AU Small Finance Bank Zero Balance Account – Features, Benefits & Application Guide

What is a Zero-Balance Savings Account?

A zero-balance savings account is a type of bank account that does not require you to maintain any minimum balance. Unlike traditional accounts that may charge penalties or fees for dropping below a set balance, a zero-balance account allows you to operate without such worries. 

Let’s say, Rahul, a 25-year-old software developer, recently started his first job with a salary of ₹50,000 per month. He wanted a dedicated account for salary deposits and daily expenses without worrying about maintaining a minimum balance. To ensure flexibility and convenience, he chose an AU Small Finance Bank Zero-Balance Savings Account.

How Rahul Benefits:

Types of AU Small Finance Bank Zero Balance Account 

AU Small Finance Bank offers zero-balance savings accounts tailored to meet different customer needs, ensuring accessibility, convenience, and a seamless banking experience. One of the key offerings is the AU Digital Savings Account, which is designed for individuals who prefer digital banking.

1. AU Digital Savings Account

The AU Digital Savings Account is a fully digital, zero-balance savings account that provides a smooth and paperless banking experience. This account is ideal for individuals who prefer managing their finances online without visiting a bank branch.

How to open an AU Small Finance Bank Zero Balance Account Online?

Step 1: Visit the official website of AU Small Finance Bank.

Step 2: Hover your cursor over the navbar, and you will see an “Account” section. On the left-hand side of that section, you will see “Savings,” then on the right-hand side, you will see “AU Digital Savings Account.” Click on that.

Step 3: After clicking on that, a new interface will appear on your screen. Scroll down and you will see a button “Open Account.” Click on that.

Step 4: After clicking on that, you have to enter your Aadhar card number and click on the “Verify” button.

Step 5: It will verify your Aadhar Number, and then you have to fill in the details accordingly.

Step 6: After filling in all the details accurately, your AU Small Finance Bank Zero Balance account is ready!

After successful account creation, you will receive your Customer ID and Account Details via SMS and email. You can then log in to AU 0101 NetBanking or the Mobile App to start using your account seamlessly!

How to open an AU Small Finance Bank Zero Balance Account Offline?

If you prefer offline banking, you can open an AU Small Finance Bank Zero-Balance Account by visiting the nearest branch. Here’s a 
step-by-step guide:

Step 1: Visit the Nearest AU Small Finance Bank Branch

• Locate the nearest AU Small Finance Bank branch.
• You can use the bank’s website or customer care to find the nearest branch.

Step 2: Carry the Required Documents

Ensure you have the necessary KYC (Know Your Customer) documents, which typically include:

• Identity Proof: Aadhaar Card, PAN Card, Voter ID, Passport, or Driving License.
• Address Proof: Aadhaar Card, Utility Bill, Ration Card, or any government-issued ID with an address.
• Passport-sized Photographs (as per bank requirements).

Step 3: Fill Out the Account Opening Form

• Request an account opening form from the bank.
• Provide personal details like name, date of birth, mobile number, and email ID.
• Mention that you want a zero-balance savings account.

Step 4: Submit Your Documents

• Attach photocopies of your KYC documents with the form.
• The bank official will verify the documents.
• In some cases, a PAN Card is mandatory, or a Form 60 may be required if you don’t have one.

Step 5: Complete Biometric Verification (If Required)

• If Aadhaar-based e-KYC is available at the branch, you may need to complete biometric verification.
• Otherwise, a physical verification process might be conducted.

Step 6: Receive Your Account Details & Debit Card

• Once your application is processed, you will receive:
  • Your account number & Customer ID.
  • A welcome kit (which may include a passbook and debit card).
  • Login details for net banking & mobile banking.
• You can activate your debit card and start using your account immediately.

AU Small Finance Bank Zero Account Balance Fees & Charges

Below is a detailed breakdown of the fees &  charges applicable to AU Small Finance Bank Savings Accounts.

Account Maintenance & Balance Requirements

AU Small Finance Bank Zero Account Balance Interest Rates

AU Small Finance Bank offers interest on savings account balances based on an incremental slab system. Interest is calculated daily and credited monthly.

Savings Account Interest Rate Slabs

Key Points to Note:

• Daily Interest Calculation: Interest is computed based on the daily closing balance and paid at the end of each month.
• Incremental Slab System: The interest rate varies for different balance slabs rather than applying a single rate to the total balance.
• Higher Returns for Higher Balances: As the balance increases, higher interest rates apply only to the incremental portion.

Example Calculation – ₹400,000,000 Balance

If a customer maintains ₹400,000,000 in their savings account, the interest calculation will be as follows:

Instead of a flat interest rate, the balance is divided into slabs, and each portion earns interest at its respective rate.

Eligibility Criteria for AU Small Finance Bank Zero Balance Account

AU Small Finance Bank offers savings accounts tailored to different customer segments, including individuals, minors, senior citizens, and Non-Resident Indians (NRIs). The eligibility criteria for opening an AU Savings Account are as follows:

1. Age Requirement

• Individuals must be at least 18 years old to open a savings account independently.
• Minors can have a savings account, but it must be opened and operated by a parent or legal guardian on their behalf.

2. Citizenship & Residency

• The applicant must be a citizen of India or a Non-Resident Indian (NRI).
• Foreign nationals may open an account under specific conditions, subject to bank approval and regulatory compliance.

3. KYC Compliance

• Applicants must fulfill the Know Your Customer (KYC) requirements as per the guidelines set by the Reserve Bank of India (RBI).
• KYC documents typically include identity proof (Aadhaar, PAN, Passport, Voter ID, etc.) and address proof (Aadhaar, utility bills, passport, etc.).

By meeting these eligibility criteria, individuals can open an AU Small Finance Bank savings account and enjoy its benefits, including high interest rates, digital banking, and zero-balance options.

Let’s understand it with the help of an example:

Arvind Mehta, a 35-year-old businessman from Jaipur, decided to open a savings account with AU Small Finance Bank to benefit from high interest rates and digital banking services. Since he met all the eligibility criteria, he proceeded with the account opening process.

Eligibility Criteria & Arvind’s Details

Account Opening Process

1. Visited the nearest AU Small Finance Bank branch and filled out the savings account application form.
2. Submitted a self-attested copy of Aadhaar and PAN as proof of identity and address.
3. Deposited ₹25,000 as the opening balance to activate the account.
4. Account was successfully opened, and he received his account number: 1234567890 and IFSC code: AUBL0001234.
5. Received a welcome kit containing his debit card, passbook, and internet banking details.

Documents Required for AU Small Finance Bank Zero Balance Account

To open an AU Small Finance Bank Savings Account, applicants must submit the necessary documents as per banking and regulatory requirements. Below are the key documents required:

1. Officially Valid Documents (OVD) for KYC

Applicants must provide any one of the following documents as Proof of Identity & Proof of Address:

• Aadhaar Card
• Voter ID Card
• Passport
• Driving License
• NREGA Job Card (with the applicant’s photograph and issued by a government authority)

2. Photographs

• Two recent passport-sized photographs must be submitted along with the application.

3. PAN Card or Form 60

• A PAN Card is required for account opening.
• If the applicant does not have a PAN Card, Form 60 must be submitted as a declaration.

4. Additional Documents (If Applicable)

• Senior Citizens: Must provide age proof such as a birth certificate or any valid government-issued document.
• NRIs (Non-Resident Indians): Must submit additional documents like a valid passport, visa, or OCI/PIO card to establish their NRI status.

Depending on the type of savings account, the bank may ask for further documents. Ensuring all required documents are submitted correctly will help in a smooth and hassle-free account opening process.

Example: How Priya Sharma Opened an AU Small Finance Bank Zero Balance Account

Priya Sharma, a 28-year-old software engineer from Mumbai, wanted to open an AU Small Finance Bank Zero Balance Savings Account for easy online banking and better savings management. She ensured she had all the required documents before visiting the bank to avoid delays.

Documents Submitted by Priya

AU Small Finance Bank Zero Balance Helpline

Below are the customer care contact details for AU Small Finance Bank, including toll-free and non-toll-free numbers, along with the official email ID for queries, complaints, and service requests.

Customers can reach out through these channels for assistance with banking services, account-related queries, and complaints.

AU Small Finance Bank Welcome Kit

When you open a new account with AU Small Finance Bank, you receive a Welcome Kit containing essential documents and banking tools to help you get started. This kit includes important details for accessing your account, digital banking services, and other relevant information.

Contents of the AU Small Finance Bank Welcome Kit

1. Customer ID
   • A unique identifier for your account, required for logging into  AU 0101 NetBanking and the AU 0101 Mobile App.
     
     
2. Debit Card
   • If you have opened a savings account, you will receive a debit card for making transactions and ATM withdrawals.
     
     
3. AU 0101 NetBanking Registration Details
   • Instructions to register and activate AU 0101 NetBanking, allowing you to manage your account online.
     
     
4. AU 0101 Mobile App Registration Details
   • Steps to set up and access AU 0101 Mobile Banking, enabling seamless transactions via smartphone.
     
     
5. Account Opening Form Copy
   • A copy of the filled account opening form for reference.
     
     
6. Welcome Letter
   • A formal welcome letter from AU Small Finance Bank, introducing you to the bank's services and key account details.
     
     
7. Terms and Conditions
   • A document outlining the rules, policies, and conditions applicable to your savings account and banking services.
     
     
8. Other Relevant Documents (If Applicable)
   • Cheque Book (if requested).
   • Information on additional banking products and services offered by AU Small Finance Bank.

The welcome kit ensures that new customers have all the necessary details and tools to start banking smoothly with AU Small Finance Bank.

Example: How Rajesh Verma Received His AU Small Finance Bank Welcome Kit

Rajesh Verma, a 32-year-old marketing executive from Pune, recently opened a savings account with AU Small Finance Bank to manage his finances more efficiently. After completing the account opening process, he received a Welcome Kit containing all the essential banking tools and documents.

Contents of Rajesh’s Welcome Kit

How the Welcome Kit Helped Rajesh

1. Easy Access to Banking Services: Using the Customer ID, Rajesh successfully registered for  AU 0101 NetBanking and the AU 0101 Mobile App, allowing him to check his balance and make online transactions.
   
   
2. Convenient Transactions: With his new debit card, he could withdraw cash from ATMs and make online purchases without any hassle.
   
   
3. Important Information in One Place: The terms and conditions document provided him with a clear understanding of banking policies.
   
   
4. Account Reference: Keeping the account opening form copy helped him track the details he had submitted.

Conclusion

AU Small Finance Bank's zero-balance savings account is an excellent choice for individuals seeking a hassle-free and flexible banking experience. With no minimum balance requirement, competitive interest rates, and access to digital banking services, this account is ideal for salaried professionals, students, and anyone looking for a cost-effective savings option.

The incremental interest rate structure ensures that customers earn higher returns as their savings grow. Additionally, features like free debit cards, UPI payments, and 24/7 banking access make it a convenient solution for managing daily finances.

For those looking for an accessible, digital-friendly, and rewarding banking experience, AU Small Finance Bank's zero-balance savings account is a smart and reliable choice.

FAQ’s 

Why is AU Small Finance Bank the best bank for savings accounts?

AU Small Finance Bank offers competitive interest rates and monthly interest credit, which are higher than those of many banks. Open a savings account instantly online with video KYC through our Video Banking facility.

Who is eligible to open an AU Small Finance Bank zero-balance savings account?
Any Indian resident above 18 years can open an account. Minors can open accounts under guardianship.

Can I open an AU zero-balance savings account online?
Yes, you can open it online using Video KYC through AU Small Finance Bank’s website or mobile app.

Is there any restriction on the number of transactions in a zero-balance account?
No, you can make unlimited transactions, subject to regulatory and bank-specific limits.

Do I get a debit card with the AU zero-balance savings account?
Yes, a free debit card is provided, but its features may vary based on the account type.

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