Want To Open A Zero Balance Account? Here Are Your Options

- Nov 26, 2018-

Basic savings bank deposit (BSBD) account is a type of zero balance savings account where average monthly balance (AMB) rule is not applicable. Average monthly balance (AMB) is the minimum average of deposits required by the bank customers in their savings bank accounts. BSBD accounts do not require customers to maintain any particular minimum average balance. Leading banks like State Bank of India (SBI), ICICI Bank, HDFC Bank, among others, offer the facility of opening a BSBD account. Customers get a number of facilities such as free debit and ATM cards and internet banking with BSBD account.

Given below are facilities and interest rates offered by SBI, HDFC Bank and ICICI Bank on basic savings bank deposit (BSBD) accounts:

State Bank of India (SBI)

SBI's BSBD account can be opened by any individual provided he/she has valid KYC (Know Your Customer) documents. It is primarily meant for poorer sections of society to encourage them to start saving without any burden of charges or fees.  SBI's BSBD account can be opened singly, jointly, or with either or survivor, former or survivor, anyone or survivor etc. facility. 

The customer cannot have any other savings bank account, if he/she has a basic savings bank deposit account, noted SBI on it's corporate website-sbi.co.in.  If the customer already has a savings bank account, the same will have to be closed within 30 days of opening a basic savings bank deposit account. There is no minimum and maximum deposit limit on a SBI's BSBD account.

SBI's BSBD provides an interest rate of 3.5 per cent on a balance up to Rs. 1 crore and 4 per cent on a balance above Rs. 1 crore, same as the savings bank account.


HDFC Bank's BSBD account can be opened by any resident individual who do not have any other banking relationship with the lender. It is a zero balance account and also comes with a free Rupay card, noted the lender on its website - hdfcbank.com.

In a HDFC Bank's BSBD account, the total balance should not exceed Rs. 50,000 at any point of time. The total credits in such an account should not exceed Rs. 1,00,000 at any point of time. Also, the total withdrawals and transfers in BSBD account should not exceed Rs.10,000 in a month, mentioned HDFC Bank.

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.


ICICI Bank's BSBD account is available for Indian residents above the age of 18 years only. Customer opening a BSBD account should not be holding any other savings account with ICICI bank. In a BSBD account, the value of all credits during the financial year should not exceed Rs. 1,00,000, noted the lender on it's official website- icicibank.com. The day end account balance should not exceed Rs. 50,000.


The interest rates offered by ICICI Bank on BSBD accounts are the same as those on savings bank accounts. For the balance lower than Rs. 50 lakh, ICICI Bank offers an interest rate of 3.5 per cent per annum. For balances over Rs.50 lakh, the lender offers an interest rate of 4 per cent per annum.