Everything you Need to Know About Zero Balance Account


People need a savings account to park their funds to keep them safe. Banks enable account holders to open a savings account that best meets their unique needs – with the condition that they will maintain a minimum monthly balance in the account.

Most banks levy charges monthly if the monthly balance in the savings account goes below the minimum requirement. It could come as a blow to people with low income or people with small businesses who have to conduct multiple transactions in a day.

To counter such issues, banks allow people to open a zero-balance savings account which comes with unique features and benefits. With this account, you can enjoy all the banking benefits with nil non-maintenance charges.

In other words, people with a high volume of transactions or low-income groups can use it and become more centralized with their cash flow without stressing about being with a penalty on a low balance.

It makes sense to opt for a zero-balance account as a person can use all the funds without needing to either close the account or keep paying the monthly charges to the bank.

All about a zero-balance savings account

If you are a small business owner or a pensioner or someone with sporadic cash flow, this account will help you level up your accounting as you can continue to conduct banking transactions and maintain a zero balance at the end of the day without worrying about paying any fees.

In most cases, people find it easier to track their transactions when they use this account as it protects against overdraft fees, risks, or fraud. If you have one regular account where you park your funds but need another account from where you can conduct all your expenses for different projects, it can act as your financial management tool.

The recent pandemic saw many people lose their jobs and pay cuts, which made it difficult for many households to maintain regular cash flow. To add to it, a hefty penalty for carrying a nil balance or below the minimum maintenance amount adds to the financial woes. In such cases, it makes sense to opt for a zero-balance savings account as the account holder can use all the available funds without needing to either close the account or keep paying the monthly charges to the bank.

Other benefits of zero balance savings account

Easy to open

‘Easy peasy lemon squeezy’ never sounded better than with this account. When you open a zero-balance savings account, you follow basic easy steps. You just need your Aadhaar card and PAN card to open the account. You can either open it online or visit the nearest bank branch.

High-interest rate

Just like any other savings account, you enjoy similar benefits. But if you choose a bank that provides a high-interest rate, then it’s the cherry on the cake for you. For instance, premium banks like IndusInd Bank provide high-interest rates for savings account up to 6%* which can help you grow your income as well.


When you use a debit card with your zero-balance savings account, you automatically enjoy easy and convenient access to your money.  Additionally, some banks offer rewards and cashbacks on debit card transactions.

Access to Banking Services

A zero-balance savings account is just like a regular savings account when it comes to banking services such as Mobile Banking and Net Banking. These enable you to enjoy a host of facilities such as easy transfer of funds, payment of utility bills, and checking account balance.

Eligibility Criteria for Zero Balance Savings Account

Every bank has its own eligibility criteria for zero-balance savings account. Nonetheless, the general criteria are as follows:

  • Any individual above 18 years of age
  • Any individual with valid KYC Documents

Thus, as illustrated above, a zero balance savings account is a superb option for people who wish to enjoy banking services at minimum cost and hassle.


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