These days, one of the most common practices for carrying out any financial transaction is to do it online. In order to do that, you need to have a savings account. Banks also provide various types of savings account depending on the minimum balance requirement for account maintenance. However, it is a person’s choice to opt for either a zero balance savings account or a normal savings bank account, based on their requirement.
What is a savings account exactly?
A savings account is a bank-provided deposit account into which you can easily deposit your funds. Banks usually provide a savings account with the condition that you keep a certain amount of money in the account, otherwise, you will be charged with maintenance cost.
Here are some of the key features of having a savings account:
- It has a high transaction limit
- Know Your Customer compliance (KYC) is mandatory for such accounts
- A minimum balance must be maintained for such accounts, which may vary across different banks
What is a zero balance savings account?
If you want to open a zero balance account, the procedure can differ from one bank to another. In fact, salary accounts are also sometimes called zero balance savings account as there is no requirement of minimum balance maintenance. The basic concept is simple – you can open a savings account; however, you are not required to keep a minimum balance in it.
Here are some of the main features of a zero balance savings account:
No requirement for minimum balance
As the name suggests, this account is a zero-balance account. Therefore, there is no penalty even if the balance is zero. This is the key attraction for many customers when it comes to opening this type of account.
Easy mode of transaction
You can also use this account to make payments using a variety of net banking options. Further, you can also use this account to pay for your utilities such as phone, water, and electricity bills.
Facility for mobile banking and net banking
You can use net banking to view your bank statements as well as transfer and receive money. And all this you can do from your computer or smartphone.
There are many banks out there ready to offer a variety of savings accounts irrespective of whether you are a homemaker, salaried individual, student, or business owner. While both these types of accounts have their unique features, it is always better to first understand your requirements and then opt for one.
