Top Reasons to Open a Zero-Balance Account

Once you start earning, owning a Bank Account becomes a necessity. It acts as a safe place where you park your hard-earned money. It offers instant access to your funds and facilitates quick transactions. But a regular Bank Account requires you to maintain a minimum balance. Not everyone can comply with this criterion.

For such individuals, a Zero-Balance Account serves as a viable option. It lets the holder freely operate the account without maintaining a minimum balance. This way, they need not pay maintenance fees even if their account balance goes nil. The following are the reasons why having such an account is beneficial:

  1. No minimum balance requirement

The main feature of a Zero-Balance Account is the absence of a minimum balance requirement. This implies that the holder does not have to maintain a Monthly Average Balance or MAB.

  1. Free ATM/Debit Card facility

After the online Account opening, you receive a free ATM or Debit Card. It can be used worldwide for any transaction.

  1. Free cheque book & passbook

A free chequebook and complimentary passbook are also issued to you. The passbook usually comes as a part of the starter kit when you open the Account. However, applying for a new chequebook requires a nominal fee.

  1. Easy transactions

This type of account offers facilities like regular Bank Accounts. You get to make payments through net banking options. You even get the option of paying for utilities online through the account.

  1. Internet banking

When you open a Zero-Balance Account, you enjoy internet banking facilities like online transactions and payments.

  1. Competitive interest rates

Many banks offer high-interest rates on deposits in a Zero-Balance Savings Account. However, the percentage varies between banks. It is better to check the rates beforehand by contacting customer service.

  1. Overdraft facility

An overdraft facility is a financial instrument. It permits you to withdraw money from your account, even when you have no balance in it. This facility becomes available to you when you open the account. However, you can avail of it only after six months of satisfactory account operation.

  1. Demand draft facility

The holder may issue a demand draft free of charge through the account. This feature enables them to make payments without having to pay service fees. It also comes in handy during emergencies.

  1. Insurance cover

Some banks offer Accidental Insurance cover to the Zero-Balance Account holder. The amount of the cover may go up to Rs. 1 lakh. Also, it is provided free of charge. Hence, it would help to look for reliable banking partners to enjoy such perks.

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