How to open zero balance account?

With Kotak811 you can Open Zero Balance Account Online or Download Instant Savings Account Opening App from Google Play Store

Get a Kotak811 zero balance account in a few minutes, right from your home.Open a zero balance digital savings account and book a Fixed Deposit and apply for Credit Card online today.

Getting a credit card is now easier and quicker. Apply for your card online without any documentation while we set up your 811 savings account. During the 811 account opening journey, give consent to check your CIBIL score and continue your account opening journey and we will check your eligibility for the card. Basis eligibility, on the Thank you page, you can complete the credit card application by submitting your employment details.

Don’t worry, you can still get a Dream Different credit card which is a card against the fixed deposit. You can open this account online without income proof or a salary slip. You can complete your credit card application online without any documentation. This card is against fixed deposit and you get a 90% credit limit. Why go for a Credit card against a fixed deposit? Get this card and use it at a regular frequency and pay your dues on time. It helps you to build your CIBIL score and improve your CIBIL score. A good CIBIL score helps you get unsecured credit cards and Loans. Enjoy the benefits of interest free cash withdrawals, rewards on all purchases, a credit limit of up to 80% of your fixed deposit amount and a free Credit Card for life - all with the Kotak811 #DreamDifferent Credit Card.

Open zero balance account online from anywhere in India using your phone in a couple of minutes.

Disclaimers:* Applicable for Resident Indian Individuals only w.e.f. Jun 13, 2022, daily balances in Savings Account above Rs. 50 lakhs will earn 4% interest p.a. Daily balances in Savings Account up to Rs. 50 lakhs will continue to earn 3.50% interest p.a. These interest rates are applicable for Resident Accounts only.Issuance of credit cards is at the sole discretion of Kotak Mahindra Bank Limited. All features and benefits are subject to Credit Card Terms and Conditions. Please read the Credit Card terms and conditions carefully provided on the bank website https://www.kotak.com/en/home.html

Kotak Bank Registered Address: 27BKC, C 27, G Block, Bandra Kurla Complex, Bandra (East), Mumbai, Maharashtra, 400051

DisclaimersProviding Aadhaar is voluntary. Scan and Pay through your Kotak Mobile Banking App at select in-store outlets.

What is a Zero Balance Savings Account?

A zero balance savings account is a type of savings account where account holders do not have to maintain any average monthly balance (AMB).

Need help? Give us a call at 1860 2660 811 (Monday to Saturday 9.30 AM to 6.30 PM excluding Bank holidays) or check out our FAQs & Terms and Conditions. (Local call charges apply).

A zero balance savings account is a type of savings account where the Monthly Average Balance (MAB) is waived off. There is no hidden charges associated with a zero balance savings account. In a normal savings account, customers have to maintain a monthly average balance in the account at all times and if by any chance the required criteria are not met, an additional fee or penalty is charged. When customers open a zero balance account, they are entitled to earn interest on the entire amount deposited in the account.

Open Digital Savings Account or Download Kotak811 Instant Savings Account Opening App

Every individual who is a resident of India is eligible to open a zero balance account. To open a zero balance account online, one needs to have a valid Aadhaar and PAN card. As per RBI’s regulation, banks can open a savings account online through Aadhaar OTP verification.

It is easy to open an online bank account in a few minutes. You need to visit Kotak811 Website or download the Instant Savings Account Opening App. Share some basic information. The entered details will be validated at our end.

The next step is to complete your KYC online or offline. Either you can book an appointment with a bank official to complete the video KYC process from the comfort of your home or visit the nearest branch to submit the KYC documents.

Online bank account opening with zero balance is quick and easy with Instant Savings Account Opening App.

Steps to open a bank account online:

A credit card issued against a fixed deposit is a secured credit card. It is ideal for people who are new to credit or have a low CIBIL score.

In case, your credit score doesn't match the eligibility criteria to issue an unsecured credit card, you can still get a credit card by opening a refundable fixed deposit account with us.

Every individual who is a resident of India is eligible to open a zero balance account. To open a zero balance account online, one needs to have a valid Aadhaar and PAN card. As per RBI's regulation, banks can open a savings account online through Aadhaar OTP verification.

A zero balance account (ZBA) is exactly what it sounds like: a checking account in which a balance of $0 is maintained. When funds are needed in the ZBA, the exact amount of money required is automatically transferred from a central or master account. Similarly, deposits are swept into the master account daily.

Corporations sometimes use zero balance accounts to ensure funds are readily available throughout different departments, to eliminate excess balances in separate accounts, and to maintain greater control over the disbursement of funds. These accounts often handle items such as payroll, petty cash and other similar needs.

The master account provides a centralized place to manage an organization's funds. Whenever funds are required in the ZBA checking account to cover a charge or transaction, money is transferred from the master account in the exact amount required. There is no need for an employee to do this manually, as the process is fully automated.

Using a ZBA to fund debit cards issued by the organization helps ensure that all of the activity on the cards is pre-approved. Since idle funds are not present within the ZBA, it is not possible to run a debit card transaction until funds are supplied to the account.

The use of a ZBA as a spending control mechanism is especially helpful when managing incidental charges across a large organization. By limiting quick access to funds via debit cards, it is more likely that proper approval procedures will be followed prior to the completion of a purchase. This permits easy tracking of transfers and reconciliation across accounts.

Transactions from ZBAs are self-managed, often saving the account holder time for having to manually rebalance or fund transactions. ZBAs may also be easier to reconcile, audit, or receive department-level reporting on spending.

Because so much of ZBAs is automated, many companies find there are less clerical errors or transaction failures due to human error. This saves on overdraft fees. ZBAs are also great control mechanisms to monitor spending. If a company has one main account instead of many accounts with bank balances, a company can mitigate the chance of their bank account being compromised by unapproved or fraudulent transactions.

By concentrating funds in the master account, more money is available for investments rather than having small dollar amounts idle within a variety of subaccounts. The master account often has additional benefits such as a higher interest rate on balances. Thus, ZBAs maximize funds available for investment and minimize the risk of overdraft fees.

There are some downsides to ZBAs. Though sweeping and transfers are automatic, the business must still reconcile bank statements and monitor for failed transactions. Should a transaction fail to process or be canceled, money moved into that account may automatically swept back resulting in multiple unnecessary transactions. Last, though intended to relieve administrative burdens, ZBAs proliferate the number of bank accounts a company owns and may result in higher admin demands.

Not everyone can qualify for a ZBA. Banks will often not offer this product to general consumers and will only offer this solution to companies. In addition, banks may not provide ZBAs to small, unestablished businesses.

By its nature, ZBAs must have a linked master account, and the bank offering the ZBA will likely require the master account be held at their institution. The bank may require transaction history evidence, historical average bank balances, estimated spend projections, and applicable credit history information prior to opening the account.

An organization may have multiple zero balance accounts to improve budget management and make the process of allocating funds more efficient. This can include creating a separate ZBA for each department or function as a way to monitor daily, monthly, or yearly charges.

Other reasons for creating separate ZBAs might involve the financial management of particular short-term projects or those at particular risk for unexpected overages. The use of zero balance accounts helps to prevent excess charges without proper notification and approval.

If you’re a business owner, a ZBA might be just the thing to level up your business accounting.

A zero balance account is just that: a business checking account that maintains a zero balance at the end of each day. When the business needs money, the exact amount moves from a connected “parent” account into the ZBA.

Businesses may use the funds to cover expenses such as payroll, petty cash and different department needs. If any funds are left in the account at the end of the day, they are swept back into the main account where the money can earn interest, often at a more favorable rate.

ZBA accounts are sometimes referred to as subsidiary accounts, though not all sub accounts are ZBAs.

In many cases, zero balance accounts can help business owners better track their financials to prevent auditing disasters and avoid fraud.

ZBAs may even reduce costs by automating transfers, moving idle funds into interest-bearing accounts, and protecting against overdrafts—allowing you to focus on developing and running your business while your money works for you.

For a zero balance account system to work, you must first have a main parent account where all your money is centralized. From there, a ZBA would be a “child” or offspring account, where money flows “down” for payments and “up” for receivables or deposits. A business may have multiple ZBAs and even different tiers of the accounts.

Once checks are presented against a ZBA, the bank automatically debits the main account and moves the funds into the ZBA so you don’t have to monitor and make those transactions yourself. Conversely, when deposits are made into the ZBA, the bank automatically moves them back into the parent.

Here are some of the pluses of using ZBAs for business accounting.

Although ZBAs provide many advantages, there are some drawbacks to consider.

Zero balance accounts are best suited for established businesses that need to streamline their operating accounts, run multiple locations or departments, have a solid cash flow and operate a large payroll.

ZBAs are not designed for consumers or for business owners with few employees, low cash flow and no distinct departments.

Banks have certain minimum requirements before they’ll consider opening ZBAs attached to your main business account. Zero balance account banks may have their own unique sets of qualifications, but here are some common ones:

Each ZBA bank has its own application process, many of which begin online with a basic query and request for information. You can also schedule an appointment to talk with your personal banker, the bank’s business team or its treasury management department to begin a formal application process.

If your bank determines a ZBA is right for you, it can help you decide how many zero balance accounts you need, along with how many tiers.