Can a Salaried Person Open a Zero-Balance Account?
Zero-balance accounts are popular choices for many Indian citizens. Their flexibility and freedom from minimum balance requirements make them a great option. Now, a pertinent question comes to the fore- if you are a salaried person, are you eligible for zero account opening online? Let us look at the answer to this question and some crucial related aspects in the article.
Are Salaried Persons Eligible for Zero-Balance Accounts?
To come right to the answer- salaried persons are eligible for zero-balance accounts. Many salary accounts in the private sector are zero-balance ones. Here are the usual eligibility criteria for these accounts:
- Indian citizen
- Age has to be 18 and above
- PAN and Aadhar card
One of the biggest advantages of choosing these accounts is the lack of extensive documentation. You can conveniently opt for a zero account opening online process with quick and paperless verification. Just visit your bank’s website, fill up the form, upload your documents, and verify KYC online. That’s all you need to do to set up a zero-balance account today. So you know you’re eligible to set up the account but what’s in it for you? Let us take a look at the key benefits that it offers below.
Biggest Benefits of Zero-Balance Accounts
Here are some of the advantages that you get by choosing zero-balance accounts:
- No monthly average balance requirements (and charges/fees for not maintaining the same).
- Many banks offer free virtual debit cards along with cheque and cash deposits at branches.
- Digital payment facilities like NEFT, Scan & Pay, and UPI.
- Easy online account opening process with minimal documentation.
- Attractive interest rates with free chequebooks and access to internet and mobile banking.
- Cashback and other special offers to salary account holders of specific companies/institutions.
We’ve previously mentioned how many salary accounts fall in the zero-balance category. So, they are not the same as regular savings accounts. Let us look at the differences between these two accounts below.
Main Differences Between Salary & Savings Accounts
Here are the key differences between these account types:
| Parameter | Salary Account | Savings Account |
| Purpose | Employers open these accounts to disburse monthly salaries to employees. | Anyone can open these accounts for saving and depositing money along with carrying out transactions. |
| Who Can Open | Only businesses/employers can tie up with banks to open these accounts. | Any individual meeting the bank’s eligibility criteria can open an account. |
| Minimum Balance | These are zero-balance accounts. | There is a minimum balance requirement that the customer has to stick to on a monthly or quarterly basis. |
| Benefits | There are more free benefits like chequebooks, debit cards, online payment facilities, etc. | The same benefits are available, although many services/facilities are chargeable. |
| Interest Rate | Usually between 3-6%. Some banks may offer higher rates. | Similar rates between 3-6% in many cases. |
The interesting thing is that if your salary is not disbursed to your salary account for three months in succession, the bank will convert it into a regular savings account. Simultaneously, if you work for a company that has a tie-up with any bank where you have a savings account, it can also be converted into a salary account.
The key things to watch out for while opening a zero-balance account are the limit on the number of monthly withdrawals, transaction limits, and the maximum amount per deposit/transaction. These limits may not be as stringent for regular savings accounts. Many banks also offer various financial management tools for zero-balance accounts, which are given below.
Value-Added Tools to Manage Zero-Balance Accounts
As mentioned, several banks offer various tools to help you manage your account more effectively. Some of them include:
- Spending Trackers-
You can use them to classify expenditure and track the same on a regular basis. This will help you know where you spend your money, thereby helping you make and stick to a budget.
- Budgeting Assistance-
There are several tools for budgeting that zero-balance account holders can use to create budgets in sync with their expenditure and income. They help with charts and insights to track financial progress.
- Notifications/Alerts-
Customers can conveniently receive alerts for multiple activities including big transactions, low balance, upcoming payments, etc. These notifications help them stay updated on their financial transactions while avoiding missed payments/overdrafts.
- Automated Savings Features-
Many banks also have options where you can periodically transfer a part of your balance to other deposits for building up your savings. If done right, it can help you amass a significant corpus over time.
Set Up Your Zero-Balance Account Today and Reap the Benefits
If you’re new to the workforce and want to start your banking journey, a zero-balance account is a great way to begin. It will keep you free from minimum balance requirements and several charges usually associated with banking services and facilities. At the same time, if you work for a reputed employer, the bank may also provide special offers and perks that make your decision more worthwhile.
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