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
- DCB Bank Basic Savings Bank Deposit Account
- Future FIRST Savings Account
- Equitas Selfe 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
DCB Bank Basic Savings Bank Deposit Account
4.0
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
1.5 to 8.5%
Balance Required
Nil
Special Feature
Basic banking facilities are free
Interest Rate
1.5 to 8.5%
Balance Required
Nil
Special Feature
Basic banking facilities are free
Why We Picked It
The DCB Bank Basic Savings Bank Deposit Account offers a no minimum balance requirement feature, providing customers with flexibility in managing their funds. With the Auto-Saver facility, account holders can seamlessly transfer funds between their savings and fixed deposit accounts, choosing from a range of tenure options spanning from 7 days to 1 year. This unique feature allows customers to maximize their interest earnings by converting savings into fixed deposits, providing an opportunity for higher returns. Funds are automatically utilized to create fixed deposits from the savings account, with linked fixed deposits broken automatically to cover any shortfalls resulting from debits such as cheque issuances or ATM withdrawals. The broken fixed deposits are adjusted in multiples of INR 1, and the remaining balance continues to accrue interest at the initial contracted rate, ensuring optimal returns. While interest rates on traditional savings accounts are typically low, the converted amount in fixed deposits earns a rate of approximately 8.8%.
Key Features
- Unlimited withdrawals permitted each month across all channels, including ATM withdrawals( one will have to maintain a minimum balance of INR 10,000 for unlimited free ATM withdrawals, otherwise three free transactions).
- Basic banking services and cheque books will be provided.
- No restrictions on the number of deposits allowed per month.
- Zero Balance Savings Account (Basic Savings Bank Deposit Account).
- Complimentary Debit Card and Passbook.
- All basic banking services and cheque books provided at no charge.
- Unlimited monthly withdrawals permitted.
Pros & Cons
- Good interest rate available on converting it into FD.
- Free online transactions.
- No restrictions on the number of deposits allowed per month.
- One must maintain a balance of INR 10,000 to enjoy unlimited ATM transactions.
- Understanding the functioning of the interest system is necessary to obtain the maximum interest rate, as the rate remains at just 1.5% without converting it to a fixed deposit.
FEATURED PARTNER OFFER
Future FIRST Savings Account
4.0
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
3 to 7 %
Balance Required
Nil
Special Feature
Interest on interest
Interest Rate
3 to 7 %
Balance Required
Nil
Special Feature
Interest on interest
Why We Picked It
Future FIRST Savings Account standout feature is the monthly interest credit. It is only for students and unlike the standard practice of quarterly interest credit, IDFC FIRST Bank provides monthly interest credits, allowing you to maximize your earnings potential and grow your savings faster. Additionally, the debit card offers free and unlimited ATM transactions at any bank across India, ensuring convenient access to your funds without incurring additional charges. This combination of monthly interest credits and free ATM transactions underscores IDFC FIRST Bank’s commitment to providing innovative and customer-friendly banking solutions that cater to your financial needs and preferences.
Features:
- Exclusive dining deals on IDFC FIRST Bank Debit Card of food and beverages, saving up to INR 6,000.
- Personal Accidental Insurance Cover of INR 35 lakhs, providing coverage for death or permanent disability and saving you INR 7,000 annually.
- Airport lounges twice per quarter in major cities, offering a relaxing experience before your flight and saving you INR 12,000 annually.
- Various benefits of a Visa Signature card, including a Future FIRST Account featuring a VISA Signature Debit Card and a zero balance savings account.
- Receive a personal accident cover of INR 35 lakhs and air accident insurance of INR 1 cr for added financial security.
- Monthly interest credits on your Savings Account, allowing you to earn interest on interest, a unique feature of IDFC FIRST Bank.
- Unlike the industry norm of quarterly interest credit, IDFC FIRST Bank offers monthly interest credits, maximizing your earnings potential.
- Free and unlimited ATM transactions at any bank across India, providing convenient access to your funds without additional charges
Pros & Cons
- Good interest rates.
- Personal accidental insurance cover.
- No deposit required to open the account.
- Free and unlimited ATM transactions and from any bank’s ATM
- Only for students.
FEATURED PARTNER OFFER
Equitas Selfe Savings Account
4.0
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
3.50% 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
Indus Delite Savings Account (IndusInd 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 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:
- The Indus Delite Savings Account from IndusInd Bank offers a variety of features designed for convenience and modern banking needs. Here are some of the key benefits:
- You can open this account with no minimum balance requirement.
- Up to 5% cashback on debit card spends, including specific offers on Amazon.in.
- Up to 20% off on Swiggy and Big Basket1.
- ‘Buy 1 Get 1 Free’ offer on movie tickets booked via BookMyShow, up to 1 free ticket per quarter.
- Get a complimentary insurance cover worth 1.5L with the Delights debit card1.
- Initial Funding: The account requires an initial funding of INR 10,000.
- Debit Card Fee: There is a debit card fee of INR 500 plus taxes.
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)
2.0
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)
2.0
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
3.5%
Balance Required
Zero
Special Feature
Digital banking
Interest Rate
3.5%
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.
