Seven Benefits of Keeping Money in a Zero Balance Savings Account
Zero balance savings accounts have been the talk of the town for quite a few years. And for all good reasons. Consider a bank account where you can withdraw money whenever you want without thinking twice. Yes, this is true for zero balance accounts. You are not required to maintain a minimum balance, as is the case with most savings accounts. Today, we’ll go over the reasons why they’re the best option for everyone. So, let us get started.
1: Easy account opening process
Gone are the days when you had to wait in queues to submit forms and then wait for verification to finally open and access your bank account. The best part is that you can instantly open this account on your own through digital means. To open a bank account online with zero balance, you only need a microphone and camera equipped device with a stable internet connection. For documents, PAN card and Aadhaar details are the two main identity proofs you will need to show.
2: Affordable and accessible
First things first, you do not need to pay an initial deposit amount, unlike other savings bank accounts. So, there are no fees associated with opening the account. Furthermore, there are no maintenance charges, which lessens your financial burden. In fact, there are financial institutions that relax fees on transfers, which enhances your total banking experience.
3: Advantage of digital banking services
Whether it is mobile payments or making investments, you can do it all with a zero balance savings account. This is beneficial for making transactions without having to visit the bank branch. If you are someone who prefers online banking, this is the ideal choice for you. You can enjoy facilities such as UPI, RTGS, NEFT, IMPS and more.
4: Access to exclusive offers, discounts and cashbacks
Many banks offer zero balance savings accounts with a wide range of rewards in the form of cashbacks and discounts on your spending. For instance, some Debit Cards give points on every purchase, which you can redeem later on food and beverages at PVR outlets or book movie tickets. Such exclusive deals truly give you a rewarding experience.
5: Attractive returns on your account balance
Banks do offer competitive interest rates on zero balance savings accounts. For instance, if you have a higher balance in your account, you will be receiving the interest accordingly. So, if you want to develop a savings habit and build your money, make regular deposits and prevent letting your bank balance fall below zero.
6: Set up automatic bill payments
With an e-mandate setup, you can authorise the bank to make payments on recurring bills and other expenses automatically. It is a great way to keep a habit of making payments on time. This way, you won’t miss a payment. For instance, you can set up an auto-debit facility on credit card payments. You can either opt to pay the minimum due or the total outstanding, depending on your personal situation.
7: Make investments
Whether it is a fixed or recurring deposit, you can book them easily with a zero balance account. This provides you with guaranteed returns and higher returns on investments, encouraging you to save and build wealth for the future. Many banks also offer credit against fixed deposits (FDs), which is a smart way to meet your financial needs without breaking your FD and incurring a penalty.
Endnote
Remember that zero-balance savings accounts have limitations on withdrawals, a cap on the number of free transactions per month, charges for physical debit cards, and chequebook issuance fees. You can only have one zero-balance savings account. So, review and compare the options different banks provide to choose the ones that align with your needs.
Zero balance savings accounts are an ideal choice if you are a beginner. It helps you learn the basics without having to maintain a minimum balance. So, start early and maximise the benefits of a zero balance savings account.
