In order to cater to individual needs and requirements, banks offer a variety of customized account options. The good news is that banks provide the benefit of zero- balance account to those who do not wish to maintain a minimum balance.
As the name suggests, a zero-balance savings account does not require a Monthly Average Balance (MAB) to be maintained. This means you need not pay a penalty for not having a minimum balance, as is the case with a regular savings account.
A zero-balance bank account offers a host of features and advantages. You may open such an account and enjoy the following six benefits.
- Can be used as a secondary account
You may have an existing savings account for your financial needs. A zero-balance account may be used as a secondary account to manage your savings account more effectively.
- Helps earn good interest rates
Just like a regular savings account, you may grow and multiply your wealth through attractive interest rates. Some banks offer interest rates up to 6% per annum on a zero balance savings account.
- Saves the hassles of maintaining a minimum balance
Regular saving accounts require a minimum balance to be met on a monthly or quarterly basis. In case of non-maintenance of the MAB, banks levy a penalty. A zero balance account scores over a regular savings account in this aspect. You, therefore, need not worry about maintaining the MAB on a monthly or quarterly basis.
- Fulfills your liquidity needs
There may be times where you need cash on an urgent basis such as medical emergency or a vehicle breakdown. You may, therefore, use your zero-balance account to withdraw the required amount of cash without having to worry about maintaining a minimum balance.
- Encourages savings and investing
A bank account facilitates the disciplined habit of savings. Having an account prevents you to spend on an impulsive basis. You may, therefore, have peace of mind knowing that you have made a smart decision with your hard-earned money.
- Offers a host of other benefits
You may enjoy numerous features and benefits on your zero-balance savings account. You may request a checkbook, passbook, credit card, and debit card. Some banks also offer the benefit of a virtual debit card, where you may shop and pay bills in a few taps. Moreover, you may book movie tickets, travel tickets, and subscribe to various magazines through your account. Your zero-balance account also allows you to transfer funds from one account to another. You may transfer funds easily and quickly through IMPS, NEFT or RTGS.
The reasons to open a zero-balance account are many. You may, therefore, analyze the benefits offered and open an account at the earliest, thereby securing your financial future.