Facts You Should Know About Zero-Balance Savings Account

[Shashank Bhaskar]

We all need a Bank Account for parking our savings for conducting different financial transactions. A Savings Account is the first account you open, through which you gradually build your life savings. Usually, most people either hold joint or minor accounts with their parents, which gets converted to a regular account by the time they turn 18.

However, a Zero-Balance Account is the first individual account you can open. But before that, learn some facts about it.

Meaning

Zero-Balance Accounts, also called Salary Accounts, is the one your company opens for you. They tie up with a specific bank to offer this and deposits your monthly income in it. The account gets credited with your income on a particular day of the month. Besides your income, the organisation also deposits variable pay like monthly incentives, yearly bonuses, cash rewards, etc.

Why called Zero-Balance?

It is called Zero-Balance because there are no limitations on withdrawing the sum parked in the account. You can remove every money deposited by your organisation in your account without worrying about maintaining any average monthly balance, which is otherwise a requisite when you open a Bank Account. However, always check the bank's daily withdrawal limit before removing all the cash held in the account.

Basic facilities offered

Banks typically provide plenty of services like those offered with a regular online Bank Account. For instance, you receive a chequebook, passbook, and ATM or Debit Card. Primarily, banks provide an instant kit when you open Salary Accounts. You get all the Online Banking details in the same. You need to set up the account, and only then can you do online transactions using NEFT, IMPS, RTGS, etc.

Additional services

Every ATM or Debit Card comes with extra services, over and above the accessible ones. For instance, you may get a Debit Card with a high daily withdrawal limit or high daily shopping access. You may also get additional rewards and cashback for every transaction done over the card. If you draw higher monthly income in your account, they also offer facilities like fuel surcharge, complimentary airport lounge access, free movie tickets, and more.

What happens when organisations do not provide Zero-Balance Account?

Relatively small companies do not offer Zero-Balance Accounts. However, if the employees of the companies wish to open account for income deposits, they can approach a bank offering them relevant documents that involve employment and income proofs. Visit your preferred bank offline or via the Banking app with the offer letter and most recent salary slips.

The bank also needs your organisation's recent letter to validate your designation and monthly income. Once the bank opens the account, share the Zero-Balance account details with your organisation and enjoy similar facilities.