Do you wonder what happens if your bank account balance is zero? Banks offer zero-balance savings accounts for people like you who don’t want to get into the hassle of maintaining a certain balance in the savings account. As the name suggests, these accounts give you the advantage of spending the entire amount in your account.
However, a limited category of customers gets this facility, such as salary account holders and people having an account in Pradhan Mantra Jan DhanYojna.
In recent times, zero balance digital savings account also gained popularity. You can instantly open these accounts online. Apart from providing the facility of zero balance, digital savings accounts also carry other useful features such as virtual debit cards and the freedom to operate your bank account via an app on your phone.
7 Things to Know About Zero Balance Savings Account
It’s good if you are aware of the following benefits and features of zero-balance accounts before opening a zero-balance saving account.
- The Obvious
It’s a zero-balance savings account! It means you won’t be penalized if your account balance is zero. It is not the case with all bank accounts.
Generally, banks charge a penalty if you don’t maintain a certain minimum balance in your account. But you can use your zero balance account till the last penny. These accounts are ideal for salaried people with limited income and students.
- Number of Account Holders & Interest Rate
You can operate your zero balance account individually or jointly. There is no limitation on that like the regular savings account. You can open all kinds of joint zero balance accounts, be it “either or survivor”, “former or survivor”, and “anyone or survivor”.
Also, the interest rate you get on a zero balance savings account is similar to a regular bank account. The bank doesn’t reduce the interest rate because they are giving you added facility of zero balance.
- Availability of Mobile and Internet Banking Facility
For the ever-busy millennials who often don’t have time to go to a bank branch or an ATM, zero-balance savings accounts offer internet banking. You can do almost all transactions from your office or home via mobile.
The pandemic has also altered the way you used to move. The more tasks you can do without coming into other people’s contact, the better. So internet banking facility of zero balance account protects your health as you can do banking from your fingertips using UPI apps and internet banking without coming into anyone’s contact.
- Easy & Simple Process of Account Opening
Do you think opening a zero-balance savings account will be a task? Let’s give you some good news, that’s not the case. Banks don’t ask you for extra formalities or documents only because the account you are applying for is zero balance. Opening these accounts is as simple as opening any other type of bank account.
The conventional way of opening an account is to visit the branch and apply for it. Or else you can apply for the account online as well. You only need to fill out the required form and upload the soft copies of mandatory documents to open a zero balance account online instantly.
- Your Account Can be Declared Dormant
The standard practice is to consider the savings account dormant after a year or two of no transaction in the account. The duration may vary from bank to bank. But 2 years is the most common period to consider an account dormant. Zero balance savings accounts are not acceptations.
The bank can declare your account dormant after a specific duration of your account being ideal. These ideal accounts are segregated and maintained in separate ledgers.
- The Facility of Cheque Book & ATM Card
You might’ve guessed that you get all the usual facilities with a zero-balance savings account. Therefore, you also get transaction-based facilities like a checkbook and ATM card with a zero balance account.
Most debit cards or ATMs can be used globally without any additional fees. The first checkbook is free, and there are standard charges for reissuing it. However, with the facility of internet banking, you may not need it much.
With all these added benefits, no wonder zero-balance savings accounts are among the favorite type of accounts. They give you freedom from checking your account balance to avoid penalties. And it doesn’t deprive you of any banking facility. If this isn’t a win-win, what is?