Best Zero Balance Savings Account in India (2025)

What is a Zero Balance Savings Account? - A Zero Balance Savings Account is a type of bank account that does not require the account holder to maintain a minimum balance. Unlike regular savings accounts, which may penalize users for falling below a specified balance (e.g., ₹5,000 or ₹10,000), zero balance accounts allow customers to keep ₹0 without any charges.

These accounts are particularly beneficial for:

• Students

• Low-income individuals

• First-time account holders

• People who want to avoid penalty fees

Benefits of a Zero Balance Savings Account

✅ No Minimum Balance Requirement – No need to worry about penalties for low balances.
✅ Easy Accessibility – Available at most public and private sector banks.
✅ Basic Banking Features – Includes ATM/debit cards, net banking, and mobile banking.
✅ Financial Inclusion – Helps underbanked populations access formal banking services.
✅ Low or No Fees – Many banks offer zero balance accounts with minimal charges.

Who Should Open a Zero Balance Savings Account?

• Students & Young Adults – Ideal for those starting their financial journey.

• Salaried Individuals – Useful for maintaining secondary accounts.

• Senior Citizens – Helps avoid penalties if funds are low.

• Jan Dhan Account Holders – Government-backed financial inclusion accounts are zero balance.

• Freelancers & Gig Workers – Useful for those with irregular income.

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Additional Notes for Clarity

• RBI Guidelines: The Reserve Bank of India (RBI) mandates that all banks must offer a Basic Savings Bank Deposit Account (BSBDA), which is a zero-balance account with limited transactions.

• Limitations: Some zero balance accounts may have restrictions on:

• ATM withdrawals (e.g., only 3-5 free transactions per month)

• Cheque book availability (may not be free)

• Maximum balance limits (e.g., ₹50,000 in some cases)

Best Zero Balance Savings Account

2. Top Zero Balance Savings Accounts in India (2025)

1. State Bank of India (SBI) – Basic Savings Bank Deposit Account (BSBDA)

• Interest Rate: 2.70% p.a.
• Minimum Balance: Zero
• ATM Access: 5 free transactions/month (SBI ATMs)
• Digital Banking: YONO App, UPI, NetBanking
• Best For: Customers needing a trusted PSU bank with vast branch network.

2. HDFC Bank – Basic Savings Account

• Interest Rate: 3.00% p.a.
• Minimum Balance: ₹0 (after initial deposit of ₹1,000)
• ATM Access: 5 free transactions/month (HDFC ATMs)
• Digital Banking: PayZapp, Mobile Banking, UPI
• Best For: Tech-savvy users who want premium banking services.

3. ICICI Bank – Basic Savings Account

• Interest Rate: 3.00% p.a.
• Minimum Balance: Zero
• ATM Access: 5 free transactions/month (ICICI ATMs)
• Digital Banking: iMobile Pay, UPI, Video KYC
• Best For: Quick digital account opening with good customer support.

4. Axis Bank – Basic Savings Account

• Interest Rate: 3.00% p.a.
• Minimum Balance: Zero
• ATM Access: 5 free transactions/month (Axis ATMs)
• Digital Banking: Axis Mobile App, UPI
• Best For: Free debit card and easy upgrades.

5. Kotak Mahindra Bank – 811 Digital Savings Account

• Interest Rate: 3.50% p.a.
• Minimum Balance: Zero
• ATM Access: 5 free transactions/month (Any ATM)
• Digital Banking: 811 App, UPI, Fully paperless
• Best For: Fully digital banking with high interest.

6. IDFC First Bank – Zero Balance Savings Account

• Interest Rate: 3.50% p.a.
• Minimum Balance: Zero
• ATM Access: Unlimited free transactions (IDFC ATMs)
• Digital Banking: IDFC Mobile App, UPI
• Best For: No hidden charges & highest interest among private banks.

7. AU Small Finance Bank – Digital Savings Account

• Interest Rate: 4.00% p.a. (highest in the list)
• Minimum Balance: Zero
• ATM Access: 5 free transactions/month (AU ATMs)
• Digital Banking: AU 0101 App, UPI
• Best For: Highest interest rates and good digital features.

3. Detailed Review of Best Zero Balance Savings Accounts in India (2025)

3.1 State Bank of India (SBI) – Basic Savings Bank Deposit Account (BSBDA)

Features & Benefits:

• Zero Balance Requirement: No minimum balance needed.

• Interest Rate: ~2.70% p.a. (subject to change).

• Free ATM Transactions: 4 free ATM withdrawals per month (including other bank ATMs).

• Digital Banking: Free mobile banking (YONO SBI) & internet banking.

• Debit Card: Free Rupay debit card (no annual fee).

• Cash Deposit Limit: Max ₹1 lakh per year (restrictions apply).

Eligibility & Documents Required:

• Indian resident (individuals only).

• Documents: Aadhaar, PAN, Passport-size photo, address proof.

Pros:
✅ No minimum balance penalty.
✅ Wide ATM & branch network.
✅ Government-backed security.
Cons:
❌ Lower interest rate than private banks.
❌ Limited cash deposit flexibility.

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3.2 HDFC Bank – Basic Savings Account

Features & Benefits:

• Zero Balance Requirement: No MAB (for basic accounts).

• Interest Rate: ~3.00% p.a.

• ATM Access: 5 free transactions/month (HDFC + other bank ATMs).

• Digital Features: NetBanking, MobileBanking (PayZapp), UPI.

• Debit Card: Free Visa/Mastercard debit card (charges after 1st year).

Eligibility & Documents:

• Indian residents (including students).

• Documents: Aadhaar, PAN, address proof.

Pros:

✅ Premium customer service.
✅ High-interest rate for zero-balance accounts.
✅ Easy digital onboarding.

Cons:

❌ Non-maintenance fees apply if upgraded to regular savings account.
❌ Debit card charges after the first year.

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3.3 ICICI Bank – Basic Savings Account

Features & Benefits:

• Zero Balance: No MAB for basic accounts.

• Interest Rate: ~3.00% p.a.

• ATM Transactions: 5 free withdrawals/month.

• Digital Perks: iMobile app, UPI, instant account opening.

• Debit Card: Free Visa Platinum card (limited offers).

Eligibility & Documents:

• Indian residents (salaried/students/self-employed).

• Documents: Aadhaar, PAN, address proof.

Pros:

✅ User-friendly mobile app.
✅ Good customer support.
✅ Free NEFT/RTGS transactions.

Cons:

❌ Hidden charges on non-maintenance (if upgraded).
❌ Fewer rural branches compared to SBI.

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3.4 Axis Bank – Basic Savings Account

Features & Benefits:

• Zero Balance: No MAB for basic accounts.

• Interest Rate: ~3.00% p.a.

• ATM Access: 5 free transactions/month.

• Digital Tools: Axis Mobile app, UPI, WhatsApp banking.

• Debit Card: Free Visa Classic debit card.

Eligibility & Documents:

• Indian residents (including minors with guardians).

• Documents: Aadhaar, PAN, address proof.

Pros:

✅ Fast digital account opening.
✅ Good interest rates.
✅ Free cash deposits at home branches.

Cons:

❌ Penalty if balance falls below ₹2,500 (for upgraded accounts).
❌ Limited rural reach.

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3.5 Kotak Mahindra Bank – 811 Digital Savings Account

Features & Benefits:

• Zero Balance: Fully digital, no MAB.

• Interest Rate: Up to 3.50% p.a.

• ATM Withdrawals: Unlimited free at Kotak ATMs.

• Digital Features: 100% paperless, UPI, virtual debit card.

• Cash Deposit: Charges apply after 4 free deposits/month.

Eligibility & Documents:

• Indian residents (Aadhaar-linked mobile required).

• Documents: Aadhaar, PAN (video KYC).

Pros:

✅ Highest interest rate in this category.
✅ Completely digital & instant activation.
✅ Free virtual debit card.

Cons:

❌ Limited cash deposit options (charges apply).
❌ Few physical branches.

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3.6 IDFC First Bank – Zero Balance Savings Account

Features & Benefits:

• Zero Balance: No MAB.

• Interest Rate: Up to 3.50% p.a.

• ATM Access: Unlimited free transactions at IDFC ATMs.

• Perks: Free cheque book, no debit card annual fee.

• Digital Banking: WhatsApp banking, UPI integration.

Eligibility & Documents:

• Indian residents (video KYC available).

• Documents: Aadhaar, PAN.

Pros:

✅ High interest + zero balance.
✅ No hidden charges.
✅ Good for online transactions.

Cons:

❌ Limited branch network.
❌ Fewer ATMs than larger banks.

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3.7 AU Small Finance Bank – Digital Savings Account

Features & Benefits:

• Zero Balance: No MAB for digital accounts.

• Interest Rate: Up to 3.50% p.a.

• ATM Access: Free at AU Bank ATMs.

• Digital Features: Video KYC, UPI, mobile banking.

Eligibility & Documents:

• Indian residents (Aadhaar mandatory).

• Documents: Aadhaar, PAN.

Pros:

✅ Competitive interest rate.
✅ Quick online account opening.

Cons:

❌ Limited physical presence.
❌ Fewer premium features.

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Key Takeaways for Readers:

• Best for Digital Users: Kotak 811, IDFC First.

• Best for Wide Accessibility: SBI, HDFC.

• Highest Interest Rates: Kotak, IDFC, AU Bank (~3.5%).

 

4. How to Choose the Best Zero Balance Savings Account?

A zero-balance savings account is a great banking solution for students, low-income earners, and those who want to avoid maintaining a minimum balance. However, not all zero-balance accounts are the same. Here are the key factors to consider before selecting the best one for your needs in 2025:

1. Interest Rates

·         Even though zero-balance accounts may offer lower interest rates than regular savings accounts, some banks provide competitive rates.

·         Example: IDFC First Bank (up to 7% p.a. on higher balances), SBI (around 2.70% p.a.).

·         Tip: Compare interest rates across banks to maximize earnings.

2. ATM & Branch Access

·         Free ATM Withdrawals: Check if the bank offers free transactions at its own ATMs and other bank ATMs.

·         Example: SBI allows 5 free ATM withdrawals per month (including other bank ATMs).

·         Branch Network: If you prefer in-person banking, choose a bank with a wide branch presence (e.g., SBI, HDFC).

3. Digital Banking Features

·         Mobile App & UPI Support: A user-friendly app with features like UPI, bill payments, and fund transfers is essential.

·         Example: Kotak 811 and AU Small Finance Bank offer fully digital account opening.

·         Net Banking & SMS Alerts: Ensure the bank provides free alerts for transactions.

4. Debit Card Benefits

·         Some banks offer free debit cards, while others may charge for issuance or annual fees.

·         Example:

o    Rupay Platinum Card (SBI) – Complimentary insurance coverage.

o    Visa/Mastercard Debit Card (HDFC/ICICI) – Reward points on spends.

5. Hidden Charges & Fees

·         SMS Charges: Some banks charge ₹15-₹30/month for alerts.

·         Non-Maintenance Fees: Even zero-balance accounts may have penalties for dormancy.

·         Example: Axis Bank charges ₹100 + GST for non-maintenance if inactive for 12 months.

6. Customer Service & Support

·         Check reviews for customer service responsiveness (call center, chatbot, branch support).

·         Example: Private banks like HDFC and ICICI generally offer better service than PSU banks.

7. Additional Benefits

·         Discounts on Loans: Some banks offer preferential rates on loans if you hold a savings account with them.

·         Cashback & Offers: Look for partnerships with e-commerce platforms (e.g., Amazon, Flipkart)

Final Tip:

If you prioritize high interest, go for IDFC First Bank. If you want ease of access, choose SBI or HDFC. For a fully digital experience, Kotak 811 or AU Bank are great options.

5. How to Open a Zero Balance Savings Account?

Opening a zero balance savings account in India is a simple process, with options for both online and offline methods. Here’s a step-by-step guide:

A. Online Process

Most banks allow you to open a zero balance account digitally, especially neo-banks and fintech partners.

1. Visit the Bank’s Website/App
• Go to the official website or mobile app of the bank (e.g., SBI, HDFC, Kotak 811, IDFC First).
• Look for "Open Savings Account" or "Digital Account" options.
2. Choose ‘Zero Balance Savings Account’
• Select the specific zero balance account variant (e.g., SBI BSBDA, Kotak 811, AU Digital Savings).
3. Fill the Application Form
• Enter personal details (name, mobile, email, Aadhaar, PAN).
• Complete KYC (Know Your Customer) using Aadhaar-based e-KYC (OTP verification).
4. Upload Documents
• Scanned copies of:
• Aadhaar Card (mandatory)
• PAN Card (for some banks)
• Passport-sized photo & signature (if required).
5. Video KYC (If Applicable)
• Some banks (like Kotak, IDFC) require a short video call for verification.
6. Account Activation
• Post-verification, you’ll receive account details via SMS/email.
• Virtual debit card may be issued instantly for digital transactions.

B. Offline Process

1. Visit the Nearest Bank Branch
• Carry original documents for verification.
2. Request a Zero Balance Account
• Specify the type (e.g., BSBDA for PSU banks).
3. Submit Documents
• Mandatory: Aadhaar + PAN (or Form 60 if no PAN).
• Address Proof (if Aadhaar address is outdated).
4. Complete KYC & Sign Forms
• The executive will assist with paperwork.
5. Collect Account Details
• Debit card and passbook may be issued on the spot or couriered later.

C. Documents Required

• Identity Proof: Aadhaar, PAN, Voter ID, Passport.
• Address Proof: Aadhaar, Utility Bill, Rental Agreement (if address differs).
• Passport-sized Photo (for offline accounts).
• Signature Proof (pre-printed or on bank form).

D. Zero Balance Account Opening Tips

✔ Compare Banks: Check features like free ATM transactions, UPI benefits, etc.
✔ Digital-Friendly: Opt for banks with video KYC for faster processing.
✔ No Frills: Ensure no hidden charges for SMS alerts or debit card annual fees.

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Key Notes:

• Zero Balance ≠ Zero Charges: Some banks impose fees for non-maintenance if you upgrade later.
• NRIs: Cannot open zero balance accounts (requires NRE/NRO accounts).

 

6. Frequently Asked Questions (FAQs) – Zero Balance Savings Account

Q1. Can I convert my existing savings account to a zero balance account?

Yes, many banks allow conversion of a regular savings account to a zero balance account, but conditions apply:

·         SBI, HDFC, ICICI, and Axis Bank permit conversion by submitting a request at the branch or via net banking.

·         Charges/Fees: Some banks may charge a nominal fee for downgrading.

·         Minimum Balance Waiver: Your account will no longer require a minimum balance, but features like debit card charges may still apply.

Q2. Are there any hidden charges in zero balance accounts?

While zero balance accounts don’t mandate a minimum balance, some banks may have limited free transactions or fees for:

·         ATM withdrawals beyond the free limit (e.g., 3–5 free transactions/month).

·         Debit card annual fees (e.g., ₹100–200/year for basic cards).

·         SMS alerts (often ₹15–30/month if not opted out).

·         Chequebook charges (first free, then ₹2–5 per leaf).

Tip: Always check the bank’s fee structure before opening.

Q3. Which bank offers the highest interest rate on zero balance accounts in 2025?

As of 2025, small finance banks and digital banks lead with higher interest rates:

·         AU Small Finance Bank: ~4–6% p.a.

·         IDFC First Bank: ~4% p.a.

·         Kotak 811: ~3.5–4% p.a.

·         Public Sector Banks (SBI, PNB): ~2.7–3% p.a.

Note: Rates vary based on daily/monthly balance slabs.

Q4. Can NRIs/PIOs open a zero balance savings account in India?

No, zero balance accounts are typically for resident Indians only. NRIs/PIOs must open:

·         NRE/NRO Accounts: These require a minimum balance (usually ₹5,000–10,000).

·         Exceptions: Some banks like SBI offer NRO accounts with low balance requirements (e.g., ₹1,000).

Q5. Is a zero balance account safe for salary deposits?

Yes, but check these features:

·         Auto-conversion risk: Some banks auto-convert zero balance accounts to regular accounts if salary exceeds a limit (e.g., ₹1 lakh/month in SBI).

·         Employer tie-ups: Corporate salary accounts often have zero balance benefits.

Q6. Can I get a debit card with a zero balance account?

Yes, but:

·         Most banks provide a basic Rupay debit card (free or with annual fees).

·         Upgrades: Visa/Platinum cards may require a minimum balance.

Q7. Do zero balance accounts offer net banking and UPI?

Yes, all major banks provide:

·         Full net banking/mobile banking access.

·         UPI, IMPS, NEFT without restrictions.

·         Exceptions: Dormant accounts may face limited access.

Q8. What happens if I don’t use my zero balance account for months?

·         Dormancy: Inactive for 12+ months may attract penalties (e.g., ₹100–500/year).

·         Revival: Visit the branch or use net banking to reactivate.

Q9. Can I link my zero balance account to investments (FDs, mutual funds)?

Yes, you can:

·         Open fixed deposits (FDs) linked to the account.

·         Invest in mutual funds/SIPs via net banking.

 

7. Conclusion

Choosing the best zero balance savings account in 2025 depends on your banking needs, accessibility, and additional perks like digital features, customer service, and ATM networks. Here’s a quick recap of our top recommendations:

Summary of Best Picks

1.      SBI Basic Savings Account (BSBDA) – Best for widespread accessibility (rural/urban) and government-backed reliability.

2.      HDFC Basic Savings Account – Ideal for premium services, mobile banking, and ATM availability.

3.      ICICI Basic Savings Account – Great for tech-savvy users with robust digital banking features.

4.      Kotak 811 Digital Account – Top choice for completely online, paperless account opening.

5.      IDFC First Bank Zero Balance Account – Best for high interest rates and low fees.

6.      AU Small Finance Bank Digital Account – Excellent for customers seeking high-tech banking with zero balance flexibility.

Final Recommendations

·         For Students/Young Adults: Kotak 811 or AU Digital Account (hassle-free, app-based).

·         For Rural Areas: SBI BSBDA (maximum branch reach).

·         For High Interest + Low Fees: IDFC First Bank.

·         For Premium Services: HDFC or ICICI (better customer support).

Pro Tips

✔ Always check hidden charges (e.g., SMS fees, ATM limits).
✔ Compare interest rates (typically 2.5–4% p.a. for zero balance accounts).
✔ Opt for banks with user-friendly apps if you prefer digital banking.

Zero balance accounts are a smart way to bank without the stress of maintaining minimum balances, especially for students, freelancers, and beginners. Pick the one that aligns with your lifestyle and financial goals!