Banks are proposing innovative options to better serve customers in today’s quickly changing financial environment. The introduction of zero-balance accounts is one such innovation.
Today, more individuals now opt for zero-balance accounts. It has been a great help to millions of individuals who did not want to maintain a bank balance or had limited access to banking services.
Moreover, such bank accounts will allow more people to join the financial system and access banking services. But the biggest question is what a zero balance account is, and what is the eligibility of zero balance account opening?
What is a Zero Balance Account?
A zero-balance account is a banking account that allows you to avail of banking facilities without the need to maintain a bank balance.
What is the Type of Zero Balance Account?
There are different types of zero-balance accounts, each with benefits and purposes. They are as follows:
- Regular Zero-Balance Account
It is a basic savings account that does not require any minimum balance. It is simple to use for routine transactions without worrying about keeping a set balance.
- Online Zero Balance Account
This account is suitable for those who prefer carrying out banking online. You can open and manage it online without going to a physical bank. It works just like a regular zero-balance account but with the added convenience of digital banking services.
- Joint Zero-Balance Account
This account lets two or more people, like family members or business partners, share the account. Each person can access and use the account equally. It is excellent for managing shared expenses without keeping a minimum balance.
- Pradhan Mantri Jan Dhan Yojana (PMJDY) Account
It is a government scheme. It provides banking facilities to all citizens. The account can be opened with zero balance and offers benefits like insurance coverage, overdraft facility, etc.
Features of a Zero Balance Account
By opening an online zero-balance account, you can avail of the following features:
- Easy Account Opening
Opening a zero-balance account is easy. Banks usually ask for minimal documentation so you can start your account quickly without any trouble.
- Basic Banking Services
With this account, you can still use essential banking services like depositing money, taking out cash, transferring funds, and getting account statements, just like a regular savings account.
- Suitable for All
Zero balance accounts are suitable for different people, such as students, those with low incomes, or anyone who wants a simple account without worrying about keeping the minimum amount of money.
Eligibility Criteria to Open a Zero Balance Account
Before digital bank account zero balance, you must meet the following eligibility criteria:
- You must be 18 years old or above.
- You must be an Indian citizen.
- You’ll need valid identification documents.
Who Should Open a Zero Balance Saving Account?
The following individual must consider zero balance account opening:
A zero-balance savings account is suitable if you are a student with limited allowance or income. It allows you to manage your money without the burden of maintaining a minimum balance.s
- Limited-Income Earners
For individuals with a limited income or irregular cash flow, it offers the convenience of not worrying about maintaining a specific amount in the account.
- Occasional Users
A zero-balance account can serve your needs without extra costs or commitments if you need an account primarily for small transactions or occasional use.
Opening a zero-balance account offers a convenient and hassle-free banking solution. However, before selecting, you must analyse your banking needs and compare the features different banks offer. Moreover, it is crucial to note that each bank might have its benefits and policies related to zero-balance accounts. You must understand them before choosing one.
By embracing such modern banking options, you can stay ahead in today’s fast-paced world and effectively manage your money quickly and flexibly. Also, you must remember that with the latest solutions comes the responsibility of prioritising the security of your account by using strong passwords and staying vigilant against potential online threats.