Banking without limitations The advantages of online zero balance accounts.
A savings account is the first and the easiest step to start your financial journey. However, there is an issue. Maintaining a savings account today requires you to keep a minimum deposit/of money in your account at all times. It may sound easy, but that is not the case with everyone.
Therefore, many financial institutions today offer zero balance account opening facility to resolve this barrier and bring more people to the banking network.
What is a zero balance account?
Unlike a regular savings bank account in which you have to keep a minimum average monthly balance, a zero balance account does not ask for such commitments. Here, you can maintain as low as no balance, and the account will remain active.
Having said that, there may be certain terms to that, like you can only maintain such a low balance for one month, etc. You need to check these terms and then move ahead.
Nevertheless, the introduction of the zero balance account has been a game-changer as almost every customer appreciates this facility.
What are the advantages of zero balance account opening?
The perks of a zero balance account further enhance its advantages. Several digital banking platforms enable you to open a free savings account online, ensuring a smooth and hassle-free banking experience.
That said, here are some of the advantages of opening a zero balance savings account:
1. Open an instant zero balance account online: Several financial institutions offer an instant zero balance account opening facility for enhanced convenience. The entire process is quick and can be completed in a matter of minutes. Upon successfully opening the account, you can access your account number right away, but the passbook and debit card will come later.
2. Savings without maintaining any minimum balance: These bank accounts allow you to spend and save your money as you wish without maintaining a minimum monthly balance. This feature allows you to manage your finances without worrying about any restrictions and penalties.
3. Get a free virtual debit and credit card: Several banks offer free savings account online with a free virtual debit and credit card. You can use these debit and credit cards for all your online purchases and bill payments. It provides a convenient and secure way to make digital payments without using a physical payment card.
4. Getting rewards and bonuses: Another notable advantage of opening a zero balance account is the rewards and bonuses it offers. As an account holder, you will be eligible for additional perks with each transaction, including discounts and cashback.
5. Enjoy competitive interest rate: Despite being a zero balance bank account, you can earn competitive interest rates on your savings. The rate of interest in some banks can go up to 4.50%. Furthermore, if the primary account holder is a woman or senior citizen, this interest rate can go up further. It allows you to grow the funds and meet your financial requirements.
6. Setting up e-mandate: With a zero balance account, you, as an account holder, can set up an e-mandate for all your recurring expenses. It will include credit card bill payments, EMIs, utility bills, etc.
While a zero balance account is designed for individuals who face difficulty maintaining a minimum monthly balance, banks also value the importance of helping their customers' money grow. Hence, every Indian citizen over the age of 18 is eligible to open this savings account.
How to open a zero balance bank account?
Opening a zero balance account is a simple procedure. You have two options -
1. Complete the process online through the official website or mobile app of the financial institution
2. Visit the nearest branch and complete the process manually
To open the account online, you will have to provide some basic details in the application and submit the documents, such as identity proof, address proof and photographs. Once the bank verifies all the details, you will receive all your account details right away, and a welcome kit will arrive at your address later.
The offline process also remains the same, but instead of doing everything online using your device, here you head down to the branch, fill out the form, and submit copies of the documents required.
Eligibility criteria and documents required to open a zero balance account
The eligibility criteria for a zero balance savings account are -
Documents required for opening such an account are -
Apart from these, you need to ensure that you don't have an existing zero balance account with the same financial institution you are applying for this account with.
Final thoughts
A zero balance account provides numerous benefits right from the start, helping you manage your finances in a better way. Moreover, consider a zero balance account worthwhile if the idea of making transactions without worrying about maintaining any minimum balance sounds appealing to you.
Having said that, it is essential to assess your financial needs and make an informed decision accordingly. Also, choose a banking partner that will bring all the regular advantages of this account and help you reach your financial milestones.
# This is a guest article authored by Kotak Mahindra Bank. For any enquiries or details, you can visit the author's website.