5 Best Zero Balance Account in India 2021

Are you planning to open a Zero Balance Account in India? Well, then you have come to the right place. Zero Balance Account has many advantages, and there are many Best Zero Balance Bank Account in India to choose from.

In this post, I will tell you about five of the best Zero Balance Account in India options. So, stick to the post till the end for good clarity on the topic.

Best Zero Balance Account in India

What is a Zero Balance Account?

Before we get to the different Zero Balance Account options in India, it’s important to understand what a Zero balance account is. Unlike a regular savings account, a Zero Balance Account doesn’t need you to maintain any minimum balance.

Besides, it doesn’t even charge any card maintenance and account maintenance charges from the users. Most importantly, you can create one of these accounts online without having to visit the bank. You can have such an account as a wallet or your main bank account.

Best Zero Balance Account in India

  • Kotak Mahindra Bank
  • Federal Bank
  • IndusInd Bank
  • Equitas Small Finance Bank
  • IDFC Bank

1. Kotak Mahindra Bank

Kotak Mahindra Bank

In our personal view, the Kotak Mahindra Bank has the best zero balance account in India 2021. It has been around since 2003, and the bank offers customers 811 Digital Bank Account. The 811 Digital Bank account comes with many advantages, and it starts right from the Zero charges on non-maintenance of balance. Isn’t that cool?

Besides, the bank offers an interest of 3.50% per annum, and you also get a virtual debit card for free. Apart from this, you have the convenience of easy money transfer and online payments.

As far as the process of creating a Kotak 811 account goes, it’s pretty simple. You have the convenience of creating a Kotak 811 account right from your home using a browser and a working internet. The entire process can be completed online without having to visit your bank branch.

The process involves filling in the Kotak registration form and uploading the KYC documents. Besides, you will need to complete your Video KYC over a video call. Before you start, you must keep the following documents things handy:

  • The mobile number linked with your Aadhar card
  • Aadhar Card
  • PAN Card

Rate of Interest

Includes Senior Citizen too

Domestic (W.e.f. Jun 19, 2021)

  • 3.50% p.a. on balance up to Rs. 1 lakh
  • 4% p.a. on balance above Rs. 1 lakh up to Rs. 50 Lakh,
  • 3.50% p.a.* on balance above 50 Lakh

Basic Savings Bank Deposit Account/Small Account (W.e.f. Jun 19, 2021)

  • 3.50% p.a. on balance up to Rs. 1 lakh
  • 4% p.a. on balance above Rs. 1 lakh up to Rs. 50 Lakh,
  • 3.50% p.a.* on balance above 50 Lakh

Non Resident (NRE/NRO)

  • 3.50% p.a.

2. Federal Bank

Federal Bank

Federal Bank is our second choice which has an excellent zero balance account in India as of 2021. It started way back in 1931 in Nedumpuram and is a huge name in Indian Private Sector Banking. Federal Bank gives you the convenience of opening a Zero Balance Savings account, and it’s called FedBook Selfie. There are no minimum balance charges and account maintenance charges for FedBook Selfie.

Once you create a FedBook Selfie, you can use it just like any regular Federal savings account. You can use it to transfer money to other accounts and make online payments. FedBook Selfie users can have three free branch transactions at the max every month, and beyond that, the bank will charge them Rs.25 + GST (up to a maximum of Rs.100 per day).

Internet Banking is entirely free. Users can have a debit card with zero Issuance charge. However, it’s important to bear in mind that the bank charges an annual charge of Rs 150 on Debit cards.

Opening a FedBank Selfie account is exceptionally simple, and there are two ways you can go about it. You can either have a FedBank Selfie account by visiting your nearest Federal Bank branch, or you can proceed with an E-KYC account.

When you choose E-KYC, you can have an account opened with your Aadhar OTP. However, you will also have to submit self-attested copies of your Aadhaar and PAN card within eleven months from the date of opening your account.

Rate of Interest

  • Less than ₹5 Crores: 1.50% below RBI’s Repo Rate
  • ₹5 Crores and above: 1.50% below RBI’s Repo Rate for an amount up to and including ₹1 Lakh or 0.20% below RBI’s Repo Rate for the remaining balance above ₹1Lakh

3. IndusInd Bank

IndusInd Bank

IndusInd Bank has easy operations to open a zero balance account in India 2021. It was founded in 1991 and is headquartered in Mumbai. IndusInd Bank is yet another bank that allows customers to open Zero Balance Account. The Zero Balance Savings Account in IndusInd Bank is called Indus Delite.

The Indus Delite account has no minimum balance requirement. However, you will need to make initial funding of Rs 10,000. The bank also charges a debit card fee of Rs 500 plus taxes.

The Indus Delite account has attractive cashback offers on many major eCommerce platforms. Besides, Indus Delite helps you earn 6x Rewards on your Debit Card Spends.

Creating an Indus Delite account is ridiculously simple. You will have to first verify through your Aadhaar and PAN card. Besides, you will have to fill in some important details. This is followed by video KYC verification. After that, you can fund your account. Before you go ahead with the verification process, you must keep the following things ready:

  • The mobile number linked with your valid Aadhaar card
  • Physical copy of PAN card
  • Camera facility on Mobile/Desktop

Rate of Interest

Savings Bank Account Interest Rate Domestic / Non-Resident (NRO/NRE)

  • Daily balance up to Rs. 10 Lakh: 4%
  • Daily balance above Rs.10 Lakhs: 5%

4. Equitas Small Finance Bank

Equitas Small Finance Bank

Equitas Small Finance Bank is the most popular zero balance account in India. It was started in 2016 and is headquartered in Chennai. Equitas allows customers to open a Zero Account Balance account. After you create an account, it’s not mandatory to maintain any minimum balance. Equitas Zero balance account comes with free 24/7 fund transfer and rewards points with every debit card spent.

Equitas doesn’t charge you any maintenance charges. Besides, users get a free Rupay debit card. Another cool thing is that Equitas allows you to specify the numbers you want to have in your account number. Further, users can earn up to 7% interest on their savings in Equitas.

Opening a zero balance account with Equitas is very simple. You can complete the entire process online. You can start by filling in the Equitas online account opening form and uploading your documents.

You will need to keep your Aadhaar card and PAN card handy along with the mobile phone linked to your Aadhaar card before starting the process. Besides, you will need to complete video KYC to enjoy all the features.

Rate of Interest

Daily closing balance with its corresponding rate of interest

  • up to Rs 1 Lakh – 3.50%
  • Above Rs 1 lakh and up to Rs 1 cr: 7%
  • Above 1 cr: 6%

5. IDFC First Bank

IDFC First Bank

IDFC First is one of our favorites to open a zero balance account in India 2021. Bank was founded in 2015 and has its headquarters in Mumbai. IDFC First is another great option if you are looking to open a Zero balance savings account. The bank doesn’t charge for the non-maintenance of the required balance. However, uses will need to fulfill the initial payment requirement of Rs 250.

The account comes with a Visa Platinum Debit Card, for which it charges an issuance fee of Rs 100. Besides, the bank charges an annual debit card fee of Rs. 100. Visa platinum’s annual debit card fee is much more reasonable since banks like HDFC charge Rs 800 per year for a Visa Platinum Debit card, which is way higher than IDFC.

The account gives you 5 free ATM transactions every month at any ATM in India. The bank charges Rs 20+taxes from the 6th transaction onward in a month. NEFT and RTGS are completely free.

As far as the process of opening an IDFC First Zero Balance Account goes, it’s not complicated at all. However, you must keep your Aadhaar card, PAN card, and your mobile number linked with your Aadhaar card handy ahead of starting the registration process.

Rate of Interest

Savings Bank Account Interest Rate Domestic / Non-Resident (NRO/NRE)

  • Balance below 1 lakh: 4%
  • Balance above 1 lakh and below ten lakhs: 4.5%
  • Balance above ten lakhs and below two cr: 5%

In case if you need to know more info about banking or investing, have a look at our site SmartFinder.

Final Words

Opening a zero balance account is a convenient way to cultivate the habit of saving and is an ideal way for students to start an account. Besides, a zero balance account comes with excellent benefits like no maintenance fee plus free debit card and more.

Zero balance accounts also offer a good rate of interest. Even if you have regular bank accounts, getting a zero balance account can be useful for making online payments as that way, you can have to keep your main bank account details private.

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