Featured Partners
1
AU Bank Savings A/C
Interest rate:
Upto 7.25%
Balance required:
INR 2,000 onwards
Special feature:
Monthly interest payouts
On AU Bank’s secure website
2
Yes Bank Savings Account
Interest rate:
Upto 6.25%
Balance required:
Zero
Special feature:
Earn up to 16000 Yes Bank Rewardz Points worth 4000 INR
On Yes bank’s secure websie
3
Kotak 811 Zero Balance Savings Account
Interest rate:
Upto 7% p.a. with ActivMoney
Balance required:
Zero
Special feature:
Zero-contact, Video KYC Savings Account
On Kotak’s secure website
Best Zero Balance Accounts
- IDFC FIRST Bank Pratham Savings Account
- Equitas Selfe Savings Account
- Axis Bank PRIME Savings Account
- Indus Delite Savings Account (IndusInd Bank)
- Kotak 811 Full KYC Account (Kotak Mahindra Bank)
- Jupiter Savings Bank Account
- SBI Savings Bank Deposit Account
FEATURED PARTNER OFFER
IDFC FIRST Bank Pratham Savings Account
5.0
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.
Interest Rate
4% to 6%
Balance Required
Zero
Special Feature
Unlimited ATM transactions
Interest Rate
4% to 6%
Balance Required
Zero
Special Feature
Unlimited ATM transactions
Why We Picked It
As the name suggests, with this account the IDFC Bank is trying to address the needs of those who do not even have a single bank account. The interest rate is good and it has a rare feature which other zero balance accounts do not have — free and unlimited ATM transactions from any bank’s ATM.
Key Features:
- Interest is credited monthly (against the industry norm of quarterly).
- As the interest rate is compounded monthly, increasing the principal every month and hence providing better interest.
- Interest rate on deposits below INR 10 lakh is 4% and above INR 10 lakh is 6%.
- Personal accidental insurance cover of INR 2 lakh.
- Unlimited free cash deposits.
- Four free cash withdrawals from the home branch or any other branch(not ATM).
- Cash withdrawals from the home branch or any other branch after four transactions will be charged at the rate of INR 2 per INR 1,000.
- Facility of NEFT, IMPS, RTGS available without any charge.
Pros & Cons
- Best interest rates.
- Personal accidental insurance cover.
- No deposit required to open the account.
- Free and unlimited ATM transactions and from any bank’s ATM
- Number of branches are fewer than other banks.
FEATURED PARTNER OFFER
Equitas Selfe Savings Account
4.5
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.
Interest
3.50% to 7%
Balance Required
Zero
Special Feature
Best interest rates
Interest
3.50% to 7%
Balance Required
Zero
Special Feature
Best interest rates
Why We Picked It
Equitas bank launched its digital savings account with the name of Selfie. And as the name suggests their consumer target is youth. This account is a zero balance account, which means there is no need to maintain a minimum balance. The interest rate of this new small bank is among the best in the industry and the interest is credited quarterly.
Key Features
- 1% cashback on online spends.
- 12.5% cashback on Amazon and Flipkart via GRAB DEALS.
- 5% to 45% on 30 other brands via GRAB DEALS.
- Insurance for air accidents and baggage.
- Free unlimited check books.
- Minimum deposit of INR 25,000 required to open the account, this amount can be withdrawn as soon as the account is active.
- Unlimited demand drafts free of cost.
Pros & Cons
- Cashback on online spends
- There is no cap on digital transactions.
- Insurance coverage available.
- Digital debit card with the account opening is exclusively for online shopping only.
- Minimum deposit of INR 25,000 required to open the account.
FEATURED PARTNER OFFER
Axis Bank PRIME Savings Account
4.5
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.
Interest
3% till INR 50 lakh and 3.5% above that
Balance Required
Zero
Special Feature
Cashback
Interest
3% till INR 50 lakh and 3.5% above that
Balance Required
Zero
Special Feature
Cashback
Why We Picked It
These accounts can be instantly opened after one applies for them digitally. KYC verification is done on a video call and there is no actual need to visit the bank branch. This account has a virtual debit card, which can only be used for online transactions and not to take out money from ATMs and other facilities where a physical debit card is required.
Key Features
- 1% cashback on online spends.
- 12.5% cashback on Amazon and Flipkart via GRAB DEALS.
- 5% to 45% on 30 other brands via GRAB DEALS.
- Insurance for air accidents and baggage.
- Free unlimited check books.
- Minimum deposit of INR 25,000 required to open the account, this amount can be withdrawn as soon as the account is active.
- Unlimited demand drafts free of cost.
Pros & Cons
- Cashback on online spends
- There is no cap on digital transactions.
- Insurance coverage available.
- Digital debit card with the account opening is exclusively for online shopping only.
- Minimum deposit of INR 25,000 required to open the account.
FEATURED PARTNER OFFER
Indus Delite Savings Account (IndusInd Bank)
4.5
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.
Interest Rate
4% below 10 lakh and 5% above that
Balance Required
Zero
Special Feature
Cashback/Discount/Reward Points
Interest Rate
4% below 10 lakh and 5% above that
Balance Required
Zero
Special Feature
Cashback/Discount/Reward Points
Why We Picked It
It is a savings account with a lot of new facilities like reward points on shopping. An initial sum of INR 10,000 will have to be deposited but one can take this money out as soon as the account is active as the account is a zero balance saving account. It has a lifetime free credit card available with it.
Key Features:
- Cashback programs available from time to time from various e-commerce companies.
- Buy one get one free on movie tickets from BookMyShow.
- Dining discounts from time to time.
- Platinum Plus debit card available with this account.
- The debit card fee is 500 + 18% GST.
- 6X rewards on shopping with your Platinum Plus debit card.
- PoS (point of sale) limits of INR 1 lakh.
- INR 2 lakh for ATM.
- Cross currency markup of 2%.
- Personal accident insurance of INR 1 lakh.
- Air accident insurance of INR 30 lakh.
- Purchase protection cover of INR 50,000.
- Lost card liability cover of INR 3 lakh.
Pros & Cons
- Cashback programs available.
- Reward points for using a debit card.
- Physical debit card available.
- Insurance covers available.
- Initial sum of INR 10,000 required to open the account.
FEATURED PARTNER OFFER
Kotak 811 Full KYC Account (Kotak Mahindra Bank)
3.0
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.
Interest
3.5% till 50 lakh and 4% above that
Balance Required
Zero
Special Feature
Physical debit card available
On Kotak Mahindra Bank's Website
Interest
3.5% till 50 lakh and 4% above that
Balance Required
Zero
Special Feature
Physical debit card available
Why We Picked It
Kotak Mahindra Bank has introduced three kinds of zero balance accounts out of which Kotak 811 Full KYC account is the most useful as it provides a cheque book and a debit card (if required by paying INR 199) and a free digital debit card.
Key Features
- Facility of NEFT, IMPS, RTGS available without any charge.
- Nil charges for INR 1 cash transaction in a month or many transactions worth INR 10,000. Any transaction after this will be charged at INR 4.5 per INR 1,000.
- Five financial transactions a month will not be charged, thereafter for every financial transaction there will be a deduction of INR 20.
- No charges for five cheque leaves per quarter and thereafter one will have to pay INR 3 for a single cheque leaf.
- INR 0.50 per SMS alert as per the request of the customer for a weekly or a daily report.
- 3.50% interest p.a. on a balance below INR 50 lakh, 4% interest p.a. on a balance above INR 50 lakh.
Pros & Cons
- Physical debit card available.
- No cash deposit required to open this account.
- Chargeable SMS alerts.
- Just five free financial transactions.
- Just one financial transaction for free.
FEATURED PARTNER OFFER
Jupiter Savings Bank Account (Jupiter)
3.0
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.
Interest Rate
2.5%
Balance Required
Zero
Special Feature
Digital banking
Interest Rate
2.5%
Balance Required
Zero
Special Feature
Digital banking
Why We Picked It
Jupiter is a digital bank providing zero balance savings account and it has been running its operations in collaboration with Federal Bank and Axis Bank. An all-digital bank is a new concept for the market but this savings bank account is quite competitive and has great features on offer.
Key Features
- Facility of unlimited NEFT, RTGS, UPI available.
- 5 IMPS transactions available.
- Physical debit card available (INR 199 is charged just once), virtual debit card available for free.
- Zero Forex charges on international debit card purchase transactions(conditions applied).
- First cheque book of 5 leaves is for free, after that it is chargeable at the rate of INR 3 per leaf and courier cost of INR 60 per kit.
- Demand draft is going to be free once a year and after that it will be charged.
- In a year one can visit the branch five times for free, after that it will be charged at the rate of INR 50 per visit (branch of the partner bank).
Pros & Cons
- Zero forex charges on international debit card purchase transactions.
- Physical debit card available.
- Demand draft is free just once a year.
FEATURED PARTNER OFFER
Basic Savings Bank Deposit Account (State Bank of India)
2.5
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.
Interest Rate
2.70 %
Balance Required
Zero
Special Feature
Biggest network of branches
Interest Rate
2.70 %
Balance Required
Zero
Special Feature
Biggest network of branches
Why We Picked It
SBI has introduced its own version of the zero balance account, in which there are no fancy features but a big positive that it can be used by the beneficiaries of various government schemes as it has the biggest network of branches across the country even in the rural areas.
Key Features
- Cheque book facility is not available
- Basic Rupay ATM-cum-debit card is available with this account.
- Applicants are not allowed to have any other savings bank account in SBI, if they want to have the Basic Savings Bank Deposit Account.
- In a month only 4 cash withdrawals are free of cost. These withdrawals will include ATM withdrawals, cash withdrawals, AEPS cash transactions.
- Facility of NEFT, IMPS, RTGS available without any charge and unlimited.
Pros & Cons
- Rupay ATM-cum-debit card is available free of charge.
- 4 cash withdrawals are free of cost.
Documents Needed To Open a Zero Balance Savings Account
Key documents needed to open a zero balance savings bank account include the below:
Proof of identity required by both salaried and self-employed:
- Passport
- Voter’s Identity Card
- Driving License
- Aadhaar Letter/Card
- NREGA Card
- PAN Card
All the above mentioned documents can be used for the purpose of KYC, but as per the new government guideline the applicant must produce an Aadhaar card or PAN card to open a bank account. Rest of the documents may not hold the same credit. In case the applicant is a non-resident India (NRI), they can produce other documents besides Aadhaar and PAN.
Service Charges, Fees, Tips to Keep in Mind While Opening a Zero Balance Savings Account
Indian companies do not have any account opening fee but there can be various charges which an account holder must know about before opening an account.
- Average Monthly Balance to Maintain: Every account needs to maintain an average monthly balance and on not doing so, one will have to pay a penalty. One needs to check if this penalty is not very high.
- ATM Cash Withdrawal: Users will have to check if the number of withdrawals from ATMs are charged or free or if free to what extent.
- Debit Card Charges: One will also have to check if the charges are too high or if the bank is providing a satisfactory debit card or not.
- NEFT/RTGS/IMPS: Applicants must check if these transactions are charged or free.
- Cheque Leaves Per Year: One will have to check the charges for a checkbook.
- Cash Transactions: One will have to check if cash transactions are charged or free.
Terms To Know When Using A Savings Bank Account
What is AePS?
The AePS refers to the Aadhaar authentication-based network of micro ATMs and the full form is Aadhaar Enabled Payment System (AePS). This allows banking transactions at PoS (microATMs) through the business correspondent of any bank by using Aadhaar authentication.
What is NEFT?
The National Electronic Funds Transfer (NEFT) was started by the Reserve Bank of India to facilitate consumers in transferring money between any two bank accounts of the same or a different bank on a one-to-one basis. As long as both the bank accounts are NEFT-enabled, a money transfer is possible within minutes.
What is IMPS?
The Immediate Payment Service (IMPS) is governed by the National Payments Corporation of India (NPCI, which is an RBI body) for instant payment via the inter-bank electronic funds transfer system in India.
What is RuPay?
The NPCI has launched RuPay cards to facilitate banks and financial institutions by providing them a purely Indian card with universal acceptance.
Featured Partners
1
AU Bank Savings A/C
Interest rate:
Upto 7.25%
Balance required:
INR 2,000 onwards
Special feature:
Monthly interest payouts
On AU Bank’s secure website
2
Yes Bank Savings Account
Interest rate:
Upto 6.25%
Balance required:
Zero
Special feature:
Earn up to 16000 Yes Bank Rewardz Points worth 4000 INR
On Yes bank’s secure websie
3
Kotak 811 Zero Balance Savings Account
Interest rate:
Upto 7% p.a. with ActivMoney
Balance required:
Zero
Special feature:
Zero-contact, Video KYC Savings Account
On Kotak’s secure website
Methodology
To rate a particular bank for its savings accounts we have taken into consideration the following factors.
- Ease of opening an account.
- One point for debit cards associated, as debit cards also have their own facilities.
- Extra facilities provided by the particular bank for free like shopping discounts, insurance, cashback.
- If the customers are deriving value for money.
- The kind of companies a bank has partnered with; are they good enough or more namesake.
Next Up In Business
- Best Salary Account
- Best Savings Account
- Best Bank Account for Minors in India
- Best Small Finance Bank in India
- Cash Deposit Limit in Saving Account as Per Income Tax
Frequently Asked Questions (FAQs)
What is a zero balance savings account?
An account which does not need a monthly balance to be maintained. In a few rare cases one may need to deposit some money in the beginning to open the account, but can also take that money out of that account as soon as the account is active( even within five minutes). In most of the zero balance accounts one does not need to deposit anything to open it and hence there are no penalties charged for not maintaining the minimum account.
How to open a zero balance savings account?
One can visit the nearest branch of the bank providing a zero balance savings account with the KYC documents to get an account started. Applicants will have to select from the number of kinds of savings accounts available and categorically tell the branch that they were interested in a zero balance savings account only. Once the documents are checked the account can be activated.
- Applicants will have to enter their mobile number preferably the one registered with the adhar. The number registered with Aadhaar will help the bank to pull your basic details before speaking to you, making the process lucid. There you can also select a slot for the next working day covenant for you in some of the cases.
- Once the number is registered someone from the company will get on a call with you for the KYC checks at that point in time one must have his or her Pan card or Aadhar card. Bank employees will get on a video call after taking your permission and take a picture of yours with a clear background from their end. This will finish the process and the bank will finish the KYC process and start an account.
- Details of this account will be sent to you in an email and a kit will be sent by post within seven working days carrying your checkbook and other details.
How to open a zero balance savings account without a PAN card?
Applicants can open a zero balance account with either of the following documents as identity proof:
- Passport
- Driving license
- PAN card
- Aadhaar card
Can I open a zero balance savings account online?
Zero balance accounts can be opened by applying online and getting the KYC formalities done on a video call. This can also be done by visiting websites which have partnered with the service provider.
How to convert a savings account to a zero balance savings account?
Customers wanting to convert their savings account to a zero balance account will have to visit their savings account and will have to visit their branch and fill the required form to convert their normal savings account to a zero balance account and get it converted.
Which banks offer zero balance savings accounts?
The Government of India is encouraging all the banks to provide the facility of zero balance savings accounts so that the citizens may take the benefits of various government schemes like Pradhan Mantri Jan Dhan Yojna and accordingly all the private and public sector banks have come up with their zero balance savings accounts. People wanting to open a zero balance savings account can choose from the long list of banks as per their convenience.
What are the benefits of a zero balance savings account?
There are many benefits of opening a zero balance savings account which are as follows:
- There is no need to maintain a monthly balance and even if there is no balance in the account the bank will not close your account or charge penalty on not entertaining the minimum balance.
- The customers will not have to visit their banks physically as most of the zero balance accounts these days are digital accounts.
Information provided on Forbes Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circ*mstances. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities. Performance information may have changed since the time of publication. Past performance is not indicative of future results.
Forbes Advisor adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author’s alone and have not been provided, approved, or otherwise endorsed by our partners.
Armaan JoshiEditor
Armaan is the India Lead Editor for Forbes Advisor. He has more than a decade’s experience working with media and publishing companies to help them build expert-led content and establish editorial teams. At Forbes Advisor, he is determined to help readers declutter complex financial jargons and do his bit for India's financial literacy.
