Smart Things to Know about Zero Balance Savings Account

Today, opening an account has become a quick, easy, and transparent process. It involves basic documentation. Banks and financial institutions offer a number of accounts to individuals.

Depending on personal or business requirements, an account should be opened. Every applicant should have complete knowledge about the type of account and the terms and conditions associated with it. Of late, a zero balance savings account has become quite popular. Let’s get a glimpse of a few smart facts about this type of account.

What is a zero balance savings account?

A zero balance savings account is an account where you are allowed to maintain zero balance and there will be no penalties levied for the same. Unlike other accounts, there is no requirement to maintain a minimum balance in this account.

 

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What are the eligibility criteria?

The eligibility criteria for opening such an account vary from bank to bank.

Where can the account be opened?

The account can be opened at any branch of the bank.

What are the services available against this account?

Banks offer various services like deposit and withdrawal of cash, deposit or collection of the cheque at bank branches, withdrawal of money from ATMs, and credit of money through electronic payment channels. In addition, banks also provide free-of-cost debit cards and there are no annual fees associated with it. Customers can avail of the facility of mobile banking on their accounts as well.

Is there any restriction on withdrawals from this account?

Although there are no restrictions on the number of transactions that can be carried out in the account, there is an upper limit on the number of withdrawals from RTGS, NEFT, ATMs, and standing instructions, among others. Banks have restricted these to four a month. However, there are no restrictions on the number of deposits in a month.

Is an overdraft facility available with this account?

If the account is opened through Pradhan Mantri Jan Dhan Yojana, individuals will be eligible for an overdraft facility up to an amount of INR 5,000 after a period of six months of activity in the account.

What are the conditions to get a chequebook?

If the account has neither a minimum balance nor an initial deposit, a chequebook will not be issued. If an individual wishes to acquire one, he/she will have to fulfill the minimum balance requirements.

Are minors allowed to open an account?

Individuals above the age of ten can open an account. INR 20 will be charged for opening the account.

Once you know all the details of this account, open one for yourself immediately.

Amanda R. Dubose