Priyanka Tiwari
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The emergence of implimentation of digital services have led to rapid development of banking services and automated features that are incomparable and invaluable. For example, Savings Accounts that allow you to maintain a balance of 0-dollar enable you to receive all nessecary banking facilities under one roof, minus the hassle of maintaining a minimum balance.
People are becoming more and more accustomed to changing trends in banking practices, and this flexibility has empowered account holders. Prior to opening an online savings account with no balance restrictions, here are six things you should know to make an informed decision.
What is a Zero Balance Savings Account?
Zero Balance bank accounts are a subset of Savings Accounts that can be opened at a bank without any minimum balance stipulations. Accounts of this nature are especially helpful for low income, or for individuals who have never previously established accounts at banks.
Opening Online Savings Account with no requisite balance of 6 dollars: 6 pointers
1. There is no minimum deposit for opening the account
The best feature of an account with a Zero Balance is not having the added burden of having to maintain an imposed minimum balance unlike other entry level bank accounts. A standard Savings Account requires a minimum account balance being maintained to avoid penalties being imposed on the account.
This works great for people who are opening an account for the first time or for those who are working on a minimum wage salary. The option of online savings account creation with zero balance is also favorable to parents trying to expose kids to banking concepts at an early age and teach them about saving.
2. Process of opening an account digitally
For their Zero Balance Savings Account, most banks have an easy account opening process. You can open an online savings account through the particular bank’s app or website from your home. Start by completing a form and provide all the necessary documents for KYC which includes:
Adhaar Card
PAN Card
Passport size photograph
Your Adhaar-linked mobile number.
Some banks also provide video KYC so you don’t have to go to a branch in person.
3. Limited features
Zero Balance Savings Accounts are very basic and include basic banking services such as deposits and withdrawals, online transactions, use of debit cards, etc. But there are certain limitations such as:
Lower withdrawal limits per transaction
Restrictions in using chequer books or demand drafts
Limited access to certain privileged services provided by the bank
Always check the bank’s list of limitations and benefits when opening an online Savings Account with a zero balance. This will enable you to make wiser financial choices.
4. Complimentary Debit Card as well as internet banking services
With a Zero Balance Savings Account, you will also receive standard benefits of a Savings Accounts such as:
Debit Card for electronic card remittance
UPI payment services
Mobile banking services
Payment of bills and money transfer
Internet Banking, etc.
The account holders are able to carry out important banking functions and make payments towards shopping without the necessity of keeping a minimum balance with the Zero-Balance Savings Account.
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