A zero-balance bank account in India is one of the banking products to improve the banking experience for customers. A zero-balance savings account allows holders to administer the account with a zero balance.
It is a type of savings account where you do not need to maintain the minimum amount balance. Let’s understand if a zero-balance bank account is your best choice.
What is a zero-balance bank account?
A non-maintenance charge is levied when the account balance does not meet the minimum average balance requirements. However, in a zero-balance savings account, the Minimum quarterly average balance policy is not applicable; therefore, no minimum balance is required.
What is the eligibility for opening a 0 balance account?
Anyone with legitimate Know Your Customer (KYC) documentation can go ahead with the kotak instant account process and be eligible for the same.
It can be opened jointly or individually, with either party or a sole survivor. However, the chequebook facility may be unavailable for certain banks.
The interest rate is identical to that of traditional savings accounts. Currently, the annual interest rate offered by numerous banks on a zero-balance bank account in India is between 2.5 to 3.25 per cent.
How can you benefit from a zero-balance bank account in India?
1) Cost-Effective Alternative
Individual or small business proprietors are not required to maintain a monthly average balance in a zero-balance account. Therefore, you are not required to maintain this account with a substantial deposit. In addition, there is no penalty for maintaining a zero balance. It is a cost-effective solution for small business proprietors because it provides free Internet banking and ATM withdrawals.
2) Easier monitoring and record-keeping
You may open a zero-balance account for personal and professional purposes, including short-term payroll, payment of commercial utility expenses, travel reimbursement, and office supplies.
3) Saves Time and Simplifies the Transaction Process
With a zero-balance account, you can conduct transactions via mobile or Internet banking at any time from any location. The ability to deposit, transfer, and withdraw funds without incurring additional fees will facilitate the seamless operation of your business.
You could also automate transferring funds or account balances, saving time and reducing the likelihood of errors and delays.
4) Additional Advantages
A zero-balance account can provide numerous additional advantages. Many zero-balance savings account features an attractive interest rate, cashback on debit card purchases, 24/7 customer service, and the ability to automate recurring payments.
5) Simple to Open and Use
A zero-balance account is astonishingly simple to open, despite its numerous helpful features and benefits for individuals and small business proprietors.
It is one of the best benefits of such accounts. Anyone eligible to open a zero-balance account can instantly open this account online using Aadhaar and PAN card; the application procedure is completely paperless and streamlined.
What makes a zero-balance bank account ideal for you?
You can reap numerous benefits as mentioned above, but below are some additional things to consider that make a zero-balance account ideal for anyone, including you:
● Any Indian citizen over 18 may establish this account with no minimum balance requirement.
● It offers unrestricted ATM withdrawals and complimentary Internet and mobile banking access.
● Transfer money without cost using NEFT, IMPS, and RTGS.
● Use WhatsApp banking services and a complimentary passbook, chequebook, and debit card.
● Receive cashback on multiple online shopping platforms.
● Any Indian resident or Hindu Undivided Family (HUF) may open such an account.
Zero balance bank account in India offers significantly more flexibility than a traditional savings account that requires a minimum balance to be maintained. As a zero-balance account, it contributes to a person’s financial inclusion. It offers the same banking services as a standard savings account, such as Internet banking, Mobile Banking, cards, customer support, etc.