A Step-by-Step Guide to Open an Instant Zero Balance Account Nature: Article

Maintaining a minimum balance in the account sometimes becomes problematic. Therefore, zero balance accounts (ZBAs) are gaining popularity. They function the same as a regular savings account but without the need for a minimum balance. You can open and maintain it with a zero balance. A ZBA works best for individuals lacking a regular income and who cannot maintain a minimum balance in their accounts.

A savings account with zero balance makes sense for you too, if you wish to save for the future while enjoying complete peace of mind. Unlike regular savings accounts, a ZBA is free from the Average Monthly Balance (AMB) requirements. You won’t incur penalties if your account balance falls below the AMB threshold. Also, ZBAs offer decent interest rates. If you happen to choose Kotak 811 zero balance account, expect up to 4% interest yearly.

Like any regular account, you can use a ZBA to deposit, transfer, and withdraw money anytime, anywhere. The facility of Internet Banking and digital transactions through NEFT, IMPS, UPI, and more is also available. 

How to Open a Zero Balance Account?

ZBAs are designed to simplify banking, hence, an easy account opening process. Specifications might vary, but all banks allow you to open a ZBA online and offline for free. Let’s discuss both, one at a time. But first, have a look at the eligibility requirements.

Eligibility

The eligibility requirements to open a bank account online free of cost are as easy as they get. You need to be:

· An Indian resident

· 18 years or above

Offline Account Opening Process:  

You need to follow the following steps to open a ZBA offline.

Step 1: Visit the nearest branch of the bank and collect the relevant form.

Step 2: Carefully fill out the form. Check for errors before submitting it.

Step 3: Provide your identification and address documents and passport-size photographs.  

Step 4: The bank will go through your form and documents for verification. Once verified, you’ll be provided with your account details and ATM/Debit card.

Step 5: Generate your PIN from the bank’s official website to activate the ATM/Debit card. Once done, you can start using the zero balance account for your day-to-day banking needs.

Renowned organisations like Kotak Mahindra Bank offers an easy way to open a ZBA offline. Call the bank's customer care number and a dedicated executive will guide you through the process. Document verification will be done via video KYC, and a free debit card will be delivered to your doorstep. 

Online Account Opening Process:

Banks like Kotak Mahindra even allow you to open a savings account zero balance from the place and time of your choice. All you need is a smartphone/PC and an internet connection. Though the process varies from bank to bank, it typically involves the following steps.        

Step 1: Log onto the bank’s website or download its app from PlayStore.

Step 2: Punch in your details like name, contact number, and email ID.

Step 3: The system will send an OTP on the provided number. Enter it in the space provided.

Step 4: Authorise the system to use your Aadhaar details for account opening.

Step 5: Punch in your Aadhaar and PAN Number. Next, accept the applicable T&Cs.   

Step 6: Type in the OPT sent by the system on your Aadhaar-linked number for verification.

Step 7: Enter other required information, including yearly earnings, marital status, and more.

Step 8: The system takes you to a page where you’ll need to hit the “Tax Resident” status.

Step 9: Designate a nominee for the ZBA and type in his/her address.

Step 10: The system will then display your profile. Check it and accept the applicable T&Cs.

Step 11: Fix an online appointment for Video KYC by providing the meeting address and time.

Step 12: Have in place your net banking password, MPIN, and other passwords.

Once the account is set up, feel free to start using it right away.     

Documents Required:

To open a bank account online free of cost, you can provide the following documents.

· Identity Proofs: Aadhaar Card, Pan Card, Voter ID Card, Driving License, Passport

· Address Proofs: Utility Bills of the past two months, Aadhaar Card, Driving License, Passport, Ration Card, Passbook, Voter ID Card, Rent Agreement