Zero minimum balance account: A basic savings bank deposit account does not require a customer to maintain a minimum monthly average balance also.
A basic savings bank deposit (BSBD) account does not require any minimum balance. This account that is generally meant for poor sections of society offers interest rates similar to normal savings bank accounts. A BSBD account does not require a customer to maintain a minimum monthly average balance also. Key banks like State Bank of India (SBI) and Punjab National Bank (PNB) offer the facility of opening this zero minimum balance account. Private sector lenders like HDFC Bank, ICICI Bank and Axis Bank also offer the facility of this account.
With this zero minimum balance account, SBI aims to encourage poor sections of society to start saving without feeling the burden of charges or fees, it says on its website sbi.co.in. This account can be opened by any individual provided he/she has valid KYC documents. KYC or know your customer helps banks verify their customers.
Opening of SBI BSBD account: A BSBD account is available at all branches of SBI and can be opened singly, jointly, or with either or survivor, former or survivor, anyone or survivor etc. facility.
Withdrawal from SBI BSBD account: SBI customers can withdraw from BSBD accounts using withdrawal forms at branches or through ATMs. A basic RuPayATM-cum-debit card will be issued to them, which can also help them withdraw money.
Interest rates on SBI BSBD accounts:Interest rates on BSBD accounts are the same as on savings bank accounts. For saving deposits balance up to Rs. 1 crore, SBI deposits fetch 3.50 per cent per annum interest rate. For saving deposits balance above Rs. 1 crore, SBI pays interest rate of 4 per cent per annum.
Service charges of SBI BSBD account: A basic RuPay ATM-cum-debit card will be issued free of cost and no annual maintenance charge will be applied, SBI said.
Receipt/ credit of money through electronic payment channels like NEFT/RTGS is free.
Deposit/ collection of cheques drawn by central/state government will be free.
A maximum of four withdrawals are allowed in a month, including ATM withdrawals at own and other bank's ATMs and transactions through other modes including RTGS/NEFT/clearing/branch cash withdrawal/transfer/internet debits/standing instructions/EMI, etc. No further customer debits would be allowed during the month, said SBI.
"Meet all your banking needs the easy way with this savings account and get a free debit card!" HDFC Bank said about BSBD accounts on its website, hdfcbank.com. Besides these, HDFC Bank customers can avail other features of BSBD accounts, such as bill payment options, statements and alerts. HDFC Bank also offers special features under BSBD account, such as the option of an international debit card and safe deposit locker.
HDFC Bank offers free passbook facility for all individual account holders.
HDFC Bank BSBD account holders enjoy free cash and cheque deposits at branches and ATMs.
Customers can access their HDFC Bank BSBD account with their free Rupay Card.
Four free transactions are allowed per month including ATM/RTGS/NEFT/clearing/branch cash withdrawal/ transfer/internet debits/ standing instructions/EMI, etc. In case of more than four withdrawals in a month, the bank would convert the existing BSBD account into regular savings account and all rules and charges as per regular savings account would be applicable.
Free lifetime BillPay, free InstaQuery and free e-mail statements are also offered, said HDFC Bank.
Cheque book, passbook issuance, balance enquiry, balance certificate, interest certificate, TDS certificate, account closure, activation of dormant account, cash deposits, phonebanking - IVR, Rupay card, BillPay, InstaAlerts, NEFT charges - Inward, NEFT charges-Outward (As per specified limit in withdrawals section), RTGS - Outward (As per specified limit in withdrawals section), RTGS - Inward, mobile banking, and netbanking are all free.
For savings bank balance of Rs. 50 lakh and above, HDFC Bank offers 4 per cent interest rate on BSBD accounts. For savings bank balance below Rs 50 lakh, HDFC Bank offers 3.50 per cent interest rate on BSBD accounts.
ICICI Bank offers BSBD accounts in all cities and to all Indian residents, it said on icicibank.com.
A passbook facility is available at base branch free of cost. The daily spending/withdrawal limit on ICICI Bank debit card is Rs. 10,000/ Rs.10,000. There is no annual fee charged on debit card.
Cheque books and SMS alert facilities are not offered by ICICI Bank to BSBD account holders. There is no facility of outstation cheque collection through ICICI Bank branches or other bank branches.
ICICI Bank BSBD interest rates are same as those offered on savings bank accounts. ICICI Bank offers 3.5 per cent interest rate for end of day account balance of below Rs 50 lakh; 4 per cent interest rate for end of day account balance of Rs 50 lakh and above.
Axis Bank allows customers to deposit and withdraw of cash at bank branch as well as ATMs, according to its website, axisbank.com.
Receipt/credit of money through electronic payment channels or by means of collection/deposit of cheques is allowed to Axis Bank BSBD account holders.
Up to four withdrawals a month (including branch cash, Axis/other ATM cash withdrawal, POS, Micro ATM, NEFT/RTGS, DD/PO, ECS/SI debit transactions) and unlimited deposits are allowed.
BSBD account customers can get monthly e-statements, passbook and SMS alerts.
Besides, Axis Bank offers accidental insurance cover of Rs. 1 lakh to all account holders, at no charge or premium.
Axis Bank allows for a higher daily withdrawal limits of Rs. 40,000 at ATMs and Rs. 1,00,000 for shopping transactions to BSBD account holders.
RuPay debit card can also be issued for customers who cannot read and write.
Axis Bank offers 4 per cent interest rate per annum on savings account balance of Rs. 50 lakh and above. On savings account balance less than Rs.50 lakh, ICICI Bank offers an interest rate of 3.5 per cent per annum.
Zero minimum balance account benefits under Punjab National Bank (PNB)
PNB issues a cheque book of 20 leaves free of cost in a year, the bank said on pnbindia.in. Thereafter, normal cheque book charges would be applicable.
There will be no limit on the number of deposits that can be made in a month.
BSBD account holders of PNB will be allowed a maximum of four withdrawals in a month. However, the number of ATM withdrawals will be excluded in overall limit of four withdrawals in a month.
Facility of ATM-cum-debit card shall be available without any charge. The services available in the account will include deposit and withdrawal of cash at bank branch as well as ATMs, receipt/ credit of money through electronic payment channel or by means of deposit/collection of cheques drawn by central/state government agencies and department.
No charge will be levied for non-operation / activation of in-operative BSBD accounts. The existing basic banking 'no frill' accounts will be converted to basic savings bank deposit account (PNB Zero Balance Account) after completing KYC norms.