BusinessHow Does a Zero Balance Savings Account Work?

How Does a Zero Balance Savings Account Work?


A savings account is a facility provided by the banks for people to deposit and grow their savings – with the stipulation that they will maintain a minimum amount in the account. Most banks levy monthly charges if a particular account does not maintain the minimum balance amount. However, there are still certain savings accounts that don’t mandate maintaining a minimum amount – called zero balance saving accounts. You can open it and enjoy the benefits with nil non-maintenance charge. Simply put, people with pension or low-income group need more centralized cash flexibility and for that having a zero-balance savings account is ideal.

It makes sense to opt for a zero-balance account as a person can use all the funds without needing to either close the account or keep paying the monthly charges to the bank.

Workings of a Zero Balance Account

If you a pensioner, a low-income group person or a new businessperson, this account helps you level up your accounting as you can maintain zero balance at the end of every day without worrying about paying any fees to the bank for having a below maintenance account. In many cases, people find it easier to track their financial transactions. It also helps protect against overdrafts, risks, or frauds. Consider this – if you have a parent account, you can transfer a set amount to a ZBA (zero balance account) to run your business or money flows ‘down’ or up for ‘deposits’. So, what are the benefits of such an account?

Better budget management: Depending upon the size of your monthly transactions, it is easier to manage multiple transactions from a single zero balance account or use it to streamline multiple ‘parent’ accounts.

Reduced risk: When you use the zero-balance savings account, you are basically protecting your main, ‘parent’ account with larger balance form fraud.

Centralized cash movement: You have the option to keep majority of your funds in a ‘parent’ account and use the zero balance account for the required cash movement – thus letting you take advantage of streamlined transactions.

Limited errors: When you automatically transfer a set amount from a parent account to a zero balance account monthly to manage your transactions, you are limiting the chances of errors that could happen using one parent account to manage your wealth.

Other Features:

  • Can be opened online without any paperwork
  • Customers can open these accounts digitally using their Aadhaar and PAN cards
  • KYC verification can be done with video conferencing with the bank officials – eliminating the need to physically visit the branch
  • Customers can also avail the internet banking facility
  • The debit card fee for this account is INR 500 + tax
  • Get up to 15% discount at best restaurants in your city
  • Enjoy attractive rewards by using IndusInd Bank debit card
  • You can also get up to 1 ticket for free per month on
  • Get 5% cashback from Amazon when using debit card for this account
  • Get up to 10% off on orders from Swiggy and up to INR 1000 discount off on orders from
  • Complimentary insurance of INR 35.5L with Platinum Plus debit card linked with this savings account

With a zero balance savings account, customers have the option to avail of various facilities such as remittance, overdraft, insurance, pension, etc. in an affordable manner. Whether you are a pensioner or a start up owner, having such account on your fingertips could save you a lot of time in calculating your transactions or monthly spend. Furthermore, with a nominal initial funding of INR 10,000, you can enjoy all the benefits without breaking your bank!

This type of savings account is a great option for those who do not wish to or cannot maintain a minimum monthly amount regularly.

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