What Is A Zero Balance Account 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 with the stipulation that you maintain a minimum balance in the account. Else, you will be liable to pay a maintenance fee. However, certain types of Savings Accounts don’t mandate a minimum balance, they are called zero-balance Savings Account. The idea is simple - you can open a Savings Account, but you don’t have to maintain a minimum balance in it.
Features of a zero-balance Savings Account:
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 utilities such as electricity, phone, and water through this account.
MobileBanking and NetBanking
You can check your bank statements, send and receive money through NetBanking facilities. And you can make it all happen from a computer or your phone.
Should you open a zero-balance Savings Account?
A zero-balance Saving Account allows for hassle-free savings. But there are certain drawbacks that 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 do make more than the permitted number of 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 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 are required to furnish a declaration to the bank stating that you do not hold a Zero-Balance Account in any other bank.
While having its own advantages, a Zero-Balance Savings Account could possibly affect your financial experience, especially during any unexpected financial emergencies that require 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, become eligible for easy loan access and instant fund transfer*. You can even get access to 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 on non-maintenance of AMB (average monthly balance).
HDFC Bank offers a variety ofSavings Accountsto suit all your needs. Whether you are a salaried employee, homemaker, student, business owner, or a working professional – HDFC Bank is the perfect banking partner for you.
Get Online Saving Account Openingin secure and simple Video Kyc process of an HDFC Bank.
Know more aboutZero Balance Account Savings Accounthere.
*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 circ*mstances.
