There are numerous benefits of maintaining a Bank Deposit. The money you earn and save primarily gives you decent returns, which you can use in the future. Hence, with bank deposits, you earn interest and ensure the safety of funds. It helps you get easy access to money without risks or financial threats.

Recently, India has witnessed an increase in people opening a Zero Balance Account. The government offers many attractive schemes to banks and customers to encourage them to open one. You can also invest in other saving schemes like Fixed Deposits, Recurring Deposits, etc.

Definition

A Zero Balance Saving Account refers to an account with no limit on accumulating funds or penalties for a low balance. The Reserve Bank of India guideline states it as a Basic Savings Bank Deposit Account. Banks have facilities enabling more savings among people.

Features

There are different Bank Accounts for all sectors of society, including children, women, and senior citizens. The Women Saving Account holder gets multiple benefits, including an accidental death cover of Rs. 10 lakh, accidental hospitalisation cover of Rs. 1 lakh, and a daily cash allowance of Rs. 1,000 daily for 10 days yearly, for each day of hospitalisation due to an accident.

You get an annual maintenance charge waiver in the first year for Demat Accounts. Other benefits include preferential rates on Loans and a daily cash withdrawal limit of Rs. 25,000. You get up to 90% finance on the vehicle’s on-road price and seven-year tenure when you apply for an Auto Loan, up to 3.5% lower interest rate on Two Wheeler Loan, and up to 50% discount on processing fees.

Transactions

An ideal Savings Bank Account usually needs an average minimum balance. But in the case of a Zero Balance Account, the bank gives you all the usual facilities despite a zero balance. Conduct limited transactions from your account per month. Usually, banks allow up to four free transactions. If the limit exceeds, they convert it into a Regular Savings Account.

Free facilities

All account holders get some facilities free of cost, like a passbook, chequebook, ATM card, and other bank documents. Use the ATM card for transactions at least three or four times a month. You pay nominal charges for Online Banking and safe deposit locker facilities.

Conclusion

A Basic Saving Account aims at improving currency circulation in India’s rural and semi-urban towns and cities. It makes you spend responsibly and save for the future while giving you access to other financial products.