings account, account holders get a VISA or RuPay debit card. These debit cards come with free insurance cover.

6. Cheque Books 

When opening a basic savings account, consumers get a free cheque book. However, customers of online zero balance accounts have to pay a nominal amount for cheques. One can use cheques as a bank identification document.

7. Net Banking

Zero balance account holders can avail the Internet Banking facility. Customers can then review their balance, move funds from one account to another, reload their mobiles or recharge their  DTH, pay bills, etc.

8.  Cash withdrawals 

Basic savings account holders can withdraw a maximum of four times in a month, including cash withdrawal through Branch, ATM, NEFT, RTGS, IMPS, etc.

Online zero balance account holders can withdraw cash from ATMs up to five times without any charges.   

Receive government subsidies: Accounts linked to Aadhaar can receive direct government subsidies such as LPG subsidy and scholarship. .

9.  Overdraft

 Customers can avail overdraft service after six months of opening the accounts.

Zero balance savings account policies

•  The total credit in the account should not exceed Rs.1 lacs in a given financial year.
•  The debit balance should not exceed Rs.50,000 at any point of time.
•  The account holder should submit all documents as per KYC guidelines from RBI.
•  Other terms that are specific to the bank where the account is being held.

Top Zero-Balance Savings Account  2023

Here is the list of some banks that is best for Zero balance account

Banks with Online Account Opening

When a person thinks of opening a bank account online, the most common type of account that anyone can opt, is a Savings Account. The online account opening can be easy to encourage the habit of saving exclusive deals that come along with the different variants. Online account opening is a simple and easy process that can be completed within a few steps through banks with an online account opening system. 

Digitalization is increasing day-by-day in every sphere of life including bankings. The bank with online account opening provide the access of 24*7 to the account holders via Mobile app or Netbanking. In addition, banks with online account opening provide a wide network of ATMs and branches. The account holders who have open bank accounts online can be benefited with lots of exciting offers and deals on the Debit Cards. Some banks are best for zero balance accounts who offer features like unlimited zero balance maintenance requirement or unlimited Cash withdrawal at ATMs that further adds to the appeal of a savings account. 

Zero Balance Account of Pradhan Mantri Jan Dhan Yojana (PMJDY)

The scheme of Zero Balance Account of Pradhan Mantri Jan Dhan Yojana was introduced in 2014 by the government of India. The aim of the zero balance account of Pradhan Mantri Jan Dhan Yojana is to ease banking services by making it accessible to the people. Most of the banks with online account opening in the zero balance account of Pradhan Mantri Jan Dhan Yojana provide many benefits including simplified access to all privileges and no minimum balance required in this scheme of the banks with online account opening. Some of the benefits of zero balance account of Pradhan Mantri Jan Dhan Yojana are listed below.

• Online account opening in the Zero balance account of Pradhan Mantri Jan Dhan Yojana provides zero balance savings account to the account holders.
• Banks with online account opening in zero balance account of Pradhan Mantri Jan Dhan Yojana provides hassle-free small savings account to the individuals without complete and valid government documents.
• Online account opening in zero balance account of Pradhan Mantri Jan Dhan Yojana provides insurance benefits of upto Rs. 1 lac only.
• The person who opens a bank account online in the zero balance account of Pradhan Mantri Jan Dhan Yojana can issue their ATM card instantly with mobile banking and online banking on the go.
• Banks offering facilities of online account opening in zero balance account of Pradhan Mantri Jan Dhan Yojana also provide 4 free withdrawals at other Nationalised bank ATMs.

Frequently Asked Questions (FAQs)

Q1. What are the disadvantages of a zero balance savings account?

Ans. The disadvantages of zero balance account are below:-

• Only Indians can open a zero-balance account. This account can not be opened by NRIs (Non-resident Indians) and PIOs (Persons of Indian Origin).

• Online zero balance accounts have an initial balance limit of Rs. 0
• Foreign contributions cannot be made to zero balance accounts.

Q2. What is required for a zero balance account?

Ans. You will have to submit the basic KYC documents – Identity proof and address proof. 

Q3. How much money can we keep in a zero-balance account?

Ans. All banks invariably limit the aggregate of all credit in a financial year to Rs. 1 lac in case of Zero Balance Savings Accounts. No further credit transactions are allowed until the end of the said financial year on exceeding the said limit. Similarly, credit transactions are denied if the balance goes below Rs.

Q4. Is PM Modi giving money to a zero balance savings account?

Ans. This amounts to 5.86% zero-balance savings accounts. According to PM Modi’s promise, this will amount to Rs. 58,600 crore contribution to these accounts which is not an easy task and can also be directed to other schemes such as the One-Rank-One-Position scheme.

Q5. What is the minimum balance?

Ans. For bank accounts, the minimum balance is the minimum dollar amount that a customer must have in an account to receive some service benefit, such as keeping the account open or receiving interest.

Q6. Is there a difference between the Pradhan Mantri Jan-Dhan Yojana (P.M.J.D.Y) zero-balance savings account and the one offered by bank?

Ans. While the nature of the zero-balance savings account is the same, customers subscribed to the Pradhan Mantri Jan-Dhan Yojana (P.M.J.D.Y) are eligible to opt for Government subsidies and other such benefits offered by the Government of India.

Q7. How can I access a zero-balance savings account to either check my balance, make a withdrawal and so on? Can I do this only at a bank?

Ans. No, you can access your zero-balance savings account via the internet and phone banking facilities, at an ATM and at the bank if required.

Q8. Is it possible to open a joint basic savings account?

Ans. Yes, it is possible to open a joint basic savings account. For this, the second-party has to be related to the primary account holder and both have to be present when opening the account.