If you're scared of running short on the minimum balance in your bank account, here's a solution: a Basic Savings Bank Deposit (BSBD) Account should be your pick. A BSBD account, which is offered by most leading banks, does not require any minimum balance to be maintained. So basically, customers of this account do not need to maintain an average monthly balance. Even if you have don’t have any money in such accounts, banks do not penalise you.
Leading banks like State Bank of India (SBI), ICICI Bank and HDFC Bank offer you the option of opening a BSBD account.
Here are the benefits of BSBD account offered by SBI, ICICI Bank and HDFC Bank:
Benefits of Zero Minimum Balance - BSBD account - offered by SBI
SBI issues a basic RuPay ATM-cum-Debit card free of cost to users of this account, according to sbi.co.in. There is no annual maintenance charge. The receipt/ credit of money through electronic payment channels like NEFT/RTGS is free of charge. The deposit/ collection of cheques drawn by central/state governments is free. SBI does not charge anything on activation of inoperative accounts. There are absolutely no account closure charges.
A maximum of four withdrawals in a month, including 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. are allowed. No further customer debits are allowed during the month.
Interest rates offered on Zero Minimum Balance - BSBD account - by SBI:
The interest rates offered by SBI on BSBD accounts are s 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. Savings deposits balance over Rs 1 crore, BSBD accounts offer interest rates of 4 per cent per annum.
Benefits of Zero Minimum Balance - BSBD account - offered by ICICI Bank
ICICI Bank offers a passbook facility at base branch free of cost to customers of BSBD accounts. Besides this, daily spending/withdrawal limits are Rs 10,000 each via ICICI Bank's debit cards. As compared to SBI, ICICI Bank does not offer cash withdrawal and ATM transaction facilities to holders of this account.
ICICI Bank issues one cheque book of 15 leaves per annum free of charge to customers of this account. For additional cheque book (15 leaves), the bank will charge Rs 30 (plus service tax as applicable) per cheque book. Internet banking facility is free.
Interest rates offered by ICICI Bank on Zero Minimum Balance - BSBD account
The interest rates offered by ICICI Bank on BSBD accounts are the same as those on savings bank accounts, stated icicibank.com. For the balance lower than Rs 50 lakh (end of day), ICICI Bank offers an 3.5 per cent per annum. For balances over Rs 50 lakh (end of day), deposits in ICICI Bank will fetch you an interest rate of 4 per cent per annum. Interest is calculated on a daily basis on the daily closing balance in the account, at the rate specified by ICICI Bank in accordance with Reserve Bank of India directives. The interest amount calculated is rounded off to the nearest rupee.
Benefits of Zero Minimum Balance - BSBD account - offered by HDFC Bank
HDFC Bank offers a safe deposit locker and Super Saver facilities to customers of BSBD accounts. A free passbook, cash and cheque deposit facility at branches and ATMs, Rupay Card, lifetime BillPay, InstaQuery, and e-mail statement facilities are offered on this account to customers, according to hdfcbank.com. Customers will get four withdrawals free per month including ATM/RTGS/NEFT/clearing/branch cash withdrawal/ transfer/ internet debits/ standing instructions/EMI, etc.
In case of more than four withdrawals in a month, the bank would convert the existing BSBD account to a regular savings account and all rules and charges as per regular savings account would be applicable. NetBanking, PhoneBanking and MobileBanking will allow you to check your account balance, pay utility bills, or even stop cheque payments via SMS.
Interest rates offered by HDFC Bank on Zero Minimum Balance - BSBD account
For balances up to Rs. 50 lakh and above, HDFC Bank offers an interest rate of 4 per cent. For balances below Rs 50 lakh, the interest rate offered is 3.50 per cent. Both interest rates are the same as savings bank accounts of HDFC Bank.
Banks also offer the option of opening savings accounts, recurring deposit accounts and fixed deposit accounts. Small savings banks too offer these accounts keeping up with their larger peers.