A zero-balance current account is a current bank account with no minimum balance requirement. When comparing current account vs savings account, regular current accounts have higher minimum balance requirements and no interest earnings. Still, small business owners use these current accounts to support their business operations without financial limitations. However, these accounts have some limitations as well.
Read on to learn about zero-balance current accounts and how to open one.
Benefits of a Zero-Balance Current Account
- Holding a zero-balance current account offers several advantages for individuals and businesses. Firstly, with no minimum balance requirement, you don’t need to maintain a certain amount of money in your account at all times, which can be especially beneficial for those with fluctuating income or limited funds.
- Secondly, zero-balance current accounts typically have no or low maintenance fees, saving you money on monthly charges. This makes them a cost-effective option, particularly for small businesses or startups looking to minimise expenses.
- Additionally, having a zero balance in your current account provides greater flexibility and convenience in managing your finances. You can deposit and withdraw funds as needed without worrying about maintaining a specific balance, making it easier to access your money when required for business transactions or personal expenses.
- Furthermore, zero-balance current accounts often come with digital banking features such as online banking and mobile banking apps, allowing you to conveniently monitor your account activity, make payments, and perform other banking tasks anywhere.
- A zero-balance current account offers financial flexibility, cost savings, and convenient banking services, making it an attractive option for individuals and businesses seeking a hassle-free banking solution.
Stepwise Process to Open a Current Account Online
Since a zero-balance current account is restrictive, here is the stepwise procedure to open a regular current account:
- Research, compare, and select a bank offering the facility of zero-balance current accounts.
- Visit the bank’s website or download their app to meet the needs of opening a current account online.
- Select the option to open a zero-balance current account.
- Fill out the online account opening form with the required business and personal details.
- Prepare the necessary documents, including identity and address proof.
- Upload scanned copies of the necessary documents.
- Review the application form and submit it.
- Let the bank complete the verification process.
- Provide any extra documents or information if the bank requests.
- Receive bank confirmation after application approval.
- Follow the instructions to activate the account and set up net banking access.
Documents Required to Open a Current Account Online
Although the documents required to open a current account vary by the entity type, these are some standard requirements:
- Proof of business or activity, including the following
- CST/VAT/ GST certificate
- A municipal authority-issued certificate or licence under the Shop and Establishment Act
- A Certificate or registration document issued by Professional Tax, Service Tax, or Sales Tax authorities
- Complete ITR in the sole proprietor or firm’s name reflecting income (duly authenticated and acknowledged by the tax authorities.
- Importer Exporter Code issued by the office of DGFT/ Licence/certificate of practice issued in the proprietor’s name by a professional body incorporated under a statute
- TAN Allotment Letter issued by NSDL in the firm’s name
- Certificate or License of Registration under a specific Act or Statute of the government
- Utility bills such as water, electricity, and landline phone bills
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- Identity and address proof, including passport, voter ID card, driving license, Aadhaar card, PAN card, and letter issued by the National Population Register
- Self-declaration in the prescribed format
A zero-balance current account benefits many, as it has no minimum balance requirement. Considering the current account vs savings account, a current account can be a good banking solution for those with limited finances and high flexibility requirements. However, the minimum balance requirement for regular current accounts is low, and maintaining it is not a concern for most. For those looking for a current account with comprehensive services and support, a full-fledged account from Banks like Kotak 811 allows you to enjoy the benefits of the service without going to the bank! So, make your decision wisely.
