31 December 2023
A savings account is a useful financial tool with multiple benefits to simplify your daily life. You can pay bills, purchase daily essentials, invest in mutual funds, buy stocks, and transfer money, all the while earning interest on the deposited funds.
Despite these benefits, a major hurdle for many is the minimum balance requirement in most savings accounts. For various reasons, it may not be feasible for everyone to always keep a certain amount in their account, leading them to search for more flexible options. This is where the concept of zero-balance savings accounts becomes significant.
So, what is a zero-balance saving account exactly? It is a type of savings account that you can open without maintaining any minimum balance. With no minimum balance requirement, there are no penalties to worry about. It is also known as Basic Savings Bank Deposit Account (BSBD).
Features and benefits of a zero-balance savings account
Curious about their benefits? Continue reading below.
Fluctuating income? No more worries
A bank account with a zero minimum balance requirement is a convenient option for individuals with fluctuating income. They can be freelancers, part-time workers, students, and those in seasonal jobs. Such individuals often face challenges in maintaining a consistent cash flow and meeting the minimum balance requirements. The zero-balance account removes this concern. They can also bank easily and focus on managing their variable income without the added worry of incurring penalties for not maintaining a set balance.
Earn optimum interest
Just because you have a zero-balance savings account does not mean that you won't earn interest. Many banks offer impressive interest rates on these accounts. This aspect is particularly beneficial to those who may not have large sums to save but still wish to earn interest on whatever amount they can deposit.
Limited yet useful banking services
Zero-balance savings accounts, despite their no-minimum-balance feature, offer a lot of important banking services. You can withdraw money from ATMs, transfer funds online, use chequebooks, and leverage a mobile banking app that lets you perform banking services 24/7. These basic services cover most day-to-day banking needs, making these accounts suitable for various types of customers. They highly benefit those who do not perform complex banking activities but still require access to standard services.
Emergency fund creation
You can use a zero-balance account to save for emergency situations. The flexibility to deposit any amount, no matter how small, makes it easier for people from all walks of life to start saving for emergencies.
Those with fluctuating or unpredictable income may find this aspect more beneficial. Since there is no penalty for low balances, you can deposit money as and when you are able to. Over time, these deposits can grow into a big emergency fund that you can use to deal with temporary job loss, home renovation, vehicle repair, etc.
Attractive cashback offers and rewards
Many banks offer rewards and cashback on transactions made using debit cards. You get to enjoy discounts on food outlets, cashback on transactions, free movie tickets, complimentary insurance, and huge offers on top brands. These incentives increase the overall value of your bank account beyond just saving and earning interest.
Transform your finances with a zero-balance savings account
You can quickly open a zero-balance savings account online through IndusInd Bank’s INDIE app and avail exclusive banking services. Just download the app and enjoy a 100% paperless and hassle-free experience. The INDIE Savings Account offers a transparent approach to banking with no hidden charges. An attractive interest rate of up to 6.75% further helps your savings grow faster. Moreover, the added benefits of rewards on various purchases enhance the value of your transactions. Saving for a better future is now that simple!
