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Zero balance savings account

What Is a Zero Balance Savings Account?

Unlike most savings accounts, a Zero Balance Savings Account can be operated without maintaining a minimum balance. Technically, you are allowed to withdraw the entire balance without paying any penalty.

Banks offer these accounts for specific purposes. Salary account holders can get this type of an account primarily. Apart from that, it is also provided on the basis of Pradhan Mantri Jan Dhan Yojana (PMJDY), which is a scheme launched by the Indian Government with a mission of financial inclusion. You must inquire at the nearest banking branch to determine whether you qualify for Zero Balance Savings Account.

Features of Zero Bank Savings Account

  • You need not maintain a minimum balance for this account - neither an Average Monthly Balance or a Quarterly Average Balance.
  • You can get a free ATM or Debit card which can be used to transact worldwide.
  • You can get a free chequebook with a fixed number of leaves per year. Subsequent requests for chequebooks within a year are chargeable.
  • Complimentary passbook is included in the welcome kit that is given at the time of opening the account.
  • You get unlimited access to internet banking facilities and carry out online transactions.
  • You can make a specific number of free transactions every month and subsequent transactions are charged a nominal fee.
  • Salary account holders may receive special privileges and offers on behalf of company or institution.

Zero Balance Savings Account Under Pradhan Mantri Jan Dhan Yojana (PMJDY)

This is an ambitious mission taken up by the Ministry of Finance, Government of India. This national scheme aims at financial inclusion by providing easy access to financial services (such as Banking, Savings and Deposit Accounts, Transfers, Remittance, Credit, Pension, Insurance, etc.) to all Indian citizens at an affordable rate.

Zero Balance Savings Account Under PMJDY: Benefits

  • There is no requirement of maintaining a minimum balance.
  • Interest can be earned on deposits as per prevailing bank rates.
  • There is an accidental insurance cover of Rs.1 lakh.
  • All the direct benefit transfers from Government schemes can be credited to this account.
  • An overdraft facility can be availed after completing six months of satisfactory operation.
  • RuPay debit card can be availed.

Zero Balance Savings Account Under PMJDY: Terms & Conditions

  • The total credit in the account must not exceed Rs.1 lakh within a financial year.
  • The debit balance must not exceed Rs.50,000 at any point in time.
  • The account holder must submit all the documents as per KYC guidelines from RBI.
  • Other specific terms as per the concerned bank's policies.


  • How are zero balance savings accounts different from other savings account?

    Ans: Savings account generally require a minimum balance that is to be kept in the account, else the account holder is charged a penalty fee. This requirement is not applicable for a zero balance savings account. You can withdraw your entire account balance without paying penalty charges.

  • What is BSBDA? Are zero-balance accounts similar to BSBDA?

    Ans: BSBDA or Basic Savings Bank Deposit Accounts are offered by all banks. It does not have a minimum balance requirement. Its customers can get a debit card. BSBDA is actually a zero-balance account but the banks can also offer the flexible zero-balance facility to other types of savings accounts.

  • What are the documents required for opening a zero balance account?

    Ans: All basic KYC documents: Identity proof, age proof, address proof. You may have to submit a few additional documents as per the concerned bank's requirement.

  • What are the other benefits of a zero balance savings account?

    Ans: Most of the banks offer a free debit card, passbook as well as a chequebook with a zero-balance savings account. Some banks also offer internet and mobile banking facilities.

  • What happens to a savings account if it is not used for a long time?
    Ans: If there is no customer-initiated transaction for a specified period of time, The account will become dormant. If your account becomes dormant, the bank will not allow any ATM, internet or phone banking transactions until you reactivate the account by visiting the bank.

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