Zero Balance Account
Q. Which of the following is known as a Savings Bank Account opened with a commercial bank with zero balance or very minimal balance?- Published on 07 Feb 17a. Current Account
b. No-frills Account
c. Fixed Deposit Bank Account
d. Students Savings Bank Account
ANSWER: No-frills Account
A no-frills account is a bank account that can be opened and maintained with a zero balance, levies zero charges and does away with the unnecessary services or frills.
The downside of such an account is that most of the facilities offered are limited. Once this limit is exceeded, the bank charges for these services.
What is the difference between a no-frills account and a zero-balance account?
A no-frills account is a real zero balance account in that there is no need to keep any minimum balance in the account and non-maintenance charges are not levied.
Zero balance accounts, on the other hand, do allow you to open the account without any minimum balance, but you may need to fulfill the minimum balance requirements of the bank or you are charged non-maintenance penalties.
