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. 

A credit score is something which plays a very important role. The banks and the lenders check the judge with a flick of a minute whether the person is competent for a loan or not.

There are many hidden facts about this score. 

No matter how careful you are, there are some forms of errors in them. As a result, we can infer that undergoing a regular credit score check is important. Also, we need to contact the credit bureaus. 

Let us know When do we need to look at a Credit Bureau ?. 

Sometimes there can be some degree of error which needs to be corrected. Hence, a bank or lender is not the right person to go and approach. We need to directly shoot an email to the credit bureau. 

Another thing being, people need to be ready with all the documents if required in the last case. 

Calling someone can be another option. Make the self-check first and thereby get evaluated by the bureau. 

Keep a regular track about all updates. 

I will always advise consulting a professional financial adviser. 

Are you planning to take a loan? Many times people struggle when it comes to taking a loan. What can be the reason? 

The score. Yes, it is the cibil score. Learn more and get to know about your cibil score.

There are different cibil score ranges, and they vary. People need to accelerate and make up their mark to reach a perfect score. A perfect score is not difficult to achieve. A score of above 700 is good. 

The first important thing is to become aware of the importance of a credit score. 

Educate yourself and read more about it. Secondly, paying regularly is very important. 

Again, be active and use your card, but please don’t delay or avoid dues. 

Have a variety of funds as it is considered to be helpful. How many times have you checked your report or someone else has also checked marks as an essential parameter in terms of reaching a good score. A clean report is always better, credible and trustworthy. 

So, follow all the valve key points, and you are ready to go for your journey. 

A CIBIL report is a detailed breakdown report of any individual’s credit history prepared by the CIBIL. The Credit bureau collects all financial information about individuals and creates credit reports based on the received data, and lenders use the reports along with other details to determine loan applicants’ creditworthiness. Read your Cibil report carefully.

Credit reports also include personal information such as the individual’s current and permanent addresses, PAN card number and employment history. These reports include a credit history summary which has the details of all bank loans or credit card accounts that are past due or in good standing. They also reflect detailed account information related to high balances, credit limits and the date accounts were opened. Credit reports typically divide information into Six sections:

• Personal information
• Contact information
• Employment information
• Account information
• Enquiry information
• CIBIL score

Continue Reading : The revelation behind my CIBIL report

A credit score is a significant three-digit number that talks about our financial health. It is essential for an individual to maintain a good credit score because firstly it is the eligibility check for loans. A high credit score gives you the ticket to be eligible for getting loans and credit cards. A good credit score is suggestive of a healthy repaying habit, which makes you available for a loan. Secondly, at the time of taking a loan, someone with a good credit score can quickly negotiate for a lower interest rate.

Thirdly you can quickly get a credit card with a higher limit based on a good credit score. And Finally, your credit score also plays some role in the visa approval process, along with your income and tax declarations. 

Continue Reading : Is My credit score updated?

Marriage is not always about promises and celebrations. Indeed it is also about maintaining a planned and well-resourced life. This, however, is possible only when the finances of both the individuals are collaborated and managed in a good way. Newly wedded couples often plan their future endeavours for a well-led life; this, however, requires adequate funds. The funds, when combined and doubled up, are often misused, which can ruin the financial plans set for life. Therefore, here are some credit tips for the newlywed couple. Hence, ensuriing a good credit score is a key for everybody.

Be considerate of the credit scores: A joint loan for buying a car or a home often creates a shared responsibility on co-borrowers of a loan. The married couple usually tends to go for jit loans. However, before going for one, ensure having considered all information about each other’s credit habits and credit ranking. If the score is not good on the other half, prefer an individual loan.

Monitor expenditures: Newlyweds should often encourage each other to make correct decisions in life. Therefore, ensure that your partner does not overspend and manages his or her income well. This will ensure, and no person falls into debts, and thereby the financial objectives are not compromised on.

Monitor credit score: Just like monitoring each other’s expenses, monitoring the credit score is equally important. Keep a routine check on your credit score, using free cibil score calculators and ensure that your partner does the same. This will enhance the loan borrowing capability of both, which may occur at any time for keeping up for the requirements in life.

On a concluding note, married life is all about coordination and adjustment. However, it is not only emotional adjustments that must be worked upon, indeed, but financial coordination of life partners is also equally required for a happily married life. Thus, the above mentioned is necessary and advisable. 

Continue Reading : Key Credit Tips to Keep in Mind for The Newlyweds