Zero Balance Savings Account: Interest Rate, Facilities Offered By Top Banks

A basic savings bank deposit account (BSBD) is a financial inclusion-focused zero balance savings account which, among other features, does not restrict customers to maintain any particular minimum balance each month. In other words, such an account can be operated with nil or zero balance. State-owned lender State Bank of India (SBI) and its private sector peers HDFC Bank and ICICI Bank offer a variety of zero balance accounts, such as BSBD accounts. (Also read: Top banks levy these charges for non-maintenance of required balance in savings account)

Here are key things to know about some of the zero balance savings accounts offered by SBI, HDFC Bank and ICICI Bank: 

State Bank of India zero balance saving account

Benefits

Customers get a basic RuPay ATM-cum-debit card issued against the bank account free of cost and no annual maintenance charge is applied. The credit of money through electronic payment channels such as NEFT and RTGS is free. There is no charge on activation of inoperative accounts and closure of accounts, according to the bank's website, sbi.co.in.

Interest rate

The interest rates offered by SBI on BSBD accounts are the same as those on regular savings bank accounts. For savings deposits balance less than Rs. 1 lakh, SBI offers interest at the rate of 3.5 per cent per annum. On balance over Rs 1 lakh, it offers an interest rate of 2.65 per cent per annum.

HDFC Bank zero balance saving account

Benefits

The bank issues a free passbook facility for the account holders. Customers also get free cash and cheque deposit facility at branches and ATMs, according to HDFC Bank's website, hdfcbank.com.

Interest rate

On account balance above Rs. 50 lakh and above, HDFC Bank offers an interest rate of 4 per cent. On account balance below Rs. 50 lakh, the bank pays an interest rate of 3.5 per cent.

ICICI Bank zero balance saving account

Benefits

ICICI Bank offers a Rupay card and passbook facility free of cost. The bank allows a daily spending and withdrawal limit of Rs. 10,000 each through debit cards, according to the bank's website, icicibank.com.

Interest rate

For balance lower than Rs. 50 lakh, ICICI Bank offers an interest rate of 3.5 per cent per annum. For balance over Rs. 50 lakh, ICICI Bank offers an interest rate of 4 per cent per annum.