Financial management can be challenging for students. Juggling life with a limited budget is undoubtedly a huge challenge. Things tend to get complicated when at the end of the quarter, a student has to pay penalties for non-maintenance of the minimum balance in an account.
Having a zero-balance savings account is an ideal choice for students. As the name suggests, the savings account demands zero average minimum balance. It is excellent for students who often need help managing responsibilities and must be reminded to check their account balances. There are no monthly, quarterly, or yearly penalties for non-maintenance of balance in a zero-balance account. These accounts are the most accessible and affordable for students.
Let’s discuss what makes a zero-balance account an intelligent choice for a student.
What Are The Benefits of Zero Balance Saving Accounts for a Student?
As per RBI guidelines, there are limited free transactions in a zero-balance account. It is the most affordable choice for students who usually have limited income sources and make fewer transactions every month.
The following are the reasons that a zero-balance account is considered the smartest choice for a student:
ü No obligations to maintain a minimum balance
ü Free IMPS, NEFT or RTGS
ü Zero charges on bank statements via emails
ü Higher interest rates on savings
ü Free virtual debit cards for easy online transactions
When students are free from the restrictions to maintain a minimum balance in their bank account, it encourages them to save more. The virtual debit card enables one to enjoy digital transactions without paying anything for yearly maintenance free. For instance, if you open a zero balance account in 811 Kotak Mahindra Bank, you can save a lot of maintenance free. Account holders get a free virtual debit card.
How to Open a Zero-Balance Saving Account When You Are A Student?
With your bank account, transactions and online shopping become easier. The interest earned on savings is another benefit. The question on, how do you open a zero-balance account? Do you need to visit a bank? What type of documents will be required? Digitisation has simplified opening a bank account.
You can open a zero-balance account right from your home. Get started on your mobile with a working internet connection. Here are the steps to open a bank account for students:
- Download the mobile app. In the case of the Kotak 811 app, click on the option to open a zero-balance account after downloading the app.
- Enter basic details, contact number, Aadhaar, and PAN Card details.
- Initiate Aadhaar card authentication, mandatory as per RBI guidelines.
- Enter the Aadhaar authentication OTP you get on your registered mobile number.
- Add nominees, review the communication address, add further details, and request video KYC.
- Turn on the location access on your mobile phone and request a video call from the bank agent to complete the video KYC.
- Present your PAN and Aadhaar cards during the video KYC process and get your login and password. You can use your newly opened zero balance account within a few hours after completing the video KYC.
Must Read: What is FCNR Account?
Who is Eligible to Open a Zero-Balance Savings Account?
Students above the age of 18 years can open a zero-balance savings account. As per RBI guidelines, Aadhaar authentication is mandatory. They must ensure that they have one when applying for a bank account. In addition to this, you can open a bank account digitally without a PAN card. Students who haven’t gotten a PAN card must apply now to enjoy the perks and benefits of having a zero-balance bank account.
Conclusion
Students can pay rent, bills, enjoy online shopping, and earn interest on the money saved with a zero-balance account. You can explore the benefits of banks like 811 Kotak Mahindra Bank, which offers up to 4%* p.a. interest on savings and a free virtual debit card for hassle-free online transactions. If you are a student, get financial freedom and apply for a zero-balance savings account right now.
