Want To Open A Zero Balance Savings Account? Here's What Top Banks Offer

A BSBD or basic savings bank deposit account is a type of zero balance savings account which does not require customers to maintain any particular minimum balance. In other words, the account can be operated with zero 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. Customers get a number of facilities such as debit and ATM cards and internet banking with BSBD account.

Here are key points to know about SBI, HDFC Bank zero balance savings accounts: 

State Bank of India 

Customers can open a BSBD account on a single, joint or either-or-survivor basis at SBI, according to the bank's 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.

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

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 2.65 per cent per annum.

HDFC Bank

Resident individuals, Hindu undivided families are eligible to open HDFC Bank's BSBD account. However, customers should not hold any other savings account with the bank. 

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. The bank issues a free passbook facility for the account holders. Customers also get free cash and cheque deposit facility at branches and ATMs.

3. Customers get four free withdrawals per month including ATM, RTGS, NEFT, clearing, branch cash withdrawal etc. In case of more than four withdrawals in a month, HDFC Bank converts the BSBD account into a regular savings account.

4. Customers also 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

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, the bank pays an interest rate of 3.5 per cent.