A savings account is a traditional form of investment that provides a safe place to park your funds and grow them gradually. Hence, you can save money for a rainy day while generating healthy returns.
However, many traditional savings accounts require you to maintain a minimum monthly balance that can be challenging for some. If you wish to open a savings account without the hassle of maintaining a minimum balance, consider a zero balance savings account!
What is a Zero Balance Savings Account?
Generally, banks require account holders to maintain a monthly average balance (MAB). If you fail to do so, the bank levies a penalty. But, as the name suggests, a zero balance account is a type of savings account where the monthly balance rule does not apply. Hence, you don’t have to worry about maintaining an average monthly balance even as you enjoy the benefits associated with the account.
Most leading banks offer zero balance accounts, along with additional facilities like online banking, and more. Keep reading to learn the top benefits offered by a zero balance savings account.
Advantages of a Zero Balance Savings Account
Apart from being a safe haven for your hard-earned money, a zero balance account also gives you plenty of privileges.
1. No Minimum Balance
The biggest advantage of a zero balance account is that you don’t need to maintain a minimum balance. Hence, you can keep your funds safe while spending and transacting according to your needs.
2. High Interest Rate
With a zero balance savings account, you can not only start saving money but also put it to work. You can invest your idle money and earn modest returns on it. Thus, it is a secure savings option that also grows your money in the long run.
3. Banking Facilities
When you open a zero balance account, you get access to services such as free ATM withdrawals, debit card, online banking, mobile banking, and more. These make your day-to-day transactions convenient and quick.
4. Locker Facilities
A bank locker facility is useful for keeping jewellery and important documents secure. Many banks provide bank lockers with zero balance accounts. All you have to do is to opt for the facility and pay a nominal fee to store your valuables in a safe deposit.
5. Additional Privileges
Lastly, you can also avail of special privileges such as rewards on spending, free IMPS/RTGS transaction, etc. These extra benefits and rewards make zero balance accounts an attractive deal for customers.
A zero-balance savings account is an excellent way to save money without worrying about breaching minimum balance requirements. These accounts provide you with the usual attractions of a savings account but without the obligation of maintaining a specific balance in your account. What’s more, they encourage you to spend wisely and manage your finances better. So, enjoy all these benefits by opting for a zero-balance savings account today!