What Is A Zero Balance Savings Account? All you need to know

A Savings Account is a deposit account facility provided by the bank wherein you can deposit your savings. Usually, banks offer a Savings Account provided that you maintain a minimum balance in the account. Else, you will be liable to pay a maintenance fee. However, certain Savings Accounts don’t mandate a minimum balance; they are called zero-balance Savings Accounts. The idea is simple - you can open a Savings Account, but you don’t have to maintain a minimum balance in it.

No Minimum Balance

As the name of the account implies, this is a zero-balance account. Therefore, you don’t have to maintain a minimum balance. Consequently, there is no penalty in the case of zero balance. This is the main allure for customers when opening this type of account.

Easy Transaction

You can make your payments through this account via various NetBanking facilities. You can even pay for utility expenses, such as electricity, phone, and water, through this account.

MobileBanking and NetBanking

You can check your bank statements and send and receive money through NetBanking facilities. All these transactions are possible with just a few mouse clicks on your computer or a few finger taps on your smartphone.

A zero-balance savings account allows for hassle-free savings. But certain drawbacks may affect your banking experience:

Restricted transactions

Zero-balance accounts have a limit on the number of transactions you can make per month. Usually, banks allow only four monthly withdrawals. If you make more than the permitted withdrawals, the bank will convert your zero-balance account into a regular Savings Account. Some banks may even charge you a nominal fee for these extra transactions.

Limited number of savings account

According to the new guidelines by the Reserve Bank of India (RBI), you can have only one Zero Balance Account in one bank. Furthermore, if you have a Zero-Balance Savings Account in one bank, you cannot hold any other Savings Account of other capacity in the same bank. While applying for a Zero-Balance Savings Account, you must declare to the bank that you do not hold a Zero-Balance Account in any other bank.

While having its advantages, a Zero-Balance Savings Account could affect your financial experience, especially during any unexpected financial emergencies requiring multiple withdrawals. Therefore, having a minimum balance Savings Account can prove to be more beneficial.

By opening an HDFC Bank minimum balance Savings Account, you can enjoy lucrative offers and deals and become eligible for easy loan access and instant fund transfer. You can even access the Sweep facility, locker facility, international Debit Cards, automated bill payments, discount benefits, and more. Making investments is easy, too! And most importantly, you can avoid penalties for non-maintenance of AMB (average monthly balance). 

HDFC Bank offers a variety of Savings Accounts to suit all your needs. Whether you are a salaried employee, homemaker, student, business owner, or a working professional, HDFC Bank is your perfect banking partner. 

Get an Online Saving Account Opening in the secure and simple Video KYC process of an HDFC Bank.

Know more about Zero Balance Account Savings Account here.

*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.