6 Best Zero Balance Savings Account in India — Compare Interest Rates, Benefits & Features

In today’s world, maintaining a minimum balance often feels like a burden rather than a benefit. Imagine getting your salary, spending on bills, groceries, and UPI payments — and then suddenly being penalised for not maintaining ₹10,000 in your account. That’s where zero balance savings accounts step in — no minimum balance requirement, no penalty, and full access to digital banking.

As India transitions into a digital-first economy, most banks — public, private, and even payments banks — now offer zero balance savings accounts to encourage financial inclusion. From students and freelancers to salaried individuals and homemakers, these accounts provide a simple, paperless, and penalty-free way to manage money.

But with so many options available, which one should you choose? We’ve compared the top zero balance accounts in India — based on interest rates, benefits, ease of account opening, and digital banking experience.

There are a majority of Indian banks that allow customers to open up this account and begin their savings journey. However, when you have innumerable options in front, choosing the best one out of the rest may seem an arduous task.

Keeping that in mind, this post has a compiled and curated list of best zero balance savings accounts. Check out the prominent ones.

What is a Zero Balance Savings Account?

A zero balance Savings Account allows you to keep your account active even with ₹0 balance. Unlike traditional savings accounts, you don’t have to maintain a minimum monthly or quarterly balance.

These accounts are perfect for -

• Students or first-time earners
• Freelancers and gig workers with irregular income
• Rural account holders who transact occasionally
• Salaried employees who prefer digital banking

Most banks offer these accounts under the RBI’s Basic Savings Bank Deposit Account (BSBDA) guidelines, ensuring access to free ATM cards, online banking, and deposits/withdrawals at no extra cost.

Top Zero Balance Savings Account

Here’s a list of the best zero balance savings accounts — updated with the latest interest rates and features -

📌 Notes:

SBI, Axis, Kotak, and HDFC: These banks offer a uniform interest rate of 2.50% p.a. across all savings account balances, including zero balance variants.

• IDFC FIRST Bank: Offers a progressive interest rate structure:

  • 3.00% p.a. for balances up to ₹5 lakh
  • 7.00% p.a. for balances over ₹5 lakh up to ₹10 crore

• RBL Bank: Provides a slab-based interest rate:

  • 3.00% p.a. for balances up to ₹5 lakh
  • 6.75% p.a. for balances over ₹25 lakh up to ₹3 crore

1. State Bank of India (SBI) — Basic Savings Bank Deposit Account

India’s largest bank, SBI, offers a zero balance BSBDA account for everyone with valid KYC.

Key Features -

• No minimum balance requirement
• Free RuPay debit card
• Access to 22,000+ SBI branches and 63,000+ ATMs
• Unlimited deposits allowed

Interest Rate -

Best for rural users, pensioners, and those seeking maximum branch coverage.

2. Axis Bank ASAP Instant Savings Account

Open a zero balance account instantly via the Axis Bank mobile app or website using Aadhaar + PAN for eKYC.

Key Features:

• Instant online account opening
• Unlimited NEFT/RTGS transactions
• Auto Fixed Deposit feature for balances above ₹20,000
• Free virtual debit card

Interest Rate -

Best for digital users and salaried employees who prefer app-based banking.

3. Kotak Mahindra Bank — 811 Digital Bank Account

A pioneer in digital banking, Kotak 811 remains one of India’s most popular zero balance accounts.

Key Features:

• 100% digital account with instant activation
• Virtual debit card for online shopping
• Free UPI, IMPS, and bill payments
• No penalties for non-maintenance

Interest Rate:

Best for students, freelancers, and digital-first users.

4. HDFC Bank — Basic Savings Bank Deposit Account (BSBDA)

HDFC BSBDA is ideal for users who want a blend of traditional banking reliability and digital convenience.

Key Features:

• Free passbook and RuPay debit card
• Free cheque/cash deposits at any branch
• Access to phone and net banking
• No hidden fees

Interest Rate:

Best for salaried users and senior citizens preferring a large branch network.

5. IDFC FIRST Bank — Pratham Savings Account

One of the highest interest rates among zero balance accounts in India.

Key Features:

• Unlimited ATM withdrawals
• Free mobile and internet banking
• Micro ATM access in semi-urban areas
• Easy bill payment and fund transfers

Interest Rate:

6. RBL Bank — Digital Savings Account

RBL offers a 100% digital, paperless account opening experience using PAN and Aadhaar.

Key Features:

• Zero non-maintenance charges
• Unlimited ATM transactions
• Mobile and internet banking access
• Quick onboarding with instant account number

Interest Rate:

Best for tech-savvy users seeking high returns and flexibility.

New Players (Updated)

Don’t miss these digital-first options gaining popularity in 2025:

• Airtel Payments Bank — UPI integration, 2.5% p.a. interest
• Paytm Payments Bank — Fast UPI, wallet linkage, 2.75% p.a.
• India Post Payments Bank (IPPB) — Rural reach, 4.0% p.a., doorstep banking

How to Open a Zero Balance Account Online

1. Visit the official bank website or download the app.
2. Choose Zero Balance / Digital Savings Account.
3. Complete Aadhaar + PAN eKYC (takes 2–5 minutes).
4. Verify OTP and upload signature/photo if required.
5. Get your account number instantly and start transacting.

Tips Before You Choose

• Check interest payout frequency: Some banks pay monthly, others quarterly.
• Look for UPI integration for ease of digital transactions.
• Go for banks with strong mobile apps for better experience.
• Confirm ATM and transaction limits before choosing.
• Compare auto FD or sweep-in features for higher returns.

Summary — Best Zero Balance Accounts by Category

RBI Rules for Zero Balance Accounts

According to the RBI BSBDA guidelines -

• No minimum balance can be enforced.
• Free debit card and basic banking services must be provided.
• Accounts can be opened with Aadhaar and PAN-based eKYC.
• No charges for four withdrawals per month.

Tax Implication

Interest earned up to ₹10,000 in a savings account per financial year is exempt under Section 80TTA of the income tax Act. Beyond that, it is taxable as per your income slab.

Conclusion

A zero balance savings account is the perfect way to start your banking journey — especially if you’re new to saving or prefer flexibility. Whether you’re a student, freelancer, or salaried professional, there’s an option for every lifestyle.

With digital banking taking centre stage, features like UPI integration, auto FDs, and paperless onboarding have made managing finances simpler than ever. Choose an account that matches your habits — not just interest rates. If you’re new to saving, this could be your first step towards long-term financial discipline.

FAQs — People Also Ask

1. Which is the best zero balance savings account in India?

A: Kotak 811 and IDFC FIRST Bank Pratham Account offer the best combination of interest rate and digital features.

2. Can students open a zero balance account?

A: Yes. Banks like Kotak 811 and Axis ASAP allow students above 18 years to open accounts using Aadhaar and PAN.

3. Which bank offers the highest interest rate on zero balance savings accounts?

A: IDFC FIRST Bank currently offers up to 7% p.a.

4. Can I open a zero balance savings account without visiting a branch?

A: Yes. Most banks allow 100% online eKYC through Aadhaar and PAN verification.

5. Are zero balance accounts safe?

A: Yes. All listed banks are regulated by the RBI and provide deposit insurance coverage up to ₹5 lakh.