Fri. Mar 29th, 2024

Being able to park hard-earned money in a safe place and see it grow can be extremely rewarding. But most savings accounts require you to maintain a minimum balance. Failing to do so can attract penalties and additional charges. 

But what if you could get savings account benefits without meeting the minimum balance criteria? Well, you can explore a zero-balance account. Opening such an account allows you to enjoy numerous benefits. Let’s look at some of these.

  1. Customers Need No Minimum Balance

Eliminating the need to maintain a minimum balance is one of the most significant benefits an account holder enjoys with a zero-balance account. Opening this account means you can withdraw every last rupee to meet your expenses without worrying about the penalty charges.

  2. Customers Enjoy Easy Operation of Account

Customers do not need to take trips to the bank or stand in long queues for a zero-balance account. One can simply visit their chosen bank’s official website, fill out a form, and upload the necessary documents. Once their account is activated, they can manage their funds from the comfort of their home through facilities such as net banking and mobile banking.

  3. Customers Earn Interest

Customers earn interest on their zero-balance accounts. Opening one will mean they don’t just park their funds safely but also allow them to grow. This makes it an excellent option for people looking to start their financial journey on a solid footing. 

However, interest rates on zero balance accounts vary from bank to bank. So, customers must compare these to find the best offer.

  4. Customers Benefit from Rewards and Offers

With a zero-balance account, customers enjoy benefits such as cashback, reward points, discounts on movie tickets, dining experiences, and the like. On payment of a nominal fee, they can get a debit card for convenient cash withdrawal from ATMs. 

Further, some banks also offer complimentary insurance upon opening an account. This makes a zero-balance account ideal for mid-income groups looking to get the most out of their banking decisions.

  5. Customers Can Set Up E-Mandates

Banks offering zero-balance accounts also set up e-mandates for increased ease of banking. Customers with recurring expenses can automate their bill payments securely. By giving the necessary instructions to the bank, customers can avoid late payment fines on recurring expenses.

To Sum Up

A zero-balance account helps account holders manage their funds without worrying about any penalties or charges from the bank. This also allows them to use their money more freely and independently. 

This type of account is especially beneficial to mid-income groups. This is because some banks offer lateral facilities like insurance that provide added security assurance. Additionally, they can access every last rupee of their hard-earned money without worrying about bank charges. 

The terms and conditions for opening a zero-balance account vary from bank to bank. And so do the interest rates. Besides, the benefits and the rewards offered differ too. And so, customers must compare these to find the best fit for them.

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