How to open a zero balance account with banks like SBI, ICICI and HDFC

Don't you hate it when you look at your bank statement and find various bank charges eating your hard-earned money? Though a small sum, they wipe out a huge amount of money over a long period of time. Banks levy various charges for non-maintenance of monthly average balance (MAB) requirement, issuing debit card and even closing the account. The good news is that you can bypass these charges by getting a zero balance account open in your name.  A number of leading banks like State Bank of India (SBI), ICICI and HDFC have a Basic Savings Bank Deposit (BSBD) Account that lets you keep your money without any burden of charges or fees.

How to open it?
Though primarily meant for poor people, a zero balance bank account can be opened by any individual provided you have valid KYC documents. SBI lets you open the account online.

Advantages

The biggest advantage of this account is that you can open them with no initial money and there is no minimum balance requirement. You can operate in any one of the modes like single, jointly, or with either or survivor, former or survivor, anyone or survivor etc.

The rate of interest applicable on these accounts is similar to regular saving bank accounts. One can earn 3.5% interest in a zero balance account for deposist below Rs 1 crore.

Also, no charges are levied in issuing the debit card which otherwise costs one 100-300. The banks issue a Basic RuPayATM-cum-debit card against it. This is  free-of cost. Like a regular saving account, you are entitled to use the internet facility. In case you wish to close it, there are no charges. HDFC however, charges Rs 500 if the account is closed after 15 days but before a year. After a year, there are no closure charges. SBI, however, has nil closure charges.

Things to keep in mind

However, order to have a zero balance account, you cannot have any other Savings Bank Account. If there is one it has to be closed within 30 days of opening a Basic Savings Bank Deposit Account. Also, there are only 4 withdrawals allowed at branches.