Zero-Balance Account FAQs answered!
A Deposit Account held at a bank which provides principal security, a high degree of liquidity, and a modest interest rate, is called a Savings Account. The funds are considered the most liquid investment besides cash. Savings Accounts are thus ideal for keeping emergency money or money for daily expenses that you might need later.
A Bank Account is the key business of commercial banks in India. To open it, you need Online Banking mediums, fill out a form, upload the necessary documents, and select the right account. You can compare options based on interest rates, minimum balance requirements, and other facilities. Here are frequently asked questions on this product:
How to choose a Savings Account?
Factors you need to consider while selecting a bank to open a Savings Account include the interest rate offered on your deposit, the minimum balance required to maintain your account, customer service, and branch availability. A bank that offers the best combination of these factors should be opted for when opening the account.
What are the documents required?
If you are interested in Zero-Balance Account opening online, you need to keep the necessary documentation ready for submission, such as two latest passport-sized photographs, address and identity proof, like Aadhar Card and passport, and additional address proof documents if your mailing and residential addresses differ.
Are there any age restrictions?
No restrictions are imposed about an individual's age or income at the time of opening a Savings Account. There, however, may be different minimum balance requirements based on the type of Savings Account. For example, if you want to open a Zero Balance Account in a bank, you do not need to maintain a minimal balance.
Are there penalties for non-maintenance of minimum balance?
When you open a Bank Account with zero-balance, the bank does not charge any penalty or fees for not maintaining the minimum balance. For operational accounts with a balance lower than the prescribed minimum balance amount as per the account type, the bank is liable to charge a non-maintenance fee as per their procedures and the Service Tax and Education Cess at the applicable rates.
At what rate will you earn interest on the remaining balance?
The rate at which the bank calculates the interest in a Savings Account is usually between 3% to 4% per annum. Interest earnings get credited to your account every six months, which is calculated monthly or on an average daily balance basis.
Is there a facility to open a Joint Account?
Opening a Joint Account is the same as having a Savings Account. The only difference is that two people will operate it instead of one. If you are above 18 years, you can open a Joint Account. Minors can also open them with one of their parents as the other signor of the account.