Savings Account is a common saving instrument that customers can open to save money and withdraw money at will.A zero balance saving account is a type of savings account that doesn’t have any minimum average balance. Other types of savings account have an Average Monthly Balance(AMB) requirement that needs to be maintained monthly.
The government of India introduced zero balance accounts or Basic Savings Bank Deposit Account(BSBDA) for the financial inclusion of the masses. Moreover, as banks could open instant digital accounts for their customers, banks offered online zero balance savings account through which customers can open 0 balance savings account onlinefrom the comfort of their home.
Online zero balance savings account and Basic Savings Bank Deposit Account(BSBDA) are the two types of zero balance savings account. In this article, we will compare the differences between a digital zero balance savings account and BSBDA.
Differences between Zero Balance Online Savings Account and BSBDA
|Parameters||Zero Balance Digital Savings Account||BSBDA|
|Who can open it?||Any new bank customer above 18 years with no prior relationship with the bank||Individual above 18 years who don’t have any bank account can open|
|Mode of opening||Online account opening through the official website or mobile banking application||Visit the nearest bank branch of the chosen bank and get help from an executive to open a BSBDA|
|KYC||You must first fill in the Aadhaar Number and PAN. You will then receive an OTP on your registered mobile number. Further, you are required to complete the KYC within 12 months of account opening.||You must submit the hard copies of all the KYC documents to the bank’s branch office.|
|Debit Cards||Depending on the bank, Master Card, VISA card, or RuPay card is available.||Only RuPay Card is available|
|Availability of joint accounts||Based on the chosen bank, its regulations, and guidelines, you can apply for a joint account. However, many online zero balance savings account don’t offer joint accounts. You may have to complete the full KYC process or visit the bank branch to upgrade your account to open a joint account.||Individuals can open joint BDBDA account with spouses or family members.|
|The withdrawal limits||Accountholders can make unlimited cash withdrawals in a month. However, the number of free transactions will depend on your location with five maximum free transactions.||You can only withdraw cash a maximum of 4 times in a month including ATM usage.|
|Video-based KYC||Individuals can open video-based Full KYC Account opening with zero paperwork. This means that you don’t have to visit the bank branch to open or complete your full KYC process. Kotak 811 is one online zero balance account that customers can open through video-based KYC process.
|The video-based KYC account opening process is not available.|