Manage Money

Zero Balance Savings Account
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Savings bank accounts require you to maintain a balance up to a certain level. If your balance goes below this minimum amount, you can be penalized by the bank in the form of penalty charges. These could be a bother to pay each and every month. These charges can be monthly or quarterly, depending on the rules of your particular bank. As to the nature of the charges themselves, the amount can be a fixed one, or a certain percentage of the shortfall, or a mix of both.

Do you hold a savings account at one of the nation’s top private sector banks? If yes, then you know that the minimum balance to be kept ranges from Rs. 5000 to Rs. 10,000. A lot of people are finding it hard to keep the minimum balance in this pandemic. They need money for other essential things, yet if the minimum balance is not kept, there are monetary penalties. This is the dilemma many people are facing in this pandemic situation. The situation is worse for those out of work or those facing salary cuts.

Zero balance savings account

In such a situation, there is still hope in the form of Zero Balance Savings Accounts. A Zero Balance Savings Accounts Zero Balance Savings Account is one in which you do not need to keep a minimum balance. You can withdraw the whole balance whenever you want and maintain a Zero balance. There is therefore a whole lot of flexibility here. Banks won’t charge you anything if you have this type of account.

Which banks can give you a Zero Balance Savings Account?


  • SBI

  • HDFC

  • Federal Bank

  • Bandhan Bank

  • Kotak Mahindra

  • IDFC Bank

How to open a Zero Balance Savings Account?

To open one such account, you need to be: 

  1. An Indian citizen

  2. Over 18 years of age

Another criterion most banks follow is that you should not have a normal savings account at the same bank. If you do have one, you need to close the normal savings account within 30 days of opening a Zero Balance Savings Account. In some banks, the rules are more strict. For instance, they need you to close the other account before applying for a Zero Balance Savings Account.

Banks like Kotak Mahindra and ICICI Bank that allow you to open this type of account from their website or from their own mobile app. All you need to do is fill the necessary details like KYC information, and you’re all set!

Alternatively, you can always visit the nearest branch to open this account.

Can Zero Balance Savings Accounts be opened jointly?

Yes, it is quite possible and you can appoint a nominee for your account.

Are there any transactional limits for Zero Balance Savings Accounts?

Yes, there are.

  1. The average of all credit in the financial year should not be more than Rs. 1 lakh. If it is more, you cannot get any further credit until that year is over.

  2. Your account balance should not be more than Rs. 50000. If it is, you cannot carry out any more credit transactions till the balance goes down that amount.

  3. Monthly withdrawals should not be more than Rs. 10000.

What does a Zero Balance Savings Account joining kit contain?

The kit contains:

  1. A Ru-Pay basic ATM-cum debit card

  2. Net banking facility

  3. Mobile banking facility

  4. Pass book

 Are there any withdrawal frequency charges?

Banks allow 4 cashless transactions free per month. This includes withdrawals from the bank’s own ATMs or from the ATMs of other banks, from over the counter from the bank’s branch, or from the Aadhar Enabled Payment System. Charges are applicable from the 5th withdrawal. SBI charges Rs. 15 + GST per additional transaction. HDFC charges Rs. 150+GST for the same.