A savings account is an important saving option that every individual should have. We typically consider it as a yardstick of financial inclusion. One can add and withdraw money from their savings account at any time of the day. It is regarded as a safe savings option as the deposited money doesn’t depend on the stock market fluctuations, and one can earn a modest interest rate on their savings account deposits.
There are multiple ways to open a savings bank account: visiting the nearest bank branch, online account opening through the website, or downloading the bank’s official app.
It also comes with various features such as debit card, internet banking, mobile banking facilities, and simple transactions. Most of these facilities are free or come with a nominal cost. However, to avail thesefree benefits, most savings account have a minimum average balance requirement.
The minimum average balance requirement may vary from bank to bank. The minimum average balance will also depend on the type of savings account. For example, a savings account that caters to HNIs have a higher minimum average balance requirement than a regular savings account.
However, a single type of savings account may not fulfil the needs of all individuals. Banks offer different types of savings account to cater to the needs of their customers. Online zero balance savings account is a type of savings account that doesn’t have anAverage Monthly Balance (AMB), and you can open 0 balance savings account today. It means that you can open a bank account and use the entire money without worrying about paying any penalty for not keeping any money.
There are many similarities and dissimilarities between a regular savings account and an online zero balance savings account. In this article, we will see the similarities and differences between these two types of savings account.
Similarities: Regular savings account in zero balance savings account
There are many similarities between an online zero balance savings account and regular savings account, as a zero balance savings account is a category of savings account. Here are some of the main similarities between the two accounts:
- Interest rate: Banks offer interest rate to their savings account customers. Irrespective of the account type, customers receive the same interest rate on their savings account deposits. Banks calculate the interest rate on the daily closing balance, and it is credited on a quarterly basis. So, you can get the interest rate on your 0 balance savings account deposits. Kotak 811 is a zero balance saving accounts with highinterest rate.
- Internet banking: Internet banking facility enables customers to operate their account from anywhere. You can check your account details or transfer money to your friends or relatives through internet banking facilities. You need to register for internet banking facility with your bank to carry out internet banking. It is a onetime process. Online zero balance account customers can also avail internet banking facilities and carry out banking transactions from their homes’ comfort.
- Mobile banking facility: Nowadays, all banks offer mobile banking facilities to carry out banking transactions through the official bank’s mobile application. Account-holders can transfer money, request a new cheque book, block the debit card from their mobile banking application. Zero balance savings account customers can also avail mobile banking facilities and carry out financial and non-financial transactions.
- Debit Card: Debit card makes it easier to withdraw money from the bank account or use it to pay for online or offline transactions. The new debit card rules have made use of the debit card safer. However, keep in mind that physical debit cards come with an annual maintenance charge.
Differences between a regular savings account and online zero balance savings account
AverageMonthlyBalance (AMB): The main difference between a regular savings account and an online zero balance savings account is the minimum average balance requirement. While saving account hasa minimum average balance that needs to be maintained every month, a zero balance savings account doesn’t have such a requirement.
No penalty for non-maintenance of AMB: As regular balance have a minimum average balance requirement, account holders need to maintain the minimum average balance. Banks can levy penalty for non-maintenance of the minimum average balance. The penalty depends on the gap and
On the other hand, as a zero balance account comes with no minimum balance requirement, there is no penalty for non-maintenance of minimum average balance.
Account opening process: To open a regular savings account, you need to visit your nearest bank branch, fill up the required forms, and submit the required details. However, in the case of an online savings account, you don’t need to visit your nearest bank branch as you can carry out the online account opening process from the comfort of your home or office.
New to bank customers:Anyone can open a regular savings account. However, an individual who doesn’t have a prior relationship with the bank can only openan online zero savings account.
KYC process: Online zero balance savings account is opened through the Aadhaar OTP verification process. In contrast, regular savings accounts are opened after visiting the bank branch and submitting the required documents. Hence, online savings account e-KYC savings account. You have to visit your nearest bank branch or book an in-person verification appointment to complete the account’s full KYC process. After the process, one can use the account without any restrictions or limitations.
In this article, we have seen the similarities and differences between a regular savings account and an online zero balance savings account. If you want to open a savings account without any minimum average balance, you can open 0 balance savings account today.