Question: What Happens If My Bank Account Balance Is Zero?

Can you go to jail for overdraft?

You can go to jail for a overdrawn bank account if the check is written on a closed account and/or if you fail to make good a bad check within 10 days of receiving overdraft notice..

What is the benefit of zero balance account?

Free Benefits All the individual account holders are given some facilities free of cost. These include free passbook and free cash and cheque deposits at any branch. 3. Other benefits The holders of a zero-balance account can get access to a debit card as well as ATM.

What is the limit of zero balance account?

Rs 10,000Zero Balance Savings Account is a type of account where you are not required to have a minimum balance. A majority of banks in India keep a limit of Rs 10,000 per account to maintain the account. Note that banks themselves will not offer a zero balance account, rather customers are required to ask the banks for it.

What is the difference between zero account and normal account?

For, bank customers are not required to maintain any minimum average balance with a zero balance saving account, unlike a normal bank account. … While the regular savings bank account requires the customers to maintain a certain monthly average balance (MAB), there is no need to do so with a zero balance account.

What happens if you have no money in your bank account?

If you don’t have enough money in your account to cover a payment, your bank may simply decline the transaction. … Fees pile up: When you have insufficient funds, your bank will charge you a fee—usually between $27 and $35. Also, whoever you tried to pay will most likely also charge you a fee.

Is it bad to have an empty bank account?

If you empty the bank balance and do not close the account, bank will start levying penalty for not maintaining minimum balance. … If you maintain the minimum balance and don’t make any transactions further, then that is fine. But if you are holding a zero balance account then you will not be charged or fined.

What does a zero balance mean?

What is a zero balance? A zero balance is what shows on a credit card customer’s bill when the outstanding balance has been paid and there were no new charges during the billing cycle.

What are the disadvantages of zero balance account?

5. All banks invariably limit the aggregate of all credit in a financial year to Rs. 1 lakh in case of Zero Balance Accounts. No further credit transactions are allowed until the end of the said financial year on exceeding the said limit.

How long can you be negative in your bank account?

Time Varies As a matter of policy, banks vary the time they take to close negative accounts based on the size of the overdraft and the banking history with the consumer. This is where banking loyalty works in your favor. Many typically wait 30 to 60 days before doing so, while others may wait four months.

How do I check my zero balance?

Ways to check your balance. Give a missed call on a toll- free number 1800 180 2223 or A missed call to the tolled number 0120-2303090 to get back an SMS with your current balance. The service is free of cost and is available for SB/CA accounts.

Is it better to close a credit card or leave it open with a zero balance?

The standard advice is to keep unused accounts with zero balances open. The reason is that closing the accounts reduces your available credit, which makes it appear that your utilization rate, or balance-to-limit ratio, has suddenly increased.

Which bank has zero balance?

Latest Interest Rate for Zero Balance Savings AccountBankName of zero-balance savings accountInterest rateStandard Chartered BankBasic Banking Account0.5% to 4.90%HDFC BankBasic Savings Bank Deposit Account3.50% to 4%Axis BankBasic Savings Account3.50% to 4%ICICI BankBasic Savings Account3.50% to 4%5 more rows