5 things you should know about a zero-balance account

When you are opening a bank account, you will be open to numerous types of accounts. You will have to decide which type of savings account you would prefer to use all times.One such savings account you will come across is the zero-balance savings account. Just like the name suggests, a zero-balance account is an account where the owner does not have an obligation to maintain a certain minimum balance at all times.

This type of account is offered to those who do not find it feasible to hold regular savings accounts and salary account holders. To learn more about a zero-balance account, read about the 5 things that we have listed below.


1. There does not have to be one single account holder

A zero-balance account is not restricted to just one single account holder. Of course, you can choose to operate the account personally, but you can also choose to operate the account jointly, former or survivor, either or survivor, and so on.

2. If the account is stagnant, it will get dormant

Even though you do not need to maintain a certain amount in your zero-balance account, you should never let it stay stagnant without any activity. This is because if you do not use your zero-balance account for any kind of transaction, no matter how big or small, for a specific period, your account will become dormant. Once your account becomes dormant, you will not be allowed to make transactions via the internet, ATMs, or mobile banking. To start making transactions again using this account, you will have to activate it again.

3. You always have the option of internet banking

While a zero-balance account is not the same as a regular savings account, you can still enjoy all of the facilities that the latter provides. You can activate your internet banking with a zero-balance account and start using a digital banking app  to manage your transactions too.

4. No need of facing penalties for maintaining a certain amount

This is the main feature of a zero-balance account. You do not have to face any penalty for not keeping a minimum amount in your account for a certain period of time. This means that you can remove all the money in that account and you would not face any repercussions.

5. You can use various facilities

Just like a regular savings account, a zero-balance account will also come with numerous facilities such as a chequebook, ATM card, passbook, debit card, and so on. Most banks charge a nominal fee for a new chequebook.

Customers can also get zero-balance accounts through the Pradhan Mantri Jan Dhan Yojana (PMJDY). To activate such an account, all one needs is to submit their basic KYC documents. Now that you have received an ample amount of information on a zero-balance account, you can make an informed decision on whether it would be a suitable choice for you.

We hope that this article has been helpful to you. All the best!


READ MORE:  5 common uses of an e banking app account and how you can open one

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