Zero Balance Savings Accounts of SBI Vs HDFC Vs ICICI Vs SCB Vs Axis Bank; Know features, interest rates, facilities

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June 28, 2019 6:24 PM

While the regular savings bank account requires the customers to maintain a certain monthly average balance (MAB), there is no need to do so with a zero balance account.

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If you want to open a savings account with any bank and want to do away with the formality of keeping the minimum balance in it, then you can opt for a zero balance account. For, bank customers are not required to maintain any minimum average balance with a zero balance saving account, unlike a normal bank account. Big banks such as ICICI, HDFC and state-run State Bank of India (SBI) offer the option of opening a zero balance savings account. While the regular savings bank account requires the customers to maintain a certain monthly average balance (MAB), there is no need to do so with a zero balance account.

Monthly Average Balance (MAB) is calculated by adding all the end-of-day closing balance divided by the number of days in that month. If you open a savings account with any of the banks that offer zero balance accounts, you do not have to maintain a minimum balance for it. Zero balance accounts provide similar facilities that come with a regular savings account.

If you are also planning to open a zero balance account, know what are your options and the interest rates and facilities offered by banks:

State Bank of India (SBI): SBI offers an interest rate of 3.5 per cent for a zero balance account, for an amount up to Rs 1 crore, above which the interest rate is 4 per cent. The Basic Savings Bank Deposit Account by SBI offers you to open an account and maintain zero balance. If a customer wants to open a zero balance account with the bank, the account holder cannot have another savings account with the bank.
This bank account does not come with any additional charges. Also, there is no upper limit on the deposit you make. The account holders also get a RuPay debit card with the account.

Standard Chartered Bank: SCB offers 3.5 per cent interest rate on a zero balance account, for an amount up to Rs 50 lakh, above which the interest rate is charged at 4 per cent. The zero balance account of Standard Chartered is a digital account, known as the ‘Standard Chartered Aasaan’. The bank provides multicity checkbooks and debit card for ATM withdrawals, for free.

ICICI Bank: ICICI Bank offers an interest rate of 3.5 per cent for a zero balance account, for an amount below Rs 50 lakh, above which the interest rate charged is 4 per cent. On these accounts, the interest is paid half-yearly. You need to open a basic savings bank deposit account if you do not have an existing ICICI Bank savings account. The account comes with a debit card and a checkbook for free.

Axis Bank: Axis Bank offers an interest rate at 3.5 per cent for a zero balance account, for an amount up to Rs 50 lakh. For an amount ranging between Rs 50 lakh and Rs 100 crore, the bank offers 4 per cent, above that 6 per cent. Axis Bank’s zero balance account is known as the ‘ASAP account’. This account can be opened instantly just by providing the customer’s mobile number, PAN and Aadhaar.
On balances above Rs 10,000, you also get auto-sweep Flexi FD, with a zero balance account. Flexi Fixed Deposit feature is enabled on a customer’s Axis ASAP account by default. Through the auto FD feature ASAP customers earn higher interest rates when their account balance crosses Rs 10,000. This money is liquid and is available for withdrawal anytime.

HDFC Bank: HDFC Bank offers an interest rate of 3.5 per cent for a zero balance account, for an amount up to Rs 50 lakh, above which the interest rate is 4 per cent. Similar to other banks, to open a zero balance account you need to open a basic savings bank deposit account. You can also opt for IVR-based phone banking facility and RuPay debit card free of cost with an option to upgrade it into an international debit card in the future.

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