A zero balance saving account does not require the maintenance of a minimum balance by its holders. Under this account, the interest rates are calculated based on minimum account balance and are usually credited on a half-yearly or quarterly basis. Many banks provide minimal interest rates of 3% to 7%. However, you have to maintain an average balance over a particular period which varies from bank to bank.
It can prove to be one of the most important financial products. The zero balance saving account is convenient for people who face difficulty maintaining the minimum average balance for their saving accounts.
These accounts can be used to deposit government subsidies. However, the holder must have appropriately certified KYC documents to open a zero balance saving account in his name. Although for the people who do not have KYC documents, a small basic savings account can be opened.
These days zero balance saving accounts can be opened through online procedures. However, the person should have proper identity documents like Pan Card and adhaar card, which should be valid. Banks offer these types of accounts to customers of a specific category like those who get monthly salaries or wages. These services were started under a government scheme for financial improvement, known as Pradhan Mantri Jan Dhan Yojana (PMJDY).
In a zero balance saving account for an individual, the cash deposit saving amount is rupees 1 lakh. The bank must send these details to the income tax department, which sends the income tax notice required for such cash transactions. Due to many criminal acts, the bank has to inform the government on every big or small transaction.
The limit might increase if you have two or multiple saving accounts in a particular bank. Also, a person can deposit an amount of Rs 25000 on an everyday basis. Also, charges are incurred when a person can reach the limit that can vary from bank to bank.
You should keep the below points in your mind before opening a saving account of your own.
Above were some of the basic things required before opening a zero balance saving account of your own. Here are some of the advantages a person will get by opening a zero balance saving account.
Everyone knows the importance of saving money and how it can help you with your problems in the future. These can prove to be very helpful in your bad days, which is why many people are interested in opening a savings account of their own. For people who cannot maintain a limited balance, the zero balance saving account can be advantageous to them in the following ways:
A zero balance saving account can be the best option for those who cannot maintain the minimum balance required by the saving accounts. Opening this account does not require maintenance of a minimum balance. The holders can pitch away from the burden of maintaining an average monthly balance.
With zero-balance bank accounts, one can enjoy the benefits of internet banking. Internet banking is an advantageous method of digitalized payment through which you can pay bills, recharge your phones and make any payment supported by the receiver. Almost all payments can be made through the internet if you access smartphones by installing the appropriate apps. It provides you with the facility of managing your account from your homes, offices or any place. The only thing you require is access to the internet.
The opening of a zero balance saving account will provide the holder with many free and extra advantages. The bank will give the holder a free passbook, free cash, and the availability of cheque deposits valid at any branch. However, the account holder may have to deposit a nominal amount of money for the issue of cheque books. Account-holders who get a monthly salary are also provided with some extra privileges or benefits, varying from bank to bank.
The basic saving account holders are allowed a cash withdrawal four times a month. But by opening a zero balance saving account through the online procedure, you can increase your cash withdrawal capacity to 5 times a month. These accounts can prove efficient in receiving direct subsidies from the government imposed on the LPG's and educational subsidies.
With opening a zero balance saving account, you can not only save money for your future use but can also get an additional amount of interest to your saved money. However, this advantage is only provided by few reputed banks. Account-holders can get an attractive amount of interest rates and give a boost to their savings.
The best advantage of opening a zero balance saving account is that the account holder gets free insurance, including any accident. The account holder can reach a maximum cover-up of Rs 1 lakh.
The opening of a zero balance saving account does not require the incur of any expense. Anyone can open this account free of cost, and no account closure charges are levied either.
We are sure that the above features and advantages of the Zero Balance saving account are enough to acknowledge you of the benefits provided by the banks in which these accounts are opened.
You can open a saving account of your own, but it has certain drawbacks like it has a limited amount of transactions and provides you with minimal investing options. But you can see the upper hand of its advantages over a few disadvantages. So you can, without any doubt, open a zero balance saving account if you are a salaried or non-salaried person.
But before opening a saving account of your own, you need to make sure that you fulfil all the requirements to be eligible for opening this account.
The government provides the zero balance saving account for the benefit of the people to save their money along with an attractive amount of interest. But if there are no customer-initiated transactions for a particular period in the account, it may become dormant. This means that the account holder can no longer enjoy the free and extra facilities provided by the bank like transactions through the ATM, use of debit cards, access to internet banking facilities and few others. To continuously enjoy the benefits of the zero balance saving account, you need to activate it again and be regular with the cash transactions for the specified period.
So if you are a person who is unable to maintain the minimum balance required to open a basic saving account, the best option for you will be a zero balance saving account. Whether you are salaried or non-salaried, you are free to open a zero balance saving account without any incurred charges.
This will help you get rid of maintaining the monthly balance required by the bank. You can enjoy all the extra features like the ATM, chequebook facilities, internet facilities and all others. The only thing that is required to continue with these features is the daily interaction with your account. For enjoying all of these benefits you need to open zero balance saving account in a bank which supports all of these features and provides you with all the extra benefits. This account is generally made for the poor sections of the society so that they can save their bucks with good interest rates for a promising future.
Some people might not have the time of managing their accounts daily. This can make their account dormant, and they can’t enjoy the facilities provided by the bank. To manage your accounts, you can sign-up with an impressive managing tool that lets you manage your wealth hassle-free and let you enjoy a flourishing future.