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A Savings account is a form of deposit account held at a bank by the customer that lets them park money in return for a modest interest from the bank.
Being the most preferred form of deposit account among masses, the utilities of savings account has undergone a major facelift to become the epicenter of all banking activities for people across India. Some of the prominent utilities of a savings account are as follows.

• Save money and earn interest
• Issuing cheques for payment to recipients
• For transfer of monies via internet and mobile apps
• Debit cards issued under the savings account is used for cash withdrawals and purchases
• For Electronic Clearing Service(ECS) of EMIs and bill payments(auto debit)

There are various types of savings accounts administered by the banks based on gender, occupation, income group etc. Conventionally, the savings account holder is required to maintain a minimum balance in the account at all times. If the balance falls below the minimum balance amount, banks penalise by means of a nominal monetary deduction.
Owing to latest trends in banking, “Zero Balance Savings Account” is increasing becoming a fad,

What Is Zero Balance Savings Account?

Where the account holder is free to operate the account without strings of maintaining a minimum balance.
This type of savings account is offered by banks to specific category of customers such as salary account holders and on basis of Pradhan Mantri Jan Dhan Yojana (PMJDY) - a scheme from Government of India with a mission of financial inclusion. Do inquire with the nearest banking branch to ascertain your qualification.

Features of Zero Bank Savings Account

• No condition of maintaining a minimum Monthly Average Balance or Quarterly Average Balance.
• Free ATM/Debit card that can be used to transact worldwide.
• Free cheque book of fixed amount of leaves per year. Subsequent request for cheque books are charged a nominal fee.
• Complimentary passbook is issued as part of the welcome kit, at the time of opening the account.
• Access to internet banking and online transactions and standard charges for payment transfers.
• Specific number of free transactions every month,subsequent transactions are billed a nominal fee.
• Special privileges and offers for salary account holders based on the category of company/institution.

General Terms & Conditions for Zero Balance Savings Account Opened Under PMJDY

• The total credit in the account should not exceed Rs.1 lac in a given financial year.
• The debit balance should not exceed Rs.50,000 at any point of time.
• The account holder should submit all documents as per KYC guidelines from RBI.
• Other terms that are specific to the bank where the account is being held.

Zero Balance Savings Account FAQ

1. How is a zero balance savings account different from other savings account?
Generally, banks have the concept of minimum Monthly Average Balance (MAB) for savings account. When the account balance does not meet the MAB requirements, non-maintenance charges will be levied. For a zero balance savings account, there is no MAB requirement.

2. What is BSBDA? Is a zero-balance account similar to BSBDA?
Following the RBI mandate, Basic Savings Bank Deposit Account or BSBDA is now offered by all banks. A BSBDA has no minimum balance requirement and the customers are offered debit card. BSBDA is zero-balance account but banks may offer the zero-balance flexibility to other types of savings account variants also.

3. What documents do I have to submit for opening a zero balance savings account?
You will have to submit the basic KYC documents - Identity proof and address proof.

4. What other benefits do I get with a zero balance savings account?
With a zero-balance savings account, most of the banks offer a free ATM-cum-debit card, passbook and cheque book. Also, facilities like internet and mobile banking are offered by several banks.

5. What will happen to my savings account if I don’t use it for a long time?
Your savings account will become dormant if there are no customer-initiated transactions for a specified period of time. Transactions through ATM, internet and phone banking will not be allowed by the bank if your account becomes dormant and you must activate it again to continue enjoying the benefits.

Zero Balance Savings Account Opened Under Pradhan Mantri Jan Dhan Yojana (PMJDY)

An ambitious mission from the Ministry of Finance, Govt. of India, this program is a national mission for financial inclusion by means of providing easy access to financial services such as Banking/ Savings & Deposit Accounts, Remittance, Credit, Insurance, Pension to all citizens in an affordable manner.
Benefits of Savings Account Opened Under PMJDY

• No need to maintain a minimum balance.
• Interest on deposits as per prevailing bank rates.
• Accidental insurance cover of Rs.1.00 lac.
• Direct benefit transfer from Government schemes are credited to this account.
• Overdraft facility is offered after 6 months of satisfactory operation.
• RuPay debit card and free Accident insurance cover