A savings account is an integral part of everyone’s finances. There are different types of savings account you can select. Zero balance savings account is a type of savings account without any minimum balance commitment. Typically, you need to maintain a Monthly Average Balance (MAB) in a regular savings account.
There are different forms of zero balance savings account. Salary Account, bank account opened through Pradhan Mantri Jan DhanYojana (PMJDY) and online zero balance saving account are zero balance savings account.
As the features of these accounts can differ from one another, in this article, we will stick to zero balance savings account that can be opened online such as Kotak 811 digital bank account.
5 Things to Know About Online Zero Balance Savings Account
Regular savings accounts have a monthly average balance requirement that account holders need to maintain to avoid paying any penalty. However, there are no minimum balance commitments in zero balance savings account. So, you don’t have to pay any penalty and can utilise your money to the fullest.
You can earn interest rates on your zero balance savings account deposits. This means that you can gain interest income on your deposits. So, keeping money on your savings account can help you earn interest with no active involvement. Different banks offer different interest rates. Hence, it is important to compare the interest rates of different zero balance saving account online.
Anywhere banking facilities
Banks offer anywhere banking facilities such as internet banking, mobile banking, phone banking to their zero balance account holders. This means that you can access your account and carry out banking transactions from any part of the world at any time.
Debit Card and Cheque Books
As a zero-balance account customer, you can also avail the benefits of debit card and chequebook. Depending on the bank, you can have a virtual debit card or apply for a physical debit card. You might also need to apply for a cheque book through net banking or mobile banking.
In case of Kotak 811 digital bank account, you receive a free virtual debit that you can use to carry out online transactions and pay bills or apply for a physical debit card at nominal cost. Also, you can apply for a cheque book.
Zero balance savings accounts can be opened instantly online or through Video-based KYC process. If you have opened through account instantly through the Aadhaar OTP verification process, in that case, you need to complete your full KYC process within 12 months. Your account will be closed if you don’t complete the full KYC within 12 months from account opening.
These were the five things that you need to know about zero balance savings account.