Bank Accounts for Students
Student accounts are simply bank accounts made for those who don’t have sufficient money to transact and save but they need bank accounts for some benefits mostly for educational purpose and carrying on their day to day activities during their study
A Savings Account is a deposit account facility provided by the bank wherein you can deposit your savings. Usually, banks offer a Savings Account with the stipulation that you maintain a minimum balance in the account. Else, you will be liable to pay a maintenance fee
In order to encourage people to make savings and open a Savings Account for this purpose, banks also provide a zero-balance saving account. This account is also called No frill account. The central bank had introduced ‘no-frills’ accounts in 2005 to provide basic banking facilities to poor and promote financial inclusion. The accounts could be maintained without or with very low minimum balance. The idea is simple. You can open a Savings Account, but you don’t have to maintain a minimum balance for it. Despite this, the bank will still provide the usual facilities that come with a regular Savings Account
Here are some of the features of a zero-balance Savings Account:
- No Minimum Balance
As the name of the account implies, this is a zero-balance account. Therefore, you do not need to maintain a minimum balance. Consequently, there is no penalty in case of zero balance. This is the main allure for customers when opening this type of account.
- Free Passbook
All individual account holders get a free passbook when they open a Savings Account. This is true even for zero-balance accounts.
- Easy Transaction
You can make your payments through this account via various Net Banking facilities. You can pay for utilities such as electricity, phone, and water through this account.
- Debit Card and ATM access
You will get an ATM/Debit card with your zero-balance account. as such, you can access the account through any of the bank’s ATM outlets anywhere.
- Mobile and Net banking
You can also check your bank statements, send and receive money through net banking facilities. And you can make it all happen from your PC or even your phone.
- Free Cash and Cheque deposits at any branch
As previously stated, banks will offer the usual facilities that come with a regular Savings Account for a zero-balance account as well. This also includes facilities such as cash and cheque deposits, which can be done at any branch of the bank.
- Payment Gateway
The ATM/Debit card you get with your zero balance saving account can also be used to make online payments. The card functions on electronic payment gateway systems such as RuPay which allow for easy and convenient online payments.
- Locker facilities
Some banks have different varieties of zero-balance accounts based upon your specific requirements, and they may also offer Safe Deposit Locker facilities which you can choose to avail.
Documents Required to Open No Frill Account
- Proof of identity:
- PAN Card, Aadhar Card, Passport, Driving license, Voter’s ID card, etc.
- Proof of address:
- Aadhar Card, Passport, Driving license, Voter’s ID card, etc.
- Form 16 (only if PAN card is not available)
- 2 latest passport size photographs.
While a Zero Balance Saving Account is a good place to start with hassle free savings, there are certain things you need to keep in mind when operating your account. Zero-balance accounts usually allow a limited number of transactions per month. After all, the purpose of such an account is to encourage you to save your money, while at the same time providing you with the option of liquidity in case of an emergency.
Usually, banks will allow you four monthly withdrawals from your Savings Account. If you do make more than the allowed number of withdrawals, then the bank will simply convert your zero-balance account into a regular Savings Account. Some banks though, may charge you a nominal fee for these extra transactions.