Zero balance savings account: A BSBD account does not require a minimum or maximum limit.
A basic savings bank deposit (BSBD) account does not require any minimum balance. A BSBD account is a type of zero balance savings account and does not require customers to maintain any particular minimum average balance. Key banks like State Bank of India (SBI) and Punjab National Bank (PNB) offer the facility of opening this zero balance account. Private sector lenders like HDFC Bank and ICICI Bank also offer the facility. Customers get a number of facilities such as debit and ATM cards and internet banking with BSBD account.
Zero Balance Savings Account: Facilities and interest rates of SBI, Punjab National Bank (PNB), HDFC Bank and ICICI Bank on BSBD accounts in detail:
State Bank of India (SBI):
One can open SBI's BSBD account singly, jointly, or with either or survivor, former or survivor, anyone or survivor etc. facility, said SBI on its official website -- sbi.co.in.
Benefits of SBI's BSBD account:
A basic RuPay ATM-cum-Debit card will be issued free of cost and no annual maintenance charge will be applied. The receipt/ credit of money through electronic payment channels like NEFT/RTGS is free. The deposit/collection of cheques drawn by central/state governments is free. There is no charge on activation of inoperative accounts and closure of accounts.
The interest rates offered by SBI on BSBD accounts are the same as those on regular savings bank accounts. For savings deposits balance up to Rs. 1 crore, BSBD accounts offer an interest rate of 3.5 per cent per annum. On savings deposits balance over Rs. 1 crore, the BSBD account offers an interest rate of 4 per cent per annum.
Punjab National Bank:
PNB issues a cheque book of 20 leaves free of cost in a year, the bank said on its official website pnbindia.in. Thereafter, normal cheque book charges would be applicable.
There will be no limit on the number of deposits that can be made in a month, said the bank on its website. BSBD account holders will be allowed a maximum of four withdrawals in a month, including ATM withdrawal.
Facility of ATM-cum-debit card shall be available without any charge. However, annual maintenance charge shall be recovered. No charge will be levied for non-operation/activation of in-operative BSBD accounts.
Interest rates of PNB's Zero Balance Savings Account (BSBD):
On account balance above Rs. 50 lakh and above, PNB offers an interest rate of 4 per cent. On account balance of up to Rs. 50 lakh, the Bank pays an interest rate of 3.5 per cent.
Customers can access the network of branches of the bank through this account. Key features of HDFC Bank BSBD account include zero balance and a free Rupay card, according to HDFC Bank on its website - hdfcbank.com.
Benefits of HDFC Bank's BSBD account:
HDFC Bank issues a free passbook facility for all individual account holders and customers also get free cash and cheque deposit facility at branches and ATMs. Customers get four withdrawals free per month including ATM/RTGS/NEFT/clearing/branch cash withdrawal/ transfer/ internet debits/ standing instructions/EMI, etc.
Interest rates of HDFC Bank's Zero Balance Savings Account (BSBD):
On account balance above Rs. 50 lakh and above, HDFC Bank offers an interest rate of 4 per cent. On account balance below Rs. 50 lakh, HDFC Bank pays an interest rate of 3.5 per cent.
Benefits of ICICI Bank's BSBD account:
ICICI Bank offers a passbook facility, Rupay card facility 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.Internet banking facility is free.
Interest rates of ICICI Bank's Zero Balance Savings Account (BSBD):
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, ICICI Bank offers an 3.5 per cent per annum. For balances over Rs. 50 lakh, ICICI Bank offers an interest rate of 4 per cent per annum.
It will also allow mobile wallets to issue UPI handles and cards. This will enable non-bank prepaid payment instruments (PPIs) to act as quasi-banks in terms of payments, increasing tension between mobile wallet companies and payments banks, said industry experts.
“Card networks are allowed to onboard PPI issuers... Non-bank PPI issuers are permitted to participate as members/associate members of authorised card networks,” said the RBI guidelines released on Tuesday.
By allowing PPIs to issue cards for withdrawals, mobile wallets will be almost on par with payments banks. The only difference will be that payments banks will pay interest on deposits, while wallet balances will not yield any return, said an industry expert, requesting anonymity.
“From a business perspective, the wallet companies will need to figure out how to use interoperability to develop different use cases. It is definitely a progressive step and we need to see how wallet operators can build on this and how this might eventually impact the idea of payments banks. The cost of entry into a new industry is likely to get lowered,” said Ashish Aggarwal, senior director and head of public policy at Nasscom.
In August, some payments banks had approached RBI to voice their opposition to mobile wallet interoperability as it could directly affect their business models, and put them at a disadvantage.
Payments banks will have an edge over wallets on deposit amounts and the interest paid. While payments bank customers can retain deposits of up to ₹1 lakh in their accounts, for full-KYC wallets, the total amount loaded in a month cannot exceed ₹10,000 (annual amounts are limited to ₹1 lakh).
According to Sunil Kulkarni, joint managing director at Oxigen Services (India) Pvt. Ltd, an e-wallet and payment solutions company, there has been a fundamental change in wallet businesses with the permission to join UPI and card networks, which will speed up digitization offline and online.
“It would have been great if full functionality of UPI was granted to wallets. Currently, UPI application of banks allow the users to add other bank accounts on the same app, but wallet users will not be able to transact directly from other bank accounts. We hope that in the next phase, this is also enabled,” said Kulkarni of Oxigen.
The RBI also said that in cases where PPIs are issued in the form of wallets, interoperability across PPIs shall be enabled through UPI. Where PPIs are issued in the form of cards, the cards shall be affiliated to authorized card networks.
Having too many bank accounts can make keeping track of them overwhelming.
But different accounts can help you achieve and organize your financial goals. Each account should have a purpose. Whether that’s to get a sign-up bonus, to get ATM fees waived or to separate your savings from your everyday checking.
Accounts start to add up over time. From credit cards opened up many years ago to a new 401(k) each time you join a new employer that offers one.
The goal is to have enough bank accounts to manage your finances effectively, but not to have too many accounts that makes it challenging to track.
Financial accounts, like wrinkles, proliferate as you venture further into adulthood.
Where there was once a single checking account to house your first paycheck, now there are savings accounts, money market accounts, credit cards, 401(k)s, mortgages, 529s, and maybe even a home equity line of credit (HELOC) or a health savings account.
Each new product comes with a purpose — earning a sign-up bonus, saving for your kid’s tuition, preparing for retirement — but soon you’re left with an overwhelming list of log-in IDs, passwords and interest rates. This situation is rarely ever planned, and very difficult to control.
Making sense of your constellation of accounts isn’t simply a question of finances. It also gets to the heart of your values. Should you share a checking account with your spouse, or does a marriage benefit from a bit of privacy? How much of your paycheck should you put into joint accounts, and how much into your personal accounts?
Where to start? A bank account is the lattice from which you build your personal finances, and you should, from time to time, take stock of not only where your money is located, but why it’s there.
Checking account vs. savings account
Checking and savings accounts are purposeful financial instruments that should be used for specific goals.
A checking account is the way station of your finances — money comes in from your paycheck, and exits to pay bills. A savings account is your rainy-day fund.
Financial planners recommend you hold three-to-six months’ worth of expenses as a hedge against bad stuff — like a layoff or a health scare. How much you need depends on your particular cost of living.
Amassing this cache is vitally important, and something that Americans continue to struggle with, since nearly three in 10 adults don’t have emergency savings, according to Bankrate’s June 2019 Financial Security Index.
An account shouldn’t cost you
The function of checking and savings accounts, then, is to make sure your money is in the right place at the right time.
While you should absolutely look for the highest yield possible, you should also be highly sensitive to fees. Your struggle to save shouldn’t be made that much harder by nickel-and-diming.
Even small fees can add up over time and chip away at your account balance, especially since you are inexplicably loyal to your financial institution. Overdraft fees charge an average of $33.36, according to Bankrate’s 2019 checking account and ATM fee study , while out-of-network ATM fees cost $4.72.
Around 42 percent of non-interest checking accounts are considered free, according to the Bankrate study. This is the highest percentage of free accounts since 2011, so these accounts are becoming easier to find. The average monthly service fee on interest-bearing accounts is $15.05.
One dip into each fee bucket will cost you around $50, draining your potential savings.
How many bank accounts should you own?
The average American owns around four credit cards, according to Experian. Mortgages (54 percent) and credit cards (53 percent) are the most common debts that U.S. consumers have, according to a Dec. 2018 CreditCards.com survey.
Plus each time you change jobs, you’re likely to enroll in a new 401(k). Each new child added to your family not only brings more diapers, but another 529 plan to manage as well.
When it comes to the nuts and bolts of your bottom line, think minimalism.
“If you can open one less account, do it,” says Conrad Ciccotello, a professor at the University of Denver.
Everyone needs at least one checking account and should consider one savings account too.
Couples often maintain a joint checking and savings account for the family’s finances — mortgage payments on one hand, and the emergency fund on the other — while maintaining a separate checking account for personal expenses.
A little privacy and personal ownership will make for a less stressful experience managing your personal finances. No one wants to be hounded over relatively small purchases, especially not by your spouse.
Of course, you shouldn’t hide the existence of the account from your loving partner.
If you have a specific savings goal in mind, separate and apart from your emergency fund, open another account. A higher yielding certificate of deposit (CD) is a good avenue, and will help inoculate the funds from mindless spending.
Set up a direct deposit so the account is properly financed, and give it a name to make the savings goal more tangible, perhaps something like “Dream Vacation Fund.” [COMPARE: Best online savings accounts]
When should you open a new account?
You should consider opening a new account if you’re not happy with your current banking relationship. With so many ways to waive fees, if you’re being charged fees you should reevaluate your banking situation.
Also, banks may come out with newer products that offer better options. Or sometimes the older accounts are better. So evaluate your options to see if a new account fits your needs.
Some banks offer bank account bonuses, usually ranging anywhere from $50-$1,000. These can be a great opportunity to earn more money.
What to look for when opening a new account
When opening a new account, one of the first things you should check into are minimum balance requirements and fees. The goal should be to find an account that won’t charge you fees. If an account does have fees, you can usually waive these by keeping a minimum balance in the account or by having a certain amount direct deposited each month.
Also look at ATM options, since you’ll probably want to access cash at some point. If ATMs are important to you, make sure your bank either has ATMs near you or that it reimburses out-of-network fees.
When not to open a new account
If it’s too difficult and time consuming to keep track of all of your accounts, that might be a sign that you have too many accounts and it’s not time to open a new one. Having too many accounts can cause you to miss fraudulent activity, be overcharged (or double-charged) for a purchase or incur other activity that costs you money.
Also, if you’re really happy with your bank it might not be time to open a new account. But even if you’re generally pleased with your bank, it’s good to see what else is available in the market. This is especially true if you’re paying fees for something that you can get for free, or waived, at another bank.
The benefits of having multiple accounts
Multiple accounts are great if you’re trying to separate money for different goals. It might be best to keep an emergency savings account or a vacation savings account separate from an account that’s used to pay everyday bills. When money is commingled, it’s easier to spend that money on purposes it probably wasn’t intended for.
Having multiple accounts is great, as long as you’re not paying too much in fees. So make sure the account either doesn’t have maintenance fees or minimum balance requirements. Or at least that you’re able to meet the requirements to get the fee waived.
Tips for opening and closing bank accounts
Research any new account before opening it. This includes reading the account agreement, disclosures or any other relevant information that can help you understand the account now to avoid problems later. Make sure you ask any questions you have before opening the account.
When you close an account, make sure you inform your bank. Simply leaving your account balance at zero could cause a domino effect of maintenance fees and overdraft fees.
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My colleague went to SBI today for opening PPF account in his minor boy (20 months old) name with him as guardian. Surprised to hear from bank officials that for opening a CIF no. at branch against Kid's name they need Aadhaar card for Kid ! On the other hand same SBI bank for opening a SSY (Sukanya Samriddhi Yojana) account for girl child no such Aadhaar for girl is required. So weird. Gender bias! Even in 2019 there's absolutely no clarity with SBI and other banks.
SBI customer alert! Bank not responsible for loss if you do this
Rajeev Kumar Financial Express13 November 2019
sbi account details sharing online
More SBI Account Details Sharing Warning: State Bank of India (SBI) has warned that it will not be responsible for any loss if any customer shares his account number, mobile number or any other personal or account-related information publicly on social media. SBI’s strong warning came in response to a customer who had posted her savings account number along with some document while responding to one of the tweets of the bank. SBI also told the customer to immediately delete the information shared online and re-post the query only.
SBI posted: "DISCLAIMER: Please do not share your account no., mobile no. or any personal or account related information publicly on this platform for security reasons. Bank will not be responsible for any loss. We request you to delete the information immediately and re-post/DM excluding such information to enable our team to respond."
"Further, please note that SBI or its employees will never send any payment link or ask for sensitive information like VPA-UPI related, User ID, PIN, Internet Banking passwords, CVV No, OTP, etc., through phone/SMS/email," SBI said.
The customer had posted in response to a tweet by SBI which said that customers can apply for SBI in six ways.
SBI routinely warns customers against practices that may harm their accounts. Last month, SBI had warned customers against clicking on links received through SMS. Fraudsters try to lure SBI customers to click on dangerous links by telling them that their accounts have been suspended and needs verification. "When you receive any message similar to this, not click on such URLs; Never share your personal and/or account details on any suspicious links. Check your account status with your branch only. Report such messages immediately to the local police authorities. Be vigilant, be safe," SBI had tweeted.
SBI is the largest commercial lender in the country in terms of assets, deposits, branches, customers and employees. The bank has the largest network of nearly 22,000 branches in India with an ATM / CDM network of over 58,500. Around 66 million SBI customers are using online banking while mobile banking services is being used by 15 million customers.