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Zero balance savings account: Here is what top banks offer

Updated : 2019-06-04 13:38:39

Banks offer a zero balance account as an alternative to individuals who do not wish to maintain the monthly average balance (MAB) in their savings bank account. Nowadays, starting from State Bank of India (SBI) to HDFC Bank, almost every bank is offering the option of opening a zero balance account. Other savings accounts requires a bank to maintain a monthly average balance (MAB), which is a sum of all the end-of-day closing balance divided by the number of days in that month. Here are the top banks in which you can open a zero balance account:

1. ICICI Bank: The bank provides an interest of 3.5 percent for an amount deposited below Rs 50 lakh and 4 percent for Rs 50 lakh and above, for a zero balance account. The interest payable is half-yearly. The bank also provides a debit card and cheque book, for free of cost. (Image: Reuters)
1. ICICI Bank: The bank provides an interest of 3.5 percent for an amount deposited below Rs 50 lakh and 4 percent for Rs 50 lakh and above, for a zero balance account. The interest payable is half-yearly. The bank also provides a debit card and cheque book, for free of cost. (Image: Reuters)
2. State Bank of India: SBI offers Basic Savings Bank Deposit Account under which you can open a zero balance account. The bank offers a 3.5 percent interest rate for an amount up to Rs 1 crore and 4 percent for Rs 1 crore and above. The account holder also gets a RuPay card with the account. However, the account holder cannot have another savings account with the bank if they want to open a zero balance account. There is no cap on the maximum deposits made in the account. (Image: Reuters)
2. State Bank of India: SBI offers Basic Savings Bank Deposit Account under which you can open a zero balance account. The bank offers a 3.5 percent interest rate for an amount up to Rs 1 crore and 4 percent for Rs 1 crore and above. The account holder also gets a RuPay card with the account. However, the account holder cannot have another savings account with the bank if they want to open a zero balance account. There is no cap on the maximum deposits made in the account. (Image: Reuters)
3. HDFC Bank: The interest rates offered by HDFC bank on zero balance accounts are 3.5 percent on Rs 50 lakh, and 4 percent on Rs 50 lakh and above. You can open a basic savings bank deposit account. The bank also provides with a free-of-cost IVR-based phone banking facility and RuPay debit card with an option to upgrade it into an international debit card. (Image: Reuters)
3. HDFC Bank: The interest rates offered by HDFC bank on zero balance accounts are 3.5 percent on Rs 50 lakh, and 4 percent on Rs 50 lakh and above. You can open a basic savings bank deposit account. The bank also provides with a free-of-cost IVR-based phone banking facility and RuPay debit card with an option to upgrade it into an international debit card. (Image: Reuters)
4. Axis Bank: Axis Bank’s zero balance ASAP account can be opened instantly just by providing a mobile number, Aadhaar and PAN details. Along with a zero balance account, Axis Bank also provides you with an auto-sweep Flexi FD on balances above Rs 1,000. However, this account comes with a capping of maximum Rs 1 lakh that can be deposited in the account. But if you convert this account into a fully KYC account, the restrictions of the maximum account balance are lifted. The bank offers 3.5 percent interest rate on Rs 50 lakh, 4 percent on the amount ranging Rs 50 lakh and Rs 100 crore and 6 percent over Rs 100 crore. (Image: Reuters)
4. Axis Bank: Axis Bank’s zero balance ASAP account can be opened instantly just by providing a mobile number, Aadhaar and PAN details. Along with a zero balance account, Axis Bank also provides you with an auto-sweep Flexi FD on balances above Rs 1,000. However, this account comes with a capping of maximum Rs 1 lakh that can be deposited in the account. But if you convert this account into a fully KYC account, the restrictions of the maximum account balance are lifted. The bank offers 3.5 percent interest rate on Rs 50 lakh, 4 percent on the amount ranging Rs 50 lakh and Rs 100 crore and 6 percent over Rs 100 crore. (Image: Reuters)
5. Standard Chartered Bank: The Standard Chartered Aasaan zero balance account offers 3.5 percent for an amount up to Rs 50 lakh and 4 percent for Rs 50 lakh and above. It is a digital account with free multicity checkbooks and debit card. (Image: Reuters)
5. Standard Chartered Bank: The Standard Chartered Aasaan zero balance account offers 3.5 percent for an amount up to Rs 50 lakh and 4 percent for Rs 50 lakh and above. It is a digital account with free multicity checkbooks and debit card. (Image: Reuters)
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