8 Benefits of a Zero-Balance Savings Account Online & How to Open One Online
Banks offer different types of accounts to cater to customers’ diverse needs. These include savings, current, and even zero-balance accounts. Each type of account has its benefits and drawbacks. However, zero-balance accounts have become quite popular today due to their massive benefits.
The Benefits of Open a Zero Balance Account Online
- No Minimum Balance Requirement
As the name suggests, one of the most significant benefits of opening a zero-balance account is that you no longer need to maintain a minimum account balance. This means that the bank will not levy any penalties, even if your account runs low on balance. Such benefits can be useful for low-income individuals, such as students, senior citizens, homemakers, etc.Â
2. Easy Access to Banking Services
Another benefit of an online zero-balance savings account is that it can be accessed online. You can use all its services directly through net banking or the bank’s mobile application. Some banks even offer 24/7 online customer service to online account holders. Moreover, you can access this account 24/7 regardless of the physical bank’s opening and closing hours.
3. Convenience of Online Account Opening
You can open a zero-balance account online, which is convenient because you do not need to visit the bank physically. This process is quick and paperless as well. The Know Your Customer (KYC) process is also done online (sometimes on video call). With a seamless online onboarding process, a zero-balance account offers the benefit of banking from home.
4. Suitable for First-Time Account Holders
If you are a first-time bank account holder, you should consider opening a savings account online. Doing this will not require you to move from counter to counter at the bank, inquiring about the next step in the application process. A bank executive guides you through the entire process online, making it easy for first-time account holders to learn.Â
5. Encourages Savings Habit
Although you cannot maintain a minimum account balance, you should open a zero-balance account online to inculcate the habit of saving. Since these accounts pay you a certain percentage of interest on your bank balance, they can be a safe source of passive wealth building, albeit at a lower rate than money market instruments. This can motivate you to save more in your account.
6.Quick and Paperless Process
Needless to say, the entire process of an online zero-balance savings account is paperless and completed online. No heavy paperwork and repeated verification are needed to open such an account. Your bank may only ask you for valid photo identification cards (such as Voter, PAN, and Aadhaar cards). Once you upload these documents, your zero-balance account is created within a short time frame.
7. Accessible Across Demographics
Furthermore, you can open a zero-balance account online from any location you desire and access it from anywhere in the world. This makes it suitable for students studying abroad, freelancers working from different geographic locations, and even social media influencers who often need to travel worldwide.
8. Integration with Government Schemes
An online zero-balance savings account is usually connected to specific government schemes like the Pradhan Mantri JanDhan Yojana. Seamless integration of such accounts with these government schemes can benefit the account holder more.
How to Open a Zero Balance Account Online?
The process of opening a zero-balance account online is quite simple.
- Visit the official website or mobile application of your preferred bank.
- Navigate to the ‘Open Account’ or ‘Zero Balance Account’ section.
- Complete the application form with basic personal and contact information.
- Upload the required identity and address documents (such as Aadhaar, Voter, and PAN cards if you apply from within India).
- Complete the e-KYC verification via OTP or video call as mandated.
- Submit the form and await confirmation. The account details are usually shared via email or SMS.
Conclusion
Considering all these benefits of an online zero-balance savings account, you can, too, begin exploring the different interest rates offered by banks for maintaining a decent account balance. So, despite being a zero-balance account, it is always recommended to top it up with some funds that can silently accrue interest.
