If you’ve ever browsed online for a zero-balance savings account, you may have come across basic savings bank deposits, or the BSBD account. The basic savings account offers certain minimum facilities, free of charge, without any requirement of minimum balance. It was designed to provide most basic banking services to the impoverished section. Apart from the zero-balance requirement, banks are free to provide additional value-added services – such as issuance of cheque book, on these account for a nominal fee.

But there’s more to these savings accounts. If you open a basic savings account in a bank (say XYZ bank), you cannot open any other savings account in that (XYZ) bank. If you have a savings account in XYZ bank, you will have to close it within 30 days of opening the BSBD account with XYZ bank. But you can still open an FD (fixed deposit) or RD (recurring deposit) account with the same bank. Additionally, the Reserve Bank of India says that before a bank opens a BSBD account, it must take a declaration from the customer that he/she does not have a BSBD account in any other bank. Simply put, you can only have one BSBD account.

While a zero-balance savings account may sound attractive, it comes with its own set of drawbacks. Here, we will list out the pros and cons of the basic savings account so you can make an informed decision.

The PROS of a basic savings account

Here are the benefits that you can enjoy if you wish to open a basic savings bank deposit.

1. No minimum balance required – As mentioned earlier, the lack on minimum account balance is the salient feature of the BSBD accounts. This empowers customers with lack of financial resources to avail the basic banking services.

2. Similar interest rates – Most banks provide the same interest rate on BSBD accounts as they do on other savings accounts.

3. Free basic banking services – All the basic banking services such as deposit and withdrawal of cash, sending & receiving money through electronic payment channels (such as UPI, NEFT, RTGS), ATM cash withdrawal, etc., are available to the account holders without any charge.

The CONS of a basic savings account

1. Only 4 debits per month – On a BSBD, you can only make a total of 4 debits across ATM, electronic transfer, or directly from the bank branch. Meaning, if you have withdrawn money from ATM twice and made a fund transfer via UPI, you can only avail one more debit on your account.

2. Cap on debit & credit amount – Apart from the restriction on debit frequency, basic savings accounts also have an upper cap on the amount of money that can be debited or credited. The total of debits by way of cash withdrawals & transfers cannot exceed Rs. 10,000 in a month. Similarly, the total credits in BSBD accounts cannot exceed Rs. 1,00,000 within a year.

3. Cap on the maximum amount – While there is no restriction on the minimum amount in a basic savings account, there is a cap on the maximum amount that these accounts can hold. The Reserve Bank of India says that at any point of time, the account balance in a basic savings bank deposit cannot cross Rs. 50,000.

Open a savings account with IndusInd Bank

If you wish to open a basic savings account, you can go for Indus Easy Account which offers the maximum benefits with minimum requirements. You can enjoy all your basic banking facilities at zero minimum balance. If you want to enjoy big discounts, guaranteed cashbacks, premium doorstep banking services, etc., you can opt for our best-in-class Indus Delite, Indus Privilege and Indus Digi-Start Savings Account. These accounts come with a nominal minimum balance requirement so you can get the best of both worlds!

Apart from the exciting rewards, these accounts also offer simple and convenient banking. You can also:

1. Open a savings account from the comfort of your home with Video KYC. 2. Fulfill all your banking needs from in a few clicks on Indus Mobile App. 3. Choose from a range of savings accounts that best meets your savings goal.

4. Select an account number of your choice. (My Account My Number) 5. Get attractive interest rate on your savings account balance.

So, what are you waiting for? OPEN NOW.

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.

From security and convenience to access to cash and attractive rewards, availing a debit card with your savings account lets you enjoy a number of advantages.

Popularly referred to as plastic money or plastic cash, debit cards have veritably revolutionised monetary transactions the world over. From the neighbourhood grocery store to international websites, the debit card enjoys universal acceptance, making it a secure and convenient means of paying money. Given the great utility of this simple plastic card, most banks today offer it to customers at the time of opening a savings account. If you are still mulling over whether or not to avail a debit card with your account, read on to find out why it is essential to opt for a debit card with your account.

5 Good Reasons to Avail a Debit Card with Your Account

1. Convenient & Easy to Use

A debit card offers a high level of ease and convenience. Since the payment is deducted directly from your bank account, the transaction is inevitably smooth and instant. Besides, it is super-easy to use, merely requiring the cardholder to remember their PIN (Personal Identification Number).

2. Access to Cash

Many people think of payment apps as performing nearly the same functions as a debit card. However, the latter has a distinct edge over the former – it allows you to withdraw cash from an ATM, eliminating the need to visit your bank for cash withdrawal.

3. Safe & Secure

A debit card comes with robust security features such as the four-digit PIN which you could set and change yourself. Moreover, you get SMS alerts whenever a transaction is made. Even online payments via your debit card are typically approved only after a One-Time Password OTP sent to your registered mobile number is correctly entered. Last but not least, your debit card can quickly be frozen online, preventing potential theft.

4. Rewards & Cash-back

In the past, credit cards – not debit cards – were known for offering attractive rewards and cashback options to customers. However, many banks today offer debit cards with similar attractive features. For instance, you could get discounts on specific products or services or earn reward points on using your debit card.

5. Helps Set & Stick to a Budget

With a debit card, you cannot spend more money than you have in your account. This automatically precludes the possibility of going into debt. Since the money is deducted from your account every time you transact, a debit card helps you set and stick to a budget.

The Indus Delite Savings Account from IndusInd Bank is one of the best savings accounts that comes with a debit card loaded with attractive offers and discounts. The Indus Delite Savings Account is set apart by such special features as nil charges for non-maintenance of balance, the chance to earn 6x rewards on debit card spends, cash-back offers on shopping with your debit card, free movie tickets, and plenty more.  The best part? This zero balance account can be instantly opened online using only your Aadhar and PAN card! Delightfully, the Indus Delite savings account merely requires you to pay a small charge as a debit card fee and fund your account with an initial funding amount.

Open an Indus Delite Savings Account today and experience the joys of banking with convenience!

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision.  IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.