Here’s what you need to look for before in zero balance saving account banks

There was never a better time than today to understand the importance of having the best zero balance savings account. It not only helps you meet your financial requirements but also comes handy in case of any emergencies or to meet specific goals.

It is undoubtedly a very wise step to look for a zero balance saving account banks, but unlike those who just go out to the closest bank to open a zero savings account, we have a piece of advice. But first it is important to understand that though all banks offer their existing and new customers with lots of facilities, yet we recommend an intensive research work is done before you finalise a bank to open a savings bank account with.

The best thing to do is to make a list of banks that offer the best facilities including the best zero balance savings account and then look for other provisions that suit your needs. Below given are a few vital points one must definitely consider before proceeding. Let’s check them out. 

Zero balance account: If you are able to spot a zero balance saving account banks then it must definitely be picked and kept aside for consideration. This is because you don’t have to worry about breaching the minimum balance savings account and additionally, it allows you to grow your wealth. This means, that since it is a zero balance account, the customer is not required to maintain a minimum balance.

Banking facilities: Many banks shower a lot of privileges on their customers. They make sure that their customers get the best of facilities for their convenience. So, while checking out the banks, make a list of the facilities different banks offer. Then tick off zero balance saving account banks that offer facilities such as, digital and online banking, deposit and withdrawal of cash at bank branch as well as Automatic Teller Machines (ATMs), overdraft facility, and so on.

Freebies: Free gains are like icing on the cake and a real privilege that new or fresh bank customers enjoy. Most banks issue free cheque books, free ATM or ATM-cum-debit cards, and discount on bank lockers and so on and must be availed while opening the best zero balance saving account.  

Conclusion

No doubt, our lives have come shattering down, but still not all is lost if we adopt systematic steps and move ahead with caution.

So, get cracking and be wise in choosing the best zero balance saving account.

How best savings interest rates can play a major role?

The year 2020 is a perfect example of how things can take a U-Turn and could bring you to almost a standstill. The global economy has witnessed the worst crisis in its entire history. However, there are always two sides of a coin and so does this crisis as well. While the economy is badly hit, it is also high time to learn taking good care of finances.

When it comes to handling finances, there’s no better tool than high interest earning savings account. Also, there are enough reasons why opening a savings account is extremely beneficial to sail through such unprecedented times.

Helps evaluating financial management – Just an advice to help you save more money is to evaluate your finances thoroughly. During an ongoing crisis, you really need to have detailed review of your expenses, in order to figure out any room to cut the unnecessary costs. Start with getting hands on savings account statements. Almost every bank provides monthly statement to its accountholder for quick and easy access to their spending habits. In addition, bank statements also give a detailed perception to let you know whether you’re earning best savings interest rates or you need to switch the account with existing bank.

Do the cost cutting – Once you have your bank statements on the table, it would be easier for you to prioritize the expenses. Remember, this is high time when you need a concrete financial management plan to park some money as emergency fund. Savings account is a great tool to secure your finances during such uncertain times.

Provides secured alternative income – There are several financial instruments in the market which promises to provide additional income over a period of time, though these instruments don’t guarantee the security of funds. On the other hand, savings account allows the accountholder to earn interest and double the savings over a period of time, while keeping the deposits secured from the changing market scenario. There’s hardly any risk involved in dealing with the savings account deposits.

Save for emergency – The year 2020 has been a life lesson for almost everyone. It has taught why it is significant to save a little as emergency fund as you never know when things could take a sour turn. With best savings interest rates, you can definitely put some funds for emergency use. You can park the accrued interest for future goals or meeting emergency needs.

Therefore, savings account is a great choice to keep an eye on your budget, while supporting financial growth over a period of time.

Know the features that instant bank account offers its customers

Banking was never easier than it is today. In fact, the banking system is so sensitive towards its customers that it is taking constant steps to improvise their banking experience. Instant bank account is one such facility that banks have doled out for the convenience of its existing customers and to pep-up its clientele list.

As the name signifies, the account can be opened within minutes using the Aadhaar number and Permanent Account Number (PAN) details on the Smartphone. You just have to log on to the website of the preferred bank and provide all the basic details mentioned in the KYC documents. Once the account opening procedure is complete, you are provided with an account number and a Customer ID immediately.

Once the account is open, the netbanking and mobile banking facility gets automatically enabled and you can enjoy seeing your money multiply with the monthly interest payout in your savings account.

Let us check out some of the features that instant accounts provide before you opt for one.

1. Convenient: It is a fully digital account that helps you open a savings account instantly from the comfort of your home. It is a method of immediate exchange of money for services from the payer’s account to the payee bank account without waiting for business days, irrespective of time and geographical location. This means that the instant bank account transaction can be made 24x7, on public or bank holidays and even while you are away on a vacation. Apart from this, you can make several transaction in a day.
2. Cashless transactions: Since the transactions are digital, all transactions made from the account are cashless and no cheque books or passbooks are issued to the account holder. This means that if you wish to make a payment at a counter, you just have to use your smartphone and log in to the account and make the desired payment. The amount gets transferred directly from your account to the vendor’s account within seconds. 
3. Eligibility: There is no particular eligibility criterion to open the account. It can be opened by anyone who is above 18 years of age, is a citizen of India and holds valid identification documents or proofs.
4. KYC validity: Since the account is opened instantly via digital mode with limited customer identification documents, the account holder has 12 months to approach the bank and complete the Know Your Customer (KYC) process. This converts the instant account into a regular savings account.
5. Free bill payment, money transfers: The instant bank account also allows you to make payments of your utility bills such as electricity bills, booking LPG cylinders and no amount is charged by the banks for initiating Immediate Payment Service (IMPS), National Electronic Funds Transfer (NEFT) and Real-Time Gross Settlement (RTGS)
6. No minimum balance required: With zero minimum balance facility, the account holder does not have to worry about paying a penalty in case of breach of minimum balance in the account. 

Develop smart banking habits with selfie account

A selfie account is a mobile-based savings bank account that allows Indian customers to open accounts on their own using their Aadhaar Number and Permanent Account Number (PAN).

The customer must not have opened any other account using the eKYC process in any bank across the country.  As of now, the facility is limited only to smartphones and only residents of India can open an account. The account is not only a major hit in urban areas but also in rural India.

The selfie account is an initiative of the National Payments Corporation of India (NPCI) that uses the Immediate Payment Service (IMPS) to immediately clear the money transfers without waiting for a bank’s approval.

Steps to open the account

-         Download the app

-         Register/ provide the mobile number linked with Aadhaar card

-         Opt for ‘open a new account’

-         Choose the selfie account

-         Choose to proceed with e-KYC 

-         Select the branch

-         Verify the account by providing the One Time Password (OTP) sent to the registered mobile number

-         Take a selfie

-         Scan and upload Aadhaar card and scan the QR Code

-         Scan and upload the PAN card

-         Provide details such as city and state, bank branch and income range

-          Accept terms and conditions to proceed

Once the account is created, it instantly turns into a digital passbook. The account number will be generated in real time.  

The customer can operate the account up to 11 months without submitting the Know Your Customer (KYC) details at the branch in person and submit self-attested copies of Aadhaar and PAN card.  

Essential eKYC

-         The mobile number must be linked with Aadhaar

-         A self-attested Aadhar or PAN card

-         A selfie

Benefits

-         No average minimum balance required

-         Free ATM or debit cards

-         No internet banking charges

-         Free email account statements, email alerts

-         Saves customer’s time and energy by visiting the bank and go through the painful procedure of filling lengthy forms

-         Some banks provide a cheque book of 10 leaves per year, free of charge

-         Free internet banking facility

Features

-         The annual deposit limit is Rs 2,00,000

-         Maximum limit is of Rs 1,00,000

-         The rate of interest is equivalent to the regular savings account which is 4%

-         4 fund transfers below Rs 50,000 in value are allowed in a month

The Bottom Line

The banking sector is working tirelessly to enhance customer’s banking experience and the selfie account is a first-of-its-kind endeavour that facilitates the opening of a savings account via smartphones.  

To know more on it, log on to https://savingaccount.in/blog/fedbook-selfie-zero-balance-account

Points to ponder while shopping for best savings account interest rates

A savings account is the first bank account most of us have held and taken pride upon as young adults. Looking back today, it seems to be baby step, but a vital one, towards our financial existence, independence and stability. As time passed by, we matured and got exposed to the new schemes, offers and better facilities offered by banks and we did realise that we could have saved better had we been more focused while shopping for savings account interest rates.

Yes, basically savings accounts are designed to just keep an account holder’s money safe while it slowly and steadily grows on interest it receives from the bank. Almost all banks offer more or less the same interest rate – be it for senior citizens, women, minors, or for any other regular account.  However, many of us ignorant persons believe that just opening a savings account is enough.

Below given are a few points that every account holder or a prospective account holder must keep in mind – especially with regards to interest rates.

Check them out for yourself and let your money grow even while you are not looking at it.

Differentiate between wants and needs: Going by the advice of financial gurus, we, as savers, have a major responsibility towards our money. Time and again, they have been stressing on a major point for anyone looking out for a savings account interest rates and that is the need to differentiate between wants and needs. Wants are things that one desires (example a dinner at a restaurant with friends or a branded perfume) and can often do without, while needs are things that people cannot do without (simple food or clothing). According to them, people save better if they have a clear mind about where they can squeeze themselves and what is it that they need to spend on.

Save for specific goals:  People have short-term as well as long-term goals. And setting specific financial goals keeps an individual motivated and determined to save. People could save to fund anything. It could be a vacation, a wedding, an anniversary or even a vehicle repair. On the hind side, as people save in different accounts, their money keeps growing with the interest they receive from the banks.

Choose your investment plan wisely to get the highest interest rate

Shopping for an option to have the best returns? We advice you look for ones that offer high interest rate. If you have been visiting banks and surfing the internet then you would probably have realised that there are banks that claim to offer ‘highest interest rate’. They are not wrong in their claims, but banks offer different interest rates on varied investment programmes. And secondly, no bank can help if you are not a good saver yourself. 

Every investor wants to make investments that fetch them high returns as fast as possible. No wonder, why investors are always on the lookout for top investment plans where they can double their money in little time and with little or no risk.

1. Direct equity: This is a high-risk asset as it guarantees no returns. However, the investors stand a bright chance of getting higher than inflation-adjusted returns compared to all other asset classes. There are a lot of investors who invest in it and often bag the highest interest rate.
2. Debt funds: These are best suited for investors who look for steady returns. These are less volatile but invest in fixed-interest generating securities like corporate bonds, government securities, treasury bills, commercial paper and other money market instruments and the market return is indeed good.
3. National Pension System: It is a long term retirement-focused investment product and the highest interest rate for 1, 3, 5, years can be said to be around 9.5%, 8.5% and 11% respectively.
4. Check out online-only banks: These are definitely better than the traditional banks. This is because while traditional banks have too many overhead expenses like paying for utility like (electricity and water charges) salaries of bank personnel and other staff, rent/ purchase of building, infrastructure, maintenance and much more, online-only banks save on all these and channelize the amount to their customers in the form of interest.
5. Build a Certificate of Deposits (CD) ladder: CD ladders are a smart way of investing your money. It requires the candidate to split their money and invest them in different CDs for varying term lengths. This investment programme offers higher rate of liquidity than a single CD and allows you to earn a higher return rate than you would get with a regular savings account.  
6. Senior Citizens’ Saving Scheme (SCSS): This is a must-have choice for the elderly citizens. It can be availed from a post office or a bank by anyone who is above 60-years-of age. Though it has a fixed tenure, it can be extended by years once the scheme reaches maturity. So, you see even if they may not be the ones offering ‘highest interest rate’ they are definitely having the best bargain.

Why BSBDAs have an upper hand over regular ones?

Many people are in the habit of maintaining more than one savings account which requires them to maintain a minimum balance in each one of them. This not only blocks huge amounts of their savings, but they also have to pay a penalty in case there is non-maintenance of the prescribed monthly average balance (MAB). So, you see, having such accounts is one thing and maintaining them is another, and we tell you that maintaining them is not everyone’s cup of tea.

Therefore, we advise keeping just a Basic Savings Bank Deposit Accounts (BSBDA) that has many advantages to it apart from being a zero-balance savings account. Doing so will help the account holder streamline the transactions.

The account caters to those hailing from weaker sections of the society and the guidelines, as prescribed by the Reserve Bank of India (RBI), are applicable to all scheduled commercial banks across the country. This includes even the foreign banks having branches in India.

However, the RBI has left it to the banks to provide or charge additional-value added services like issuance of cheque books, etc.

Apart from this, what lures customers towards the BSBDA is the interest rate. It is the same as that of any regular savings account. So, it is almost like, ‘having the cake and eating it too’. This means that the account holder enjoys all the benefits that a regular savings account holder has access to and does not have to worry about maintaining the minimum balance.

Below given are some features of this Basic Savings Bank Deposit Accounts in nutshell

• It does not require initial deposit 
• No minimum balance required  
• Aggregate of all credits in FY must not exceed Rs 1 lakh
• Balance amount must not exceed Rs 50,000
• Can be opened by any individual or Hindu Undivided Family (HUF) entity not having any other savings account in that particular bank or its branches
• Offers free-of-cost banking facilities, like ATM cum-debit card, deposit/ withdrawal, online payment channels, etc
• Offers four free cash withdrawals including withdrawals from ATM, bank branch, online fund transfer or EMI in a month  
• Allows unlimited number of deposits in a month
• Validity of small accounts is 12 month which can be extended by another 12 months.

However, there is a little catch in it. If a customer has another savings bank account, it should be closed within 30 days from the date of opening BSBDA. This is because there is no provision to convert a regular account into a no-frill account.

Get highest interest rate savings account and be an effective saver

No bank can ever give you the highest interest rate saving account if you are not an effective saver yourself. The first step always begins with you saving every penny you earn or inherit. Of course, we all have our ways of saving. Some of us may sacrifice that delicious Mocha Latte while some may skip a birthday bash to save those pounds; others may give up on the idea of vacation via road trip and rather choose a means of public transport.  

Below given are a few tips to boost your interest rates. Check them out for yourself.

1. No more traditional banking: These brick-and-mortar banks have loads of overhead costs like paying the office rent or purchase and maintenance of an official building and infrastructure, paying the personnel and other staff, utility bill and lots more. So it is time to switch to online-only banks. These banks save a lot of overhead costs and channelise it to their customers in the form of high-interest. Take advantage of these online-only banks and be an effective saver.
2. Build a CD ladder: This requires you to split your money and put it in different Certificates of Deposits (CDs) with different term lengths. CDs may not have the highest interest rate savings account but it is better than what your banks offer on regular savings.  A CD ladder offers more liquidity than locking all your money into a single CD. It also minimize your risk and allows you to earn a higher return rate than you would get with a regular savings account.
3. Don’t overspend: It is alright if you have to buy gifts for friends and relatives for their birthdays and anniversaries and make occasional payments for insurance premiums, etc. But we warn you against overspending or indulging in unnecessary things like taking a flight instead of a train, a vacation to an exotic location when you can visit a scenic site which is close to your residence or city and you haven’t unexplored, and so on. You could also try combining work-pleasure trips or if your employers organise a vacation the cost (partial or full) of which will be borne by them.
4. Set short-term goals: The fact is that people tend to save more and successfully when they have short-term goals. Having long-term goals can be weary and the motivation factor could diminish after a few months and you could end up using the amount for some other purpose. This way you could have the highest interest rate savings account ever possible.

There is nothing that can hold you back from becoming an effective saver if you follow our tips to the ‘T’. Stay with us for more on https://savingaccount.in/blog/digital-bank-account.