Zero Balance Saving Account
A savings account is a deposit account form that is held at any bank by the customer and it lets them keep money in the bank for a modest interest in return. The most preferred deposit account, its utilities have also undergone a facelift just to become the center of all the activities of the bank for all the people. Some prominent utilities:
- Saving money and earning interest.
- Issue cheques for payments to the recipients.
- Transferring money via internet banking.
- Issuing of debit cards for purchases and cash withdrawals.
- For the services like Electronic Clearing Service of bill payments and EMIs.
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There are different types of savings accounts that are managed by the banks depending on gender, income group, occupation, etc. The savings account needed to have a minimum balance at all the times. If the balance of the savings account falls down below the minimum limit of balance, banks now penalize by nominal monetary deduction. The Zero balance saving account is increasing nowadays.
The zero balance savings account is the one when the account holder is all free to operate the savings account without having to worry about maintaining the minimum limit of balance in the account. These types of the accounts are offered by banks to a specific customer category like salary account holders on the basis of PMJDY (Pradhan Mantri Jhan Dhan Yojana) – a scheme by the Government of India which has a mission of the financial inclusion.
There are many features of the zero bank savings account and they are | Zero Balance Saving Account
- No minimum monthly average or quarterly average balance required to maintain.
- You will get ATM/Debit card for free that can be used to transact anywhere.
- You get free chequebooks with a fixed amount of leaves per year.
- The complimentary passbooks are also issued as a part of the welcome kit when you open an account.
- You get the access to the online transactions and internet banking. There can be some standard charges for the payment transfers.
- There is a certain number of free transactions for every month. There is a nominal fee for subsequent transactions.
- Based on the category of institution/company, special offers and privileges are for salary account holders.
The Pradhan Mantri Jhan Dhan Yojana is an ambitious mission for the Finance Ministry and this program is actually a national mission for the financial inclusion by easy access provided to financial services like Banking, credit, remittance, insurance and pension to the citizens.
There are some benefits of the savings account opened under the PMJDY and they are as follows | Zero Balance Saving Account
- No need of maintaining a minimum balance.
- Interests on deposits.
- Accidental insurance cover of Rs. 1 lac
- Direct benefit transfers will be credited to this account from Governmental schemes.
- After 6 months of satisfactory operation, overdraft facility is offered.
- Free accident insurance cover and RuPay debit card.
But there are also some basic and general terms and conditions for opening the zero balance savings account under Pradhan Mantri Jhan Dhan Yojana and they are as follows | Zero Balance Saving Account
- The total amount of credit in the savings account should not be exceeding the limit of Rs. 1 lac in just a given financial year.
- The debit balance from the savings account should not be exceeding the limit of Rs. 50,000 at any given point of the time.
- The holder of the savings account should have submitted all the documents as per the KYC guidelines are given by the Reserve Bank of India.
- The other terms are specified to the bank where the savings account has been held.
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So, the Pradhan Mantri Jhan Dhan Yojana has started a really good initiative as it will be for the financial stability of the people of the country. Now, the minimum limit of the money in the savings account has also been erased and this is a big thing as there are many people who could not add the amount to such level. Even though there are some benefits, the terms and conditions by the banks still stay and that is the thing that the account can turn into a dormant account if there is no transaction withheld from the account or credited to the account.