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Zero Balance Account or Normal Account: Which to Choose & Why
Posted on Wednesday, October 25th, 2023 | By IndusInd Bank
The choice between a standard account and a zero balance account depends on your individual financial needs, ability to maintain a minimum balance, and preference for particular banking features and services.
A savings bank account offers a secure platform for keeping your money and letting it grow steadily. Whether you are saving for the future or frequently depositing your hard-earned money, this account serves as an essential tool for managing your finances and achieving financial objectives. If you are planning to open a savings account, you have two main options – the Normal or Standard Savings Account and the Zero Balance Account. Each account type has distinctive features and benefits, which can make the decision slightly challenging. Continue reading to explore both account types and make a well-informed choice regarding which one is better for you.
What Is a Normal Account?
A normal account is a standard savings account that allows you to deposit funds and accrue interest. Generally speaking, there is a minimum balance requirement that you must maintain at all times. If your balance goes below this limit, you would incur a penalty for not meeting the minimum balance requirement. The specific minimum balance required may vary from one bank to another.
What Is a Zero Balance Account?
A zero balance account is essentially a savings account that allows you to freely use banking services without maintaining a minimum balance. This account is designed to promote financial inclusion and make banking services accessible even to those who are unable to set aside hefty savings.
Similarities & Differences Between a Normal Savings Account & a Zero Balance Savings Account
The table below highlights the similarities and differences between a standard savings account and a zero balance savings account.
| Feature | Normal Savings Account | Zero Balance Savings Account |
| Rate of Interest | It is an interest-yielding account | It is an interest-yielding account |
| Minimum Balance Requirement | Typically varies between INR 500 a month to INR 25,000 or more | Zero balance requirement & nil charges for non-maintenance of balance |
| Initial Deposit Amount | A minimum deposit is required to open the account. | There is usually no deposit required. Even if initial funding is needed, it can be withdrawn as soon as the account is active |
| Debit Card | Availability of physical debit card for online and offline shopping | Physical debit card is usually available; some zero balance accounts come with a virtual debit card for online shopping only |
| Financial Transactions | There is usually no cap on financial transactions | There may be a limit on the number of free transactions in a month |
| Cash Deposit Limit | There is no cash deposit limit | You can generally only deposit cash up to a specific limit |
| Digital Banking | There is full access to digital banking | There is full access to digital banking |
Normal Account vs Zero Balance Account: Which One Should You Choose?
Deciding between a normal bank account and a zero balance account largely depends on your financial situation and goals. Opt for a normal account if you can comfortably maintain a minimum balance in your account and would like access to the full suite of banking features and services. On the other hand, if you struggle to keep a minimum balance and are primarily seeking basic features like receiving payments and conducting limited transactions, a zero balance account may work better for you.
Open an Indus Delite Account – A Zero Balance Savings Account from IndusInd Bank
The Indus Delite zero balance account from IndusInd Bank is your gateway to hassle-free banking. The Indus Delite Account is perfect for students, freelancers, home-makers, young professionals, or for anyone looking for a bank account free of restrictions.
Beginning with an instant 100% digital and paperless account opening process, this zero balance account brings a host of benefits including competitive interest rate, appealing cashback offers on debit card spends, complimentary insurance, free movie tickets, and an extensive array of digital banking services for your convenience. What’s more, it even comes with an all-new ‘My Account My Number’ feature that allows you to select a personalised account number, be it your birthdate or that of your loved ones.
With so many attractive features, this zero balance account from IndusInd Bank offers maximum convenience with minimum obligation. Open an Indus Delite account today!
Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.
