A zero-balance savings account is a bank account that allows the account holder to keep their money in the bank in return of a modest interest.
It is a combination of a savings account and a current account. This means that an account holder will have limits on withdrawal amounts, but he/she will not be charged any penalty from the bank if the account’s balance falls below a particular prescribed amount, also known as minimum balance.
A zero-balance account allows you to do all transactions like a normal savings bank account would. This includes:
- Earning interest on account balance
- Net banking
- Issuance of ATM-cum-debit card
- Electronic clearing services (ECS) for bill payments, EMIs and investments.