Zero Balance Savings Account: Interest Rate, Facilities Offered By SBI, HDFC Bank

BSBD or basic savings bank deposit accounts do not restrict the customer to a particular minimum balance each months. Also known as zero balance accounts, the basic savings bank deposit accounts do not require the account holder to ensure any particular average of daily balances over a period of time. In other words, such accounts can be operated with nil balance. Major commercial banks such as public sector lender State Bank of India (SBI) and its private sector peer HDFC Bank offer zero balance accounts such as BSBD accounts. 

Here are key points to know about BSBD (basic savings bank deposit) accounts in top banks today: 

State Bank of India (SBI) BSBD account

One can open a BSBD account on a single, joint or either-or-survivor basis at SBI, according to the bank's corporate website, sbi.co.in. An SBI basic savings deposit account can be opened by any individual with valid KYC (Know Your Customer) documents.

Benefits of SBI's BSBD account

1. A basic RuPay ATM-cum-Debit card is issued free of cost and no annual maintenance charge is applied, according to the SBI portal.

2. The receipt or credit of money through electronic payment channels such as NEFT is free.

3. The deposit or collection of cheques drawn by central and state governments is free.

4. There is no charge on activation of inoperative accounts and closure of accounts.

5. A maximum of four withdrawals/transactions in a month are allowed. This includes ATM withdrawals at ATMs of SBI and other banks, and NEFT, RTGS and cash transactions at branches.  No further customer debits are allowed during the month, according to SBI.

Interest rates of SBI's Zero Balance Savings Account (BSBD)

The interest rates offered by SBI on BSBD accounts are the same as those on regular savings bank accounts. For savings deposits balance less than Rs 1 lakh, SBI offers an interest rate of 3.5 per cent per annum. On balance over Rs. 1 lakh, it offers an interest rate of 3.25 per cent per annum.

Other benefits of HDFC Bank's BSBD account

1. Customers get a safe deposit locker and super saver facilities, according to HDFC Bank's portal, hdfcbank.com.

2. HDFC Bank issues a free passbook facility for BSBD account holders and customers also get free cash and cheque deposit facility at branches and ATMs.

3. Customers get four withdrawals free per month including ATM, RTGS, NEFT, clearing, branch cash withdrawal etc. In case of more than four withdrawals in a month, HDFC Bank would convert the existing BSBD account into a regular savings account and all rules and charges as per regular savings account would be applicable, the bank said.

4. Customers get free lifetime BillPay, InstaQuery, and e-mail statement facilities.

5. HDFC Bank also offers net banking, phone banking and mobile banking facilities with BSBD account. 

Interest rates of HDFC Bank's Zero Balance Savings Account (BSBD)

On account balance above Rs. 50 lakh and above, HDFC Bank offers an interest rate of 4 per cent. On account balance below Rs. 50 lakh, HDFC Bank pays an interest rate of 3.5 per cent.