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Zero balance account on SBI and IPPB. All you need to know
Posted on: 15/Feb/2019 12:03:49 PM
Basically, what is a zero balance account? A savings account in which the customer is free not to maintain specific monthly average balance (MAB) is called a zero balance account. This MAB is the total sum of closing balance at the End of the Day when divided by the total number of days in that particular month. Here, the customers are free to open a savings account and they still do not have to maintain minimum balance in it. Nevertheless, customers enjoy the same benefits of a savings account.
Below are the details of interest rate and features that SBI provides, India Post Payments bank for accounts of zero balance type
The State Bank of India (SBI)
Zero balance account by the SBI called BSBD can be easily opened by any individual when they have a proper Know Your Customer (KYC) documents. This is basically for people who are of economically weaker parts of the society. This encourages them in saving money with no kind of additional fees payment, says corporate SBI website. The interest rate offered by the SBI BSBD account is 3.5 percent for accounts that has balance maintained up to Rs 1 crore, and for balance beyond this, the interest provided is 4 percent.
When the basic savings bank deposit account is opened in a customer’s name, the same customer will not be able to have any type of other savings bank account. When there is any savings bank account in the same customer’s name already, within 30 days of opening the basic savings bank deposit account, the savings account has to be closed. As far as the SBI BSBD account is concerned, there is no kind of minimum or maximum deposit.
India Post Payments Bank (IPPB)
The India Post Payments Bank is a state owned bank. There are totally 3 types of zero balance accounts which are
- Regular savings account
- Digital savings account
- Basic savings bank deposit account
With the IPPB, the interest rate is 4 percent for all the above mentioned zero balance savings accounts, as per IPPB sources.
One can directly visit the access point of payments bank for opening the regular savings bank account in IPPB. Or otherwise there is also doorstep service for such account opening. It offers facilities including account statement for every quarterly, fund remittance service, etc.
For opening a digital savings account, one can seek the payment bank’s mobile app which can be downloaded from Google PlayStore. Here, users get quarterly account statement for free and also enjoy the facility of instant fund transfer.
Each and every feature of a regular savings account is also provided on basic savings bank deposit on IPPB. The only difference is that it allows just 4 withdrawals per month. Basically, the basic savings account gives the customers with all kinds of primary banking services at affordable rates, say official website of India Post Payments Bank.
