Maintaining the required minimum balance in your savings account can be quite difficult. Lower funds incur additional charges, making you lose money. If this is a recurring problem, then a basic savings bank deposit account might be for you.
A basic savings bank deposit account, or BSBDA account, is a no-frills zero balance account introduced by the RBI in an attempt at financial inclusion of the masses. Commonly known as the BSBDA small account, it is offered by several public and private sector banks across the country.
The process of opening a BSBDA account is very simple, and the benefits are multifold. The following points elaborate on each of their features:
Most banks have their own eligibility criteria for a BSBDA account based on the applicant’s age and income. The documentation required may also differ from bank to bank – some banks require valid photo ID and address proof, while some others may ask for either of the two.
It is important to note that you cannot open a BSBDA account while you hold other saving accounts. You must first close your other accounts within 30 days of opening the BSBDA small account.
* How to open a BSBDA account online
While most banks ask you to visit the bank branch and sign paperwork that you must physically submit, leading banks have digitised the entire process. You can apply online and also open a BSBDA account online without visiting the bank branch.=
* Benefits of a BSBDA Small Account
The BSBDA account offers very simple, yet essential benefits to its holders, such as:
- No minimum account balance: Banks charge customers whenever the minimum balance is not maintained. However, BSDBA account holders have no such hassles since these are zero balance accounts. There are no penalties or charges involved unlike normal savings accounts.
- Similar rate of interest as other savings accounts: While most banks offer an interest of 4% on savings accounts, BSBDA small account holders, too, enjoy the same rate of interest.
- Cheque book: Generally, banks annually offer one free cheque book of 20 leaves to BSBDA customers.
- ATM card, passbook: Banks provide a free ATM card to BSBDA customers, along with one free passbook annually.
- Free mobile and net banking: Banks do not charge BSBDA customers for access to mobile and net banking services.
- Up to four-five cash withdrawals per month depending on the bank: Bank withdrawals include ATM withdrawals, NEFT and RTGS fund transfers, branch withdrawals, etc. Some banks charge their customers for exceeding the withdrawal limit, while leading banks offer unlimited withdrawals per month.
- Fixed and recurring deposits: BSBDA account customers can open fixed deposits or recurring deposits without any restrictions.
The features listed above can vary from bank to bank. It is best to find out the features your bank offers its BSBDA account holders before opening the account.