Zero Balance Savings Account

A Zero balance savings account ensures you won't face minimum balance requirements. Enjoy hassle-free banking with no worries about maintaining balances.
Zero Balance Savings Account
3 min

Banks offer different types of products to customers to help boost saving habits. A zero balance savings account or ZBA is a common type of no minimum balance account introduced to foster savings without the strings of maintaining a minimum balance.

Also Read: EPF Balance Check

What is a zero balance savings account?

A zero balance savings account is exactly what the name suggests. It is simply a type of savings account where you do not have to maintain a minimum balance. As per the RBI, banks now offer a Basic Savings Bank Deposit Account (BSBDA) with no minimum balance requirements

How does a zero balance savings account work?

Usually, banks apply a quarterly average balance or QAB (Quarterly Average Balance) policy for regular savings accounts. QAB requirements can range from Rs. 500 to Rs. 5,000, depending on the bank, account type, and geographic location. When the balance in your savings account does not meet the prescribed QAB limit, the bank levies a non-maintenance charge on the account. However, the QAB policy is not applicable on zero balance savings accounts. In other words, you do not have to maintain a minimum amount in such accounts.

Also read: How to Check PPF Account Balance

What are the benefits of maintaining a zero balance savings account?

  • No penalties: No penalties are levied on account holders for failing to maintain a minimum balance in the account. This ensures flexibility, allowing you to withdraw the entire sum when needed without worrying about incurring extra charges.
  • Easy payments: You can conveniently make digital payments via net banking. You can even use electronic payment gateways to transfer funds and make payments. Each zero balance savings account comes with a free debit card that can be used to make ATM withdrawals as and when needed.
  • Extra benefits: Generally, banks offer add-on perks like international debit cards, free issuance of demand drafts, free cheque books, and free passbooks with zero balance savings accounts.
  • Interest earnings: Interest rates applicable on most zero balance savings accounts stand at par with regular savings accounts. Thus, you can earn interest on your saved funds and access them whenever needed, without minimum balance concerns.
  • Financial inclusion: Zero balance savings accounts boost financial inclusion. They make banking services accessible to those who cannot maintain a minimum balance in the account. They help bring banking services to customers from low-income backgrounds and rural areas.

Eligibility criteria for a zero balance savings account

Most banks use the following common eligibility parameters:

  • Applicants must be 18 years of age
  • Applicants must be Indian citizens

Note:  Eligibility criteria can vary depending on the bank’s policies.

Also read: National Savings Scheme

How to apply for a zero balance savings account

Once you have selected the right zero balance savings account, you simply need to follow these steps:

Step 1: Visit the bank’s website.

Step 2: Under ‘Accounts’, select the ‘Zero balance savings account’ option.

Step 3: Fill-up the online application form with the correct details.

Step 4: Scan and upload copies of your KYC documents (identity and address proof).

Step 5: Review and submit the form.

Alternatively, you can also visit a bank branch and apply for the account in-person. Talk to a bank representative about opening a zero balance savings account, fill-up the physical application form and submit copies of your KYC documents for verification.

Note: The application process may vary among different banks.


Zero balance savings accounts offer a convenient and accessible way to store your money, especially if you don't have a large sum to set aside or need flexibility.  Before opening one, carefully compare interest rates, transaction limits, and any other features offered by different banks to find the account that best fits your financial needs.

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As regards deposit taking activity of Bajaj Finance Ltd (BFL), the viewers may refer to the advertisement in the Indian Express (Mumbai Edition) and Loksatta (Pune Edition) furnished in the application form for soliciting public deposits or refer
The company is having a valid Certificate of Registration dated March 5, 1998 issued by the Reserve Bank of India under section 45 IA of the Reserve Bank of India Act, 1934. However, the RBI does not accept any responsibility or guarantee about the present position as to the financial soundness of the company or for the correctness of any of the statements or representations made or opinions expressed by the company and for repayment of deposits/discharge of the liabilities by the company.

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