Zero Balance Savings Account Interest: SBI Pays Up To 4%; Jana Small Finance Bank 6%

A zero balance savings account does not require customers to maintain any particular minimum average balance over a given period of time. Most banks offer the option of opening such accounts. State Bank of India (SBI) offers the facility of opening a zero balance savings account in the form of basic savings bank deposit, digital savings and insta savings accounts, among others. However, with most banks, including SBI, the interest rate on zero balance savings account is the same as that on a regular savings account. However, Jana Small Finance Bank, which started its commercial banking operations last week, and offers the zero balance savings account facility, is offering an interest rate which is much higher than larger peers like SBI.

Given below is a comparison between zero balance savings account of Jana Small Finance Bank and State Bank of India (SBI):

Zero balance savings account (basic savings bank deposit account) of Jana Small Finance Bank
A basic savings bank deposit account (BSBDA) by Jana Small Finance Bank is a 'Zero Balance' savings account packed with basic banking facilities, said the bank. The objective of offering BSBDA is to provide bank accounts to those who do not have it and thereby support and enhance financial inclusion, according to the lender's website, janabank.com.

While anybody can open a zero balance savings account - BSBDA, a person with a BSBDA account will not be eligible for opening any other savings account with Jana Small Finance Bank. If a customer has any other existing savings account, he or she will be required to close it within 30 days from the date of opening of the BSBDA account.

Benefits of zero balance savings account/BSBDA offered by Jana Small Finance Bank
Jana Small Finance Bank offers a RuPay Classic Debit Card for withdrawals or transactions to its customers holding BABDA accounts. Customers can deposit an unlimited amount of cash and make a number of transactions.

Jana Small Finance Bank also offers the facility of a mobile banking app to perform funds transfer comfortably.

Interest rate on zero balance savings account/BSBDA offered by Jana Small Finance Bank
Jana Small Finance Bank offers an interest rate of 6 per cent on zero balance savings account/BSBDA.

Zero balance savings account (basic savings bank deposit account) of SBI
This account can be opened by any individual provided he/she has valid KYC or know your customer documents. This zero balance savings account is primarily meant for poor sections of society to encourage them to start saving without any burden of charges or fees, according to SBI's corporate website, sbi.co.in.

Benefits of Zero balance savings account (basic savings bank deposit account) of SBI
A basic RuPay ATM-cum-debit card will be issued free of cost to the users of this account. However, there is no annual maintenance charge. The receipt or credit of money through electronic payment channels such as NEFT and RTGS is also free. The deposit or collection of cheques drawn by central/state governments is free.

SBI does not charge anything on activation of inoperative zero balance savings accounts (BSBDA). There are no account closure charges, the lender said.

A maximum of four withdrawals are allowed in a month. These withdrawals include ATM withdrawals at own and other bank's ATMs and transactions through other modes including RTGS/NEFT/clearing/branch cash withdrawal/ transfer/ internet debits/ standing instructions/ EMI etc. No further customer debits are allowed during the month. This is in contrast to Jana small Savings Bank which allows unlimited number of transactions to users of zero balance savings account BSBDA.

Interest rates offered on zero balance savings account/BSBD by SBI:

The interest rates offered by SBI on BSBD accounts are the same as those on savings bank accounts. For savings deposits balance up to Rs. 1 crore, BSBD accounts will fetch you 3.5 per cent per annum. On savings deposits balance over Rs. 1 crore, BSBD accounts offer an interest rate of 4 per cent per annum.