You might be interested to know that a ‘No frills account’ or popularly called as a ‘Zero balance account’ which is popular among the private banks, also exists with the country’s largest lender, State Bank of India (SBI). As the name itself says, you do not need to maintain any balance in your account, unlike other savings bank accounts where you need to maintain minimum quarterly balance of Rs.500 or so.
If you an individual aged 18 or above earning at least Rs.5000 a month, you are eligible for a no frills account. This account can be opened either singly or jointly.
But one disadvantage with SBI’s zero balance account is that the maximum balance should not exceed Rs.10000. Also, there will not be Internet Banking facility for this account.
In case your account balance goes over Rs.10000, then it will be treated like a normal Savings bank account.
Apart from this, an ATM cum Debit card will be issued free of cost along with a cheque book.
If you like, you can (or should) also add a nominee for your account and get a passbook too.
The same interest rate of 3.5% will be payable for this Zero balance account.
Note: Although you do not need to maintain any balance, you need to deposit at least Rs.50 to open this account for the first time.
No frills account opening forms are available at all SBI branches except at specialized branches.