Unlike regular savings bank accounts, Zero balance account doesn't require customers to maintain a Monthly Average Balance.
If you don’t want to maintain the monthly average balance (MAB) in your savings bank account, then it is better for you to opt for a zero balance account. As the name suggests, in a zero balance saving account, customers are not required to maintain any minimum average balance, unlike a normal bank account. From state-run State Bank of India (SBI) to ICICI and HDFC Bank all banks offer the option of opening a zero balance savings account these days. Regular savings bank accounts require bank customers to maintain a certain monthly average balance (MAB). Monthly Average Balance is a sum of all the end-of-day closing balance divided by the number of days in that month. However, if you opt for a zero balance savings account with any of these banks, you do not have to maintain a minimum balance for it. Zero balance bank accounts also provide the usual facilities that come with a regular savings bank account.
If you are planning to open a zero balance account, find out the interest rates and facilities offered by these banks:
For a zero balance account, ICICI Bank offers an interest rate at 3.5 per cent for an amount below Rs 50 lakh and 4 per cent for Rs 50 lakh and above. The interest payable on these accounts is half-yearly. If you do not have an existing ICICI Bank savings account, you can also open a basic savings bank deposit account. The bank also provides a debit card and a cheque book free of cost.
State Bank of India (SBI)
For a zero balance account, SBI offers interest rate at 3.5 per cent for an amount up to Rs 1 crore and 4 per cent for Rs 1 crore and above. SBI offers Basic Savings Bank Deposit Account under which you can open an account and maintain zero balance. There are no additional charges applicable on this account. There is also no upper limit set on the deposit of money and the account holders get RuPay debit card with the account. However, the account holder cannot have another savings account with the bank if they want to open a zero balance account.
Standard Chartered Bank
For a zero balance account, Standard Chartered Bank offers an interest rate at 3.5 per cent for an amount up to Rs 50 lakh and 4 per cent for Rs 50 lakh and above. The Standard Chartered Aasaan zero balance account is a digital account. The bank also provides free multicity checkbooks and debit card which can be used for ATM withdrawals.
For a zero balance account, Axis Bank offers an interest rate at 3.5 per cent for an amount up to Rs. 50 lakh. The bank offers 4 per cent for an amount ranging between Rs 50 lakh and Rs 100 crore, and 6 per cent above Rs 100 crore. Axis Bank’s zero balance ASAP account can be opened instantly just by providing a mobile number, Aadhaar and PAN details. With a zero balance account, you also get auto-sweep Flexi FD on balances above Rs 1,000. However, this account comes with a capping of maximum Rs 1 lakh that can be deposited in the account. But if you convert this account into a fully KYC account, the restrictions of the maximum account balance are lifted.
For a zero balance account, HDFC Bank offers an interest rate at 3.5 per cent for an amount up to Rs 50 lakh, and 4 per cent for Rs 50 lakh and above. Similar to other banks, with the basic savings bank deposit account, you can open a zero balance account. The benefit of free-of-cost IVR-based phone banking facility and RuPay debit card is given to the customer with an option to upgrade it into an international debit card.