You may have several purchases and payments to make in a day. Imagine carrying a significant amount of cash to manage them. This would be a hassle and bring about safety concerns. You would look for a viable, secure, and convenient alternative to managing your purchases and payments. In that case, you can consider opening a Bank Account.
There are different types of Bank Accounts. Each is suitable for meeting specific banking requirements. Opening a Savings Account is ideal if you conduct day-to-day banking transactions. The account lets you save money, earn interest, and conduct other transactions. Use the Savings interest calculator to estimate the interest earnings you can reap from the account.
Savings Accounts can further be classified into various types. The Zero Balance Savings Account is a popular type you must explore. The account does not require you to maintain a minimum balance, allowing you to spend money without restrictions. The following is a mention of the things you should know before opening a Zero Balance Savings Account:
Account opening
You can open a Zero Balance Savings Account with any bank. You must meet basic eligibility for account opening. You can open the account by filling out the account opening form and submitting Know Your Customers documents. You can do this by visiting the nearest bank branch or through online platforms.
After you apply for it, the bank will take a reasonable time to verify the form details and KYC documents. They will open the account only when they are satisfied with the verification.
RBI limitation
The Reserve Bank of India regulates account opening and operations at all banks. It has also laid down rules and regulations. You can opt for a Zero Balance Account opening online only once. You cannot choose to open another Zero Balance Savings Account with the same bank.
Deposits and withdrawal limits
All banks require you to follow a deposit and withdrawal limit. The limits differ from one bank to another. You can learn about it by contacting the bank’s customer representative or checking their website or app.
Ideally, you should consider opening a Zero Balance Savings Account with a bank following higher deposit and withdrawal limits. It allows you to make all kinds of transactions without too many hassles.
Minimum balance requirement
The primary benefit of opening a Zero Balance Account online is that it does not require you to maintain a minimum balance. However, it is subject to a set of conditions. To keep the account operational, the bank will require you to maintain a basic balance of Rs. 200 per month or Rs. 2,000 per annum.
