Nowadays, having a Bank Account is not only compulsory but also beneficial in many ways. It ensures the safety of all the account contents, such as money, jewellery, essential documents, etc. The RBI introduced a new facility for Bank Account holders and is continuously encouraging people to deposit their valuables in their accounts for security purposes.
A Basic Savings Account is a zero-balance one where customers need not maintain a minimum balance compulsorily. It is offered by most banks equipped with facilities like a free Debit or ATM Card, and a passbook. Withdrawals, however, are limited as per the rules of the RBI. Here are a few things you need to remember before online Saving Account opening zero-balance:
No double accounts
Account holders cannot open another account in the same bank. If a customer holds another account, it is supposed to be withdrawn within 30 days from the date of opening.
Fixed Deposits
Customers can open other accounts such as Term Deposits, according to the mandate.
Services offered
Services offered under such Savings Accounts include cash deposits/withdrawals and receipts/credits of money through electronic modes of payment like ATMs.
No initial deposits
For opening an account with zero balance, you need not deposit any security or collateral with the bank.
Better facilities
Banks can offer many more facilities than those prescribed. However, the decision rests with the bank’s management.
Withdrawal limits
If the account holder carries out more than four withdrawals or chequebook requests at additional costs, the facilities of the account close.
No additional costs
If the bank holding the Savings Account does not charge any additional fees for the extra facilities, then, according to the bank, they can also be classified as Zero-Balance Accounts.
Free passbooks
As directed by the RBI, the account holder gets a free passbook facility upon opening the account.
Conversion
At the account holder’s request, a regular Savings Account can be converted into a zero balance. The consent should be submitted in writing to the bank, and the bank should explain all the account’s features and services.
Balance enquiries
If you use the ATM to check the balance of your account, it is not counted as a transaction and is free of charge.
The best part is that the documents required for the Savings Account are minimal. These accounts are easy to maintain as they cause no hassle to customers. This facility also allows Salary Accounts to be opened.