Besides helping you secure and grow money, a savings account is an essential financial tool as it is instrumental in helping you plan your finances for all your wants and needs at different stages of life. However, maintaining a savings account can be a hassle. As if keeping up with KYC norms wasn’t troublesome enough, you now have to deal with the minimum balance requirements as well. Once the balance falls below the prescribed limit, you lose money in the form of account penalties.
A zero balance account can put all these hassles to rest. It’s a new-age financial tool that takes the minimum balance requirements out of the equation. To put it simply, online account opening zero balance can be done without any funds. Plus, it functions like any savings account, allowing quick and easy deposits, transfers, and withdrawals. A zero balance account can even eliminate the need for KYC for an initial deposit worth Rs. 1 lakh or less.
Let’s elaborate on the benefits of opening a zero-balance account.
- Grow Your Money:
Just park your surplus money in a zero balance account and let it grow over time. The returns are more or less comparable to those of any traditional savings account. Take, for instance, Kotak 811, which is India’s first and leading zero balance account. It offers up to 4% annual interest, along with several helpful features to simplify banking. Plus, a zero balance account is secure, provided you choose your bank wisely.
- Functions Like Any SA:
Zero balance account is essentially a savings account minus the minimum balance requirement. The account can support all your banking needs, from bill payments and ATM withdrawals to money transfers and more. Kotak 811 even offers you a virtual debit card with every zero balance account, which works for online as well as offline shopping. You can also set up an e-mandate for recurring expenses to avoid missing payment deadlines. Credit cards are also there for the taking, subject to eligibility. A typical zero balance account also offers digital banking solutions such as NEFT, IMPS, UPI, and Scan & Pay.
- Cost-Effective and Rewarding:
The Average Monthly Balance (AMB) requirements are applicable to a standard savings account. Although the penalty for failing to meet the AMB requirements varies from bank to bank and even branch to branch; it can be up to 6% of the shortfall. Since a zero balance account doesn’t involve AMB limits, no penalties are applicable whatsoever. Also, a zero balance account doesn’t attract transaction fees. No matter what you use it for, all transactions are free. However, conditions may apply. Better still, Kotak 811 can even offer you decent cashback, rebates, free movie tickets, and more.
- Easy to Open:
An online account opening zero balance is as easy as it sounds. Depending on the bank you choose, you can log on to the respective bank’s website or download its app. Follow the instructions and you are sorted. Kotak 811 even offers a video KYC facility for added convenience. Even opening a zero balance account offline is convenient with Kotak Mahindra Bank. Feel free to call the bank’s customer care and receive the guidance of a dedicated executive. The documentation requirements are minimal as well. All you need is an Aadhaar Card, PAN Card, and a mobile number linked with Aadhaar.
Tips and Tricks
We understand your eagerness to open a zero-balance account. However, not so fast, as you first need to know a few tricks and tips that will help you choose well.
- Compare Interest Rates:
Not all banks offer the same interest rates. So, it makes sense to find out the interest rates of different banks, compare them, and make informed choices accordingly.
- Compare Features:
Some accounts offer a better range of features and perks. Your zero balance account should offer mobile and internet banking, an e-mandate facility, free debit and credit cards, and a complimentary passbook and cheque book.
- Know the Bank’s Presence:
Your bank should follow you wherever life takes you. So, choose a banking partner with an extensive country-wide network of ATMs and micro ATMs where you can carry out some basic banking functions, such as cash withdrawals, PIN changes, accessing mini statements, and account updates.
- Determine the Applicable Charges:
Your bank should not charge for essential banking features like online transfers, ATM/debit cards, ATM withdrawals, and more. Also, go through the terms and conditions to determine whether hidden charges or penalties are applicable.
