OPEN ZERO BALANCE BANK ACCOUNT
| Search | ||||
|---|---|---|---|---|
| Bank | Interest Rate | Minimum Balance | Rating | Apply |
Kotak Mahindra Bank- Kotak 811 | 4%* p.a. | 0 | 5 * | button |
IDFC First Bank Zero Savings Account | 6% p.a. (Upto Rs.1 lakh) 7% p.a. (Above Rs.1 lakh) | nil | 4 | APPLY NOW |
ICICI Bank Zero Balance Account | 3% p.a. (Balance below Rs.50 Lakhs) 3.5% p.a. (Balance above Rs.50 Lakhs) | Nil | 4 | APPLY NOW |
Equitas Bank Zero Balance Savings Account | 3.50% (Up to ₹ 1 lakh) 7% (Above ₹ 1 lakh and up to ₹ 5 crs) | 0 | 4+ | APPLY NOW |
Kotak 811 – Video KYC Account | 4%* p.a. | 0 | 4+ | APPLY NOW |
Indus Online Savings Account | 4% p.a. (Upto Rs. 1 Lakh) 5% p.a. (above Rs. 1 Lakh & upto Rs. 10 Lakhs) 6% p.a. (above Rs. 10 Lakh) | 0 | 3.5+ | APPLY NOW |
What is Zero Balance Bank Account?
A zero balance account is a savings account with no minimum average balance requirement. This means you don’t have to maintain a specific amount as a minimum average balance. There are no charges for non-maintenance of the minimum average amount.
Documents needed to open a zero balance account
To open an online savings zero balance account:
PAN card
Aadhaar card
To open a basic savings account
Anyone document towards proof of identity and proof of address
Passport
Voter’s Identity Card
Driving Licence
Aadhaar Letter/Card
NREGA Card
PAN Card
How to open zero balance bank account?
Online by downloading app or website
Individuals can open zero balance account online by downloading the app or through the bank’s website. You need to fill up the online form with the required details and validate your Aadhaar by verifying the OTP sent to your Aadhaar registered mobile number. You will receive your account number and other details on your registered email id.
Through Video KYC
After RBI’s approval in January to verify KYC details over the video, a few banks such as Kotak Mahindra Bank, IndusInd Bank, IDFC First Bank have introduced video KYC to onboard new customers. Kotak Bank has launched video KYC for new Kotak 811 zero balance customers. Video KYC is a start-to-end process where customers get a full-fledged savings account. So, after completing the process, customers don’t have to visit the bank branch to complete the full KYC process.
Visiting bank branch
Customers opening a basic savings account can visit the nearest bank branch with the original documents, attested KYC documents, passport photographs and fill up the account opening form to open the bank account.
Features and benefits of zero balance accounts
Online Zero Balance Savings Account
Open an account instantly by downloading the bank’s app, through the bank’s website, or video KYC.
No minimum balance requirement.
Most of the online savings account zero balance accounts don’t need any initial deposit requirement.
Open for resident Indian citizens above 18 years of age.
Customers can free virtual debit cards and can request a physical debit card from their mobile banking app at a nominal annual cost.
Individuals can hold up to Rs.1 lakh in their account and the total amount of withdrawals and credits can’t exceed more than 2 lakh in a financial year. Limits on transactions and spends are lifted after completing the full KYC process. There are no such restrictions on accounts opened through the video KYC process.
After the full KYC process, online zero balance account holders get all the facilities of a regular savings account such as a checkbook, etc.
Account holders can access internet banking and mobile banking platforms to transfer funds, shop online and pay bills with no fees.
Frequently Asked Questions on Zero Balance Accounts
- 1.Which banks offer zero balance accounts?
Banks such as Kotak Mahindra Bank, Axis Bank, Digibank are some of the banks that offer zero balance to its customers.
- 2.Can I open a zero balance account online?
Yes, you can open a zero balance account online. Kotak 811, Axis ASAP, digisavings by Digibank are some of the zero balance accounts that you can open online.
- 3.Why should I open a zero balance account?
Many top banks such as Kotak Mahindra Bank, Axis Bank and Digibank offers zero balance accounts to its customers.
Some of the reasons why you should open a zero balance account are as follows:
- No minimum balance requirement
- No minimum initial deposit
- Open account instantly by downloading the bank’s mobile banking app or through the bank’s website
- Free virtual debit card
- Free online transactions
- Fewer and lower charges
- Attractive interest rates
- 4.Is it good to open a zero balance online account offered by banks?
Online zero balance savings account is a type of savings account offered by various banks. If you are looking for a savings account without any minimum average balance, zero balance account is a good option.
You can open these accounts online instantly. As these accounts are opened online, you have to complete the KYC procedure within 12 months after opening the account.
After the full KYC procedure is completed, restrictions on deposits and withdrawals are lifted.
However, most of these accounts are new-to-bank customers.
- 5. What important things should be kept in mind before opening 811 Account by Kotak Mahindra Bank?
Here are some of the important things that you should keep in mind before opening 811 Account:
- You need to have a PAN card, Aadhaar card and mobile number registered Aadhaar card to open a Limited KYC Account
- You need to be an Indian citizen above 18 years
- You should not be a politically exposed person (PEP)
- You should not have an existing relationship with the bank or any zero balance account in any other bank
- The account is valid for 12 months and you can keep only Rs.1 lakh at any particular time. You can remove these limitations by completing the full KYC by fixing an appointment or visiting the nearest bank branch. After completing your KYC process, your limited KYC account will be converted to a Full KYC account without any limitations.
- 6. Can I open a bank account with zero balance?
You can open a zero balance account, if you have a PAN card, above 18 years and you are Indian citizen.
Kotak 811, Axis ASAP and digisavings are some of the main zero balance savings account.
- 7. Can I convert my savings account into zero balance through online?
Typically, zero balance accounts that can be opened online such as Kotak 811, Axis ASAP are meant for customers who don’t have any existing relationship with the bank. Hence, you may not be able to convert your savings account into zero balance account. Moreover, you can’t open a new zero balance account with your bank.
- 8.How much money is required to open a zero balance savings bank account?
Each bank has a different policy on the minimum balance required to open a savings account. Whereas, you can also choose to open a zero balance savings account in any of the banks that provide such a service.
- 9.What is the initial deposit that I have to make to the bank when opening a zero-balance savings account?
Most zero balance accounts such as basic savings account and online zero balance accounts don’t have any minimum initial deposit. However, there are a few exceptions. Axis ASAP, the zero balance account of Axis Bank has a minimum initial deposit of Rs.10,000.
- 10.What should I do if I want to check my balance, make cash withdrawal etc.?
You can check your balance and other banking transactions through internet banking, mobile banking, Whatsapp banking etc. You can make cash withdrawal through the bank’s ATM card.
- 11.What are the difference between the basic savings zero-balance savings account and online savings zero balance accounts?
The basic savings account is a part of financial inclusion program that banks have introduced under Pradhan Mantri Jan-Dhan Yojana (P.M.J.D.Y). Customers can opt to receive government subsidies and other government benefits on this account.
Online savings zero balance accounts are digital savings account offered by various banks that customers can open online by visiting the bank’s webpage or by downloading the mobile banking app.
- 12. Can I add a nominee in zero balance savings account?
Yes, you can. While opening the bank account online, you can add your nominee details. Adding nominee details in your bank details is a good practice as after the death of the account holder, the funds are transferred to the nominee without any issue
- 13. Can I open a joint zero balance savings account?
Yes, you can open a joint zero balance account. However, please check with your bank for information as different banks may have different rules. Kotak 811 customers can open a joint account after they have completed their full KYC process.
- 14. Is it a good idea to open a zero balance online account offered by banks?
Opening a zero balance account online is a good idea. Even if you have a savings account, you can open an online savings account as a secondary account and use it to park your emergency fund or save for your splurges.