How to Open Zero Balance Savings Account in 2021

Savings accounts are deposit accounts fixed at a specific rate of interest offered by a bank or other financial institution. In spite of their moderately high interest rates, these accounts are safe, reliable, and an excellent way to save up a certain amount of money if needed for short-term needs.

There are various types of savings accounts, each offering unique features such as a high transaction limit and free checks. The withdrawals are limited in savings accounts, but they generally offer exceptional flexibility, making them a perfect place to build an emergency fund. 

One such type of savings account is Zero Balance Savings Account. Zero balance savings accounts do not have a minimum balance requirement, making it a unique and more strategic option than a general savings account.

In order to meet the minimum available balance requirement, money does not need to stay stagnant for an entire month in the savings account, as the minimum average balance is evaluated on the average account balance at the end of every month, subsequently divided by the number of days in that month. 

For applicants who open a zero balance savings account, free A.T.M./Debit cards are provided for global transactions. Cheque books are provided per year at no extra cost. For a second cheque book, there is a nominal fee. The welcome kit includes a complimentary passbook that is given to all new account holders. 

Payment transfers and internet banking are available in addition to standard charges. The first few transactions are free every month; subsequent transactions incur a nominal fee. Salary account holders are entitled to special privileges and offers based on their company or institution type.

All perks aside, how do you actually open a zero-balance savings account?

The first factor to be checked is whether the applicant is eligible or not. The eligibility criteria required to open a savings account are-

• The applicant must be an Indian citizen over 18 years of age.
• No previous holding of a savings account, neither with the bank you’re applying at nor others.
• Applicants must apply for the account in their individual capacities rather than on behalf of the Hindu Undivided Family (H.U.F.).

After the eligibility criteria are ticked off, it is time to provide the necessary documents to the bank to start the sanction process. 

• KYC Documents: 
• KYC documents include the following:

1. Photo ID proof according to the bank’s list of acceptable documents
2. Documentation proving the address of the applicant in accordance with the bank’s requirements
3. Completed account opening forms
4. An account declaration form is completely filled by a customer.

• Self-attested photograph and signature: These include:

1. The bank’s list of acceptable documents includes photo I.D. proof.
2. Proof of address as per the list of documents accepted by the bank.

After the payment of all the required additional fees, your zero-balance savings account can be opened successfully.

Customers can open a zero-balance savings account online as well. It takes less than a minute to open an online savings account, it’s seamless, and there’s no need for any contact. Your P.A.N. a card and Aadhaar number are all you need to open an instant savings account easily at work or at home. Alternatively, they can opt for P.M.J.D.Y.

The Pradhan Mantri Jan-Dhan Yojana (P.M.J.D.Y.) scheme offers zero-balance savings account in addition to the basic savings and zero-balance savings accounts offered by banks across the country. The government launched this scheme in 2014 to provide financial access to people throughout the country and to those who do not have any – especially in rural areas. For this scheme, you don’t need to provide any KYC documents; only your signature and fingerprint will be needed to open an account.

Customers of the Pradhan Mantri Jan-Dhan Yojana (P.M.J.D.Y.) can opt for Government subsidies and other such benefits offered by the Government of India when they subscribe to the zero-balance savings account. To open a P.M.J.D.Y. account,

• Pradhan Mantri Jan Dhan Yojana forms are available on the Pradhan Mantri Jan Dhan Yojana website or the website of any other bank.
• Attach the required documents to the form. Among these is a passport, driving license, Permanent Account Number (P.A.N.) card, voter identification card, job card issued by the Unique Identification Authority of India, which contains names, addresses, and Aadhaar numbers, are all documents eligible for opening this account as notified by the central government in consultation with the regulator.
• Fill out the form and take it to a nearby bank branch of your choice. Documents will be verified before the bank account is opened.

So head over to the official website of the bank of your choice to open a zero balance savings account, or talk to the bank officials in person for more details.