5 Best Zero Balance Savings Account With Higher Interest Rates In India

When it comes to short-term interest-bearing investments with high liquidity factors, having a savings account is a smart move for your initial step towards your personal finance. However, while we are on the subject of zero balance savings accounts, almost all Indian banks allow their customers to open and manage an account digitally without any burden of minimum balance requirement and its resulting penalty charges. So, if you want to open a zero balance savings account with higher interest rates, here are the top 5 banks that you should have a look at.

IDFC First Bank

IDFC First Bank a leading private sector lender of India offers Pratham Savings Account to its customers with benefits like monthly interest credit on savings, zero balance savings account, quick transactions at micro ATM, interest rates of up to 5%, digital banking services.

This Basic Saving Bank Deposit Account (BSBDA) can be opened by customers who do not have any other savings account at IDFC First Bank. With free and unlimited ATM transactions at any bank anywhere in India, customers will be allowed to conduct daily ATM Withdrawal limit of Rs 40,000, daily POS limit of Rs 1 lakh, and get a free personal accidental insurance cover of Rs 2 lakhs using IDFC FIRST Bank Pratham Savings Account with Rupay Classic Debit Card.

On Balances In Rs	Rate of interest (% p.a.)
<= 1Lac	4.00%
>1lac <= 10lac	4.50%
>10lac <= 2Cr	5.00%
>2Cr <=10Cr	4.00%
>10Cr <=100Cr	3.50%
>100 Cr	3.00%
Source: Bank Website, W.e.f. 01/05/2021

Yes Bank

Yes Bank offers three types of zero balance savings accounts to its customers such as Smart Salary Platinum account, Smart Salary Exclusive account, and Smart Salary Advantage account. All three accounts come with a range of benefits such as tax-free interest income up to Rs. 40,000 on savings account, personal accident death or insurance cover, free RTGS/NEFT payment facility, free IMPS facility through Mobile banking, YES ROBOT: 24*7 personal banking assistant, online recharge and bill payments facility, free demand drafts facility, SMS alerts and so on. Following are the most recent interest rates on savings accounts of Yes Bank.

Daily Balance in the Savings Account (INR)	Applicable Interest Rates (p.a.)
<=1 Lac	4%
>1 Lac to < 10 lacs	4.50%
>=10 lacs to < 100 Cr	5.25%
Source: Bank Website, w.e.f. 13th May'2021

IndusInd Bank

Customers going to open a zero balance savings account can witness a range of account types at IndusInd Bank such as Indus Easy Savings Account which is a Basic Savings Bank Deposit Account (BSBDA), Indus Maxima Savings Account, Indus Delite Savings Account, and Indus Small Savings Account.

Customers with BSBDA account of the bank i.e. Indus Easy Savings Account will get a free Rupay Debit Card having 10,000 ATM limit and 10,000 Point of Sale (PoS) limit. They can also get a plethora of services on their account such as internet banking, video chat with the bank, OmniPresent banking, e-Mandate set up option and much more. The most recent interest rates on Domestic / Non Resident (NRO/NRE) savings accounts of IndusInd Bank are as follows:

Savings Bank Account Interest Rate	Rate p.a
a. Daily balance Upto Rs. 10 Lakh	4.00%
b. Daily balance above Rs.10 Lakhs*	5.00%
RFC savings Rate	FCNR - 1 year rate applicable
Source: Bank Website

Axis Bank

At Axis Bank, customers can open two types of zero balance savings account i.e. Basic Savings Account and Small Basic Savings Account. Both these account are a part of Pradhan Mantri Jan Dhan Yojana Scheme (PMJDY) and comes with a range of benefits such as a free Rupay Debit card with daily ATM withdrawal limit of Rs 40,000, free unlimited cash deposit & 4 free withdrawals per month, and much more. Both accounts can be opened online and customers will get the following interest rates on their savings account balance.

Balance Slabs	Applicable Rate of Interest w.e.f. 01st Apr 2021
Less than Rs. 50 lacs	3.00% p.a.
Rs. 50 Lacs and up to less than Rs. 10 Crs	3.50% p.a.
Rs. 10 Crs and up to less than Rs. 100 Crs	Repo + (-0.65%) Floor rate of 3.50% applicable
Rs. 100 Crs and up to less than Rs. 200 Crs	Repo + (-0.50%)
Rs. 200 Crs and up to less than Rs. 2,500 Crs	Repo + (-0.50%)
Source: Bank Website

Kotak Mahindra Bank

With 811 Digital Bank Account of Kotak Mahindra Bank, customers can get an interest rate of up to 4% with attractive benefits such as zero charges on non-maintenance of balance, easy transfer of money, 811 Virtual Debit Card, digital banking solutions, and much more. One can open this account online and can manage his or her account through Kotak Mahindra Bank mobile banking app. The latest interest rates on savings accounts of Kotak Mahindra Bank are as follows:

Nature	Rate of Interest (Normal)	Senior Citizen
A. Domestic (W.e.f. Jun 19, 2021)	3.50% p.a. on balance up to Rs. 1 lakh	3.50% p.a.* on balance up to Rs. 1 lakh
	4% p.a. on balance above Rs. 1 lakh upto Rs. 50 Lakh,	4% p.a.* on balance above Rs. 1 lakh upto Rs. 50 Lakh,
	3.50% p.a.* on balance above 50 Lakh	3.50% p.a.* on balance above 50 Lakh
B. Basic Savings Bank Deposit Account/Small Account (W.e.f. Jun 19, 2021)	3.50% p.a.* on balance up to Rs. 1 lakh,	3.50% p.a.* on balance up to Rs. 1 lakh,
	4% p.a.* on balance above Rs. 1 lakh upto Rs. 50 Lakh,	4% p.a.* on balance above Rs. 1 lakh upto Rs. 50 Lakh,
	3.50% p.a.* on balance above 50 Lakh	3.50% p.a.* on balance above 50 Lakh
C. Non Resident (NRE/NRO)	3.50% p.a.	3.50% p.a.