There are many people who knowingly or unknowingly have to pay hefty penalty to the banks for not maintaining the Monthly Average Balance or MAB in their bank accounts. If you have a savings account in any bank then it is mandatory to maintain a monthly average balance in it. However, many people forget this thing especially those with multiple saving bank accounts.
In a zero balance account, the account holder is not required to maintain any minimum average balance, unlike in normal savings accounts. The best thing is that anybody can open a zero balance account. People, who usually forget to maintain their monthly average balance in bank accounts, must opt for a zero balance account, as here they will not have to pay heavy fines. Zero balance bank account gives normal facilities just like savings account.
Here are the interest rates and facilities offered by banks on Zero balance accounts:
Zero Balance Account in SBI
For amount up to Rs 1 crore and above, State Bank of India offers 4% interest rate for a zero balance account and 3.5% for up to Rs 1 crore. Depositors will have to open a Basic Savings Bank Deposit account under which they can open an account & maintain zero balance. No upper limit is set on the deposits and it does not come with any extra charges. In a zero balance account, you also get a RuPay debit card.
Zero Balance Saving Account in HDFC
HDFC Bank offers an interest rate of 3.5% for an amount up to Rs 50 lakh and 4% for Rs 50 lakh and above. A person must not have any other banking relationship with the Bank at the time of opening BSBDA Small Accounts (Basic Savings Bank Deposit Small Account). HDFC zero balance account comes with the benefit of RuPay debit cards as well as free-of-cost IVR-based phone banking facility. The card can also be upgraded into an international debit card.
Zero Balance Saving Account in ICICI
For the amount below Rs 50 lakh, the ICICI bank offers an interest rate of 3.5 % and for Rs 50 lakh and above it gives 4%. The interest payable is half-yearly on these accounts and it comes with a debit card & a cheque book. You may open a basic savings bank deposit account if you do not have an existing ICICI Bank savings account.
Zero Balance Saving Account in Axis Bank
Axis bank provides an interest rate at 3.5% for an amount up to Rs. 50 lakh for a zero balance account. For an amount ranging between Rs 50 lakh - Rs 100 crore, Axis bank offers an interest rate at 4%. For an amount above Rs 100 crores it gives 6% interest rate. The Axis Bank’s zero balance account can be opened instantly by providing a valid mobile number, Aadhaar and PAN Number. Depositors will also get auto-sweep Flexi FD with a zero balance account, on balances more than Rs 1,000, which comes with a deposit limit of maximum Rs 1 lakh in the account.
Zero Balance Saving Account in Standard Chartered Bank
Standard Chartered Bank offers an interest rate of 3.5% for amount up to Rs 50 lakh for a zero balance account and 4% for Rs 50 lakh and above. The ‘Aasaan’ zero balance account of Standard Chartered is a digital account that provides free multicity cheque books & debit card, to the account holder
More details can be obtained from the official website of each bank or you may visit the nearest branch.
