A savings account is an interest-bearing bank account that allows you to save money and use it as you wish as and when required. They earn interest on the available account balance and are considered one of the safest ways to save your money.
That’s why a savings account is the first choice for many people to save money and make financial transactions. Different types of savings accounts are offered by banks to cater to different needs of society such as children’s savings accounts, senior savings accounts, women’s savings accounts, and many more. You can choose from them according to the type of service and benefits that suit you best.
While most people use regular savings accounts, 0 balance accounts are gaining popularity.
Banks have started offering Zero balance savings accounts to encourage citizens to open bank accounts and comply with banking regulations. This account does not require you to maintain a minimum monthly balance. It also offers additional benefits and services that may vary from bank to bank.
Let us help you by comparing a regular savings account and a zero-balance savings account for better understanding.
No minimum balance
As the name suggests, the main advantage of a zero-balance account is that you don’t need to keep any balance in the account, and you can use the money up to the last penny available. This is considered great for staff and students. Additionally, none of the benefits saves paying the small alimony fines they would have to pay in the event of a default on a traditional savings account.
Easy to open
One traditional way is to go to a bank branch and open an account like any other savings account. Another easy and quick way is to go to the website of the bank you want to have an account with and select the Zero Balance Savings Account option. Upload an electronic copy of your document and you’re done! Your account will be up and running in a few minutes.
Mobile Banking and Net Banking
If you are a person who is busy with your work during weekdays and cannot visit the bank branch. Features like Net Banking and Mobile Banking put banks at your fingertips. Banking services are available to you with a few clicks on your mobile or laptop. This is one of the main advantages of having a zero-balance account which attracts customers.
Savings account –
Gives you liquidity
One of the main advantages of a savings account is its liquidity. You have full access to your money and can make deposits and withdrawals at any time. When you open a savings account at a bank, you get an ATM debit card. Not only can you use this card to withdraw cash 24/7, but you can also pay your grocery bills online and offline.
Your money in a savings account is completely safe in the bank. The Reserve Bank of India has strict rules to ensure the safety of money. In addition, the bank offers deposit insurance, where insurance is up to Rs 1 lakh for each savings account.
International Debit Cards
Some banks offer International Selective Savings Account Debit Cards which can be used for free cash withdrawals from ATMs overseas.
Online Transaction Features
Currently, most banks offer a net banking feature which makes daily bank account handling very convenient. You can transfer money, make fixed and recurring deposits, request a cheque book, and much more online.
Nowadays, you can easily do banking with a bank without having to go to your bank branch. Learn more about how net banking makes banking easier and how to get started with it.