Zero Balance Savings Account vs Regular Savings Account

A savings account is an interest bearing bank account where you can save your money and use it according to your requirement. You earn interest on the balance available in the account and is considered as one of the most secure ways of saving your money.

This is the the reason why savings account is the first choice for saving money and making financial transactions for many people. Different types of savings account are offered by banks to cater to different people of the society like kids savings account, senior citizen savings account, women savings account and many more. You can choose fromthem depending on the type of services and benefits that best suits you. 

While most people use a regular savings account, zero balance savings account are gaining their popularity.

Banks have started offering zero balance savings account in order to encourage citizens to open a bank account and come under the banking regulations. Under this account, there is no need to maintain a monthly minimum balance. It also comes with additional benefits and services which can vary across banks.

Let us help you by comparing a regular savings account and a zero balance savings account.

Savings Account 

One of the main features of a savings account is that you can make multiple transactions in a day and withdraw money up to a certain amount. Know Your Customer (KYC) is compulsory along with the maintenance of a minimum balance. The minimum balance requirement and the rate of interest differs from bank to bank, whether it’s a public or a private sector bank.

Zero Balance Accounts 

Zero balance can differ with each bank, a salary account is also considered as a zero balance account because there is no requirement to maintain minimum balance. Interest in such accounts is calculated based on the average balance maintained in the account. 

Along with the facility of maintaining a zero balance, many banks provide various facilities in fund transfers, card transaction rebates, free cheque book, etc. Under this account, the number of transactions is limited, unlike the regular savings account. 


So both savings and zero balance savings account has its benefits which can cater to certain requirements and preferences. So choose the best one as per your needs.

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