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What Is The Difference Between Savings Account and Zero Balance Account?


Individuals are usually suggested to open savings account for doing any financial transaction. There are different types of savings account offered by the bank depending on the minimum balance maintenance.


Individuals can also opt for zero balance savings account or basic basic savings bank deposit account (BSBDA), with bank a bank in case they are not interested in maintaining minimum balance as prescribed by the bank.

Let us understand the difference between savings account, zero balance account, BSBDA.

Difference Between Savings Account and Zero Balance Account

Savings account

The main features of a savings account is that it offers high limit of financial transactions, and deposit limit. Know Your Customer (KYC) done on such accounts is mandatory.

Maintenance of minimum balance is mandatory in such accounts which vary between Rs 500-1000 in public sector bank. In Private sector banks it vary from Rs 5000-Rs 25,000 depending on the account.


Basic savings bank deposit account can be opened by anyone with any bank. However, one is not eligible to open savings account in the same bank after opening BSBDA. There are certain limitations with this account, such as there will be a limit on number of deposits made, number of cheque leaf issued.


For KYC purpose, only one proof can be submitted to open such accounts including Pradhan Mantri Jan Dhan Yojana. There is no need to maintain any balance in the account.

Small account

Small accounts are very similar to BSBDA, there is no KYC required for such accounts only with the help of introducer one can open the account.

Balance in this Account at any point should not exceed Rs 50000/- and all credits should not exceed Rs 1 lakh in a financial year. There will be maximum of four withdrawals in a month.

Zero balance accounts

Zero balance can be different with each bank. Salary account can also be called zero balance account as there is no requirement of minimum balance maintenance.

In some private banks, if an individual maintains fixed deposit of more than Rs 1 lakh there is no need to maintain minimum balance in such accounts.


Individuals can consider opting for savings account in public sector banks instead of opting for BSBDA in private banks. As requirements of maintaining minimum balance is Rs 500-1000 in public sector banks, which is very less when compared to private banks which charge around Rs 5000-10,000.

Read more about: savings banking
Story first published: Monday, September 19, 2016, 10:54 [IST]
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