In case you are looking to open a savings account and are confused about what kind of account you should open, it would benefit you greatly if you consider opening a zero balance account, especially for a host of advantages to such a savings account. As opposed to a minimum balance account that expects you to maintain a minimum balance beyond which you cannot dip, zero balance bank accounts require no such obligation. It is, therefore, advisable for you to go for one of these accounts for your regular expenses such a grocery shopping, paying bills, and so on. There are several advantages of having a zero balance account, and some of them have been discussed below.
There is no penalty on savings.
In the case of a minimum balance account, it becomes imperative for you to maintain a certain amount of money in your account all the time. Still, with the help of a zero balance account, you can use the money saved in your bank at any given time and in case of emergencies. Another disadvantage of these minimum balance accounts is that they penalize you for money deducted from your account if you fail to maintain the bank policy’s monthly average balance.
Ease of opening account
Banks allow their clients to open zero balance account across the country using an online process alone. Under such policies, you can open a digital bank account without paying a visit to the bank branch without any extensive paperwork to be put in place. All you will be required to do is go to the bank’s official website and fill in the online application form required for opening a zero balance savings account. You might have to upload certain documents online, beyond which you will have to await approval from the bank.
Similarity of service
While some people believe that you will not be provided with the same services like a bank account with a minimum balance because you invest no amount of money while opening your zero balance bank account, it is important to remember that such a practice is only a myth. Utilities and offers associated with the minimum balance account, such as a free debit card, passbook, checkbook, access to the Internet, and so on, are also made available with a zero balance savings account.
Rates of interest
You must be aware of the bank’s rates of interest at the end of each year. These are dependent on competitive rates of interest as maintained by banks all around the country. The interest rate offered by a bank on your digital bank account with zero balance will remain the same as that of a minimum balance account.
These are some of the most popular advantages of having a zero-balance bank account. So, what are you waiting for? If you, too, are looking to save up on a small scale, and use your savings account to meet your daily expenses, a zero balance bank account is what you need!