A Brief Comparison of Zero-Balance and Savings Account
More people have started opening Bank Accounts online. A Zero-Balance Account and a Savings Account are the most popular.
Banking has become relatively more straightforward these days. It does not involve lengthy and monotonous procedures like before. With a few simple clicks, any issue of yours gets resolved virtually. Hence, more people have started opening Bank Accounts online. It is more convenient and efficient that way.
Of the various Bank Accounts people opt for, a Zero-Balance Account and a Savings Account are the most popular. Although both serve the same banking function, they have slightly different features. Thus, people often get confused between the two. If you are one of them, fret not. Here is a brief comparison of the two for better understanding:
Zero Balance Account
This type of Savings Account does not mandate a minimum balance. They can spend all the funds in their account if need be. Here are its other salient features:
A Zero Balance Account is accessible to everyone. This includes low-salaried individuals to students who have not started earning yet. There are also no complicated eligibility criteria. The only requirement is that the holder should be 18 years and above. This is unlike the online Savings Account opening process, where more standards are involved.
2. Free Chequebook
You receive a complimentary chequebook and passbook when you open a Zero Balance Account. However, you are expected to pay a reissuing fee in case of a new chequebook.
3. Insurance Cover
In most cases, banks offer Accidental Insurance Cover in Zero-Balance Accounts. This amount may go up to Rs. 1 lakh, depending on your bank’s policies.
4. Maintenance Fee
As you do not have to maintain a minimum balance, no maintenance fee is involved. The bank does not charge you for utilising all the money in your Zero-Balance Account.
An interest-bearing Bank Account retains the funds that you do not plan on spending now. The following are the prominent features of this account:
A Savings Account does mandate the maintenance of a minimum balance. Thus, it is accessible mainly to salaried individuals.
2. Interest Earnings
The holder gets an amount as interest for a set number of deposits they make. This way, they yield interest earnings.
3. Maintenance Fee
If the holder spends beyond the minimum balance, the bank charges them. The amount that they must pay is called the maintenance fee.
A Savings Account facilitates all online and physical transactions. This includes online money transfers, ATM deposits, etc.