Best Banks for Zero Balance Accounts
Last Updated : June 17, 2025, 6:35 p.m.
A zero-balance savings account is an ideal choice for individuals seeking flexibility without the burden of maintaining a minimum balance, avoiding penalties, and ensuring accessibility. In 2025, several banks in India offer zero-balance savings accounts, particularly public sector banks, private banks, and small finance banks, catering to students, low-income individuals, and rural customers.
Below is a detailed analysis of the best zero-balance savings accounts, focusing on interest rates, digital banking capabilities, branch/ATM networks, and additional features, based on the latest data from reliable financial sources.
What Are Zero Balance Savings Accounts?
A zero-balance savings account is a type of bank account that does not require the account holder to maintain a minimum balance to avoid penalties or fees. Unlike traditional savings accounts, which often mandate a minimum average balance (e.g., ₹5,000 or ₹10,000 in urban areas), zero balance accounts allow customers to keep any amount, even ₹0, without incurring charges. These accounts are designed to promote financial inclusion, making banking accessible to students, low-income individuals, rural customers, and those with irregular incomes.
In India, zero-balance savings accounts are offered by public sector banks, private banks, and small finance banks, often under schemes like the Pradhan Mantri Jan Dhan Yojana (PMJDY) or digital banking initiatives.
Key Features of Zero Balance Savings Accounts
- No Minimum Balance Requirement : No penalties for maintaining a balance below a specified threshold.
- Interest Rates : Earn interest on deposits, typically ranging from 2.70% to 7.50% p.a., depending on the bank and balance slab.
- Accessibility : Often includes free debit cards, basic ATM withdrawals, and digital banking services like UPI.
- Financial Inclusion : Targeted at underserved groups, such as rural residents, students, or low-income earners.
- RBI Regulation : Deposits up to ₹5 lakh are insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC), ensuring safety.
Benefits of Zero Balance Savings Account
- Flexibility : Ideal for those unable to maintain a minimum balance due to fluctuating income.
- Cost-Free : Avoids non-maintenance penalties (e.g., ₹600/quarter at some banks like HDFC).
- Digital Access : Many zero balance accounts (e.g., Kotak 811, SBI BSBDA) offer mobile apps for transactions and account management.
- Inclusivity : Supports government initiatives like PMJDY, providing banking to unbanked populations.
Top Zero-Balance Savings Accounts
Below are some of the top zero-balance savings accounts in India.
| Bank | Features |
|---|---|
Free RuPay debit card or international debit card Fund transfers through NEFT and RTGS IVR-based phone banking Four free cash withdrawals at other bank ATMs | |
Basic KYC documents are required. The account includes a free debit card, four free cash withdrawals from other bank ATMs, and unlimited free cash withdrawals from SBI ATMs. | |
Free RuPay debit card with a cash deposit limit of up to Rs. 10,000 . Includes four free transactions at other bank ATMs each month. | |
Indian citizens aged 18 and above are eligible for a free debit card, passbook, and chequebook. They also receive 5 free transactions each month and free fund transfers via NEFT and RTGS. | |
Internet and mobile banking, along with a free chequebook, passbook, and debit card. | |
Customers can invest in fixed deposits with a maximum deposit limit of Rs. 1 lakh per account. To continue using the account after one year, customers must submit their signatures. | |
Kotak Mahindra Zero Balance Account (Kotak 811) | Customers can use mStore to shop online Fund transfers through NEFT and RTGS Free virtual debit cards Scan and pay option |
Free RuPay debit card Free passbook and cash deposits Single and joint accounts are available Customers can access 15,000+ ATMs all over India | |
YES Bank Zero Balance Account | Avail attractive interest rates Free RTGS and NEFT payment facilities International Platinum Chip Cards can be availed Free demand drafts |
DBS Zero Balance Account | Unlimited withdrawals can be made in a month Free chequebooks Unlimited deposits can be made in a month Free debit card |
Documents Required to Open a Zero Balance Savings Account
Identity Proof (Any one of the following):
- Aadhaar Card (preferred, especially for e-KYC and PMJDY accounts).
- PAN Card (mandatory for most banks; optional for PMJDY if unavailable).
- Valid Passport.
- Voter ID Card issued by the Election Commission of India.
- Valid Permanent Driving License.
- Job Card issued by NREGA, duly signed by a State Government officer.
- Letter issued by the National Population Register or UIDAI containing name and address.
- Form 16 (if PAN is unavailable, issued by the employer to show TDS deduction).
Address Proof (Any one of the following, can be the same as identity proof):
- Aadhaar Card (linked to registered mobile number for OTP verification).
- Valid Passport.
- Voter ID Card.
- Valid Permanent Driving License.
- Utility Bill (electricity, water, gas, etc., not older than 3 months).
- Rental Agreement (registered).
- Job Card issued by NREGA.
- Letter issued by the National Population Register or UIDAI.
Conclusion
Opening a zero balance savings account in India in 2025 requires minimal documentation, typically an Aadhaar Card, PAN Card, or other identity/address proofs like a passport or voter ID, along with a few passport-sized photos. Banks like SBI, AU Small Finance, and Kotak Mahindra simplify the process with online e-KYC or branch visits, ensuring accessibility for all, especially under PMJDY. Always verify specific document requirements with the chosen bank, as they may vary slightly, and confirm eligibility (e.g., no existing BSBDA in the same bank). These accounts offer flexibility, no penalties, and essential banking services, making them ideal for students, rural customers, and those with irregular incomes.
Frequently Asked Questions (FAQs)
