Indian Overseas Bank Zero Balance Account – Features & Benefits

Key Takeaways
 

• The Indian Overseas Bank Zero Balance Account requires no minimum balance and is ideal for students, workers, and pensioners.
   
• You can open the account online or offline with simple documents like Aadhaar and PAN.
   
• It offers interest up to 3.25% per annum and includes ATM access, SMS alerts, and digital banking.
   
• The welcome kit and customer support make it easy to use, even for first-time account holders.

An Indian Overseas Bank Zero Balance Account allows customers to hold a savings account without maintaining any minimum monthly balance requirement.

Suresh, a school teacher in Coimbatore, earns ₹15,000 per month. After rent, bills, and groceries, only ₹1,500 remains. He often gets charged by banks for not maintaining a minimum balance. 

But when he opens an Indian Overseas Bank Zero Balance Account, he saves ₹500 monthly in penalties. With no balance limit, he also earns interest on the leftover amount. Over 12 months, he saves ₹6,000 and feels less financial pressure. For people like Suresh, this account makes banking easier and cheaper.

This blog explains the features, benefits, charges, eligibility, interest rates, and application process of the Indian Overseas Bank Zero Balance Account.

Indian Overseas Bank Zero Balance Account Overview

Indian Overseas Bank is a trusted public sector bank established in 1937. With over 3,200 branches, it offers reliable services across India. A zero balance account is a basic savings bank deposit account where customers are not required to maintain any monthly average balance.

The Indian Overseas Bank Zero Balance Account is ideal for students, pensioners, low-income workers, and people who want a simple account without penalties.

Let us compare a regular savings account with an Indian Overseas Bank Zero Balance Account to understand the key differences:
 

As shown in the table, the Indian Overseas Bank Zero Balance Account offers the same benefits as a regular account but removes the pressure of maintaining a minimum balance.

Types of Indian Overseas Bank Zero Balance Account

Indian Overseas Bank provides different zero-balance account options to suit various customer needs. These include:

1. PMJDY Account (Pradhan Mantri Jan Dhan Yojana)

This is part of the government’s financial inclusion programme. Any Indian citizen above 10 years can open this account.

Example: Ravi, a 15-year-old school student, opens a PMJDY account and receives a RuPay debit card with accident insurance of ₹2,00,000.

2. Basic Savings Bank Deposit Account (BSBDA)

This is a standard zero balance account available to all citizens. It offers basic banking features like ATM cards, passbooks, and online services.

Example: Aruna, a homemaker, opens a BSBDA account. She doesn’t need to maintain a balance and can still use net banking and UPI.

3. Student and Pension Accounts

Indian Overseas Bank also provides zero balance options for students and pensioners with tailored benefits and fewer documentation needs.

Example: Gopal, a retired army man, opens a pension-linked zero balance account. His pension is credited monthly, and no minimum balance is required.

These are the three types of IOB zero balance accounts. You can select your bank type as per your needs. 

Below is a comparison of the different types of Indian Overseas Bank Zero Balance Accounts and their main features: 
 

Each type of Indian Overseas Bank Zero Balance Account has been designed to support specific needs, from school students to senior citizens.

How to Open Indian Overseas Bank Zero Balance Account Online & Offline

Opening an Indian Overseas Bank Zero Balance Account is simple. You can do it both online and offline depending on your comfort and internet access. The online method is quicker, but the offline method helps those who prefer face-to-face help.

Step-by-step process

Here are the steps for both online and offline account opening methods:
 

Online Process:
 

1. Visit the official Indian Overseas Bank website or download the IOB mobile app.
    
2. Click on “Apply for Savings Account” and choose Indian Overseas Bank Zero Balance Account.
    
3. Fill in your details (Name, Aadhaar, PAN, mobile number).
    
4. Upload scanned documents.
    
5. Complete video KYC (if needed).
    
6. The account gets activated within 1–2 working days.

Offline Process:
 

1. Visit the nearest Indian Overseas Bank branch.
    
2. Ask for the zero balance account form.
    
3. Submit physical copies of Aadhaar, PAN, and passport-size photo.
    
4. The bank officer verifies the details.
    
5. The account gets opened within 2–3 working days.
    

Here is a quick comparison of online vs offline account opening for the Indian Overseas Bank Zero Balance Account:
 

Whether online or offline, opening an Indian Overseas Bank Zero Balance Account is an easy and quick process that works for all types of users.

Indian Overseas Bank Zero Balance Account Fees & Charges

The term “zero balance” means that there is no need to maintain a minimum balance. However, it does not mean all services are free. There are some basic charges for ATM use, SMS alerts, duplicate passbooks, and cheque books.

Here are the current charges associated with the Indian Overseas Bank Zero Balance Account:
 

The Indian Overseas Bank Zero Balance Account has limited charges, most of which are avoidable if services are used within the free limits.

Indian Overseas Bank Zero Balance Account Interest Rates

The Indian Overseas Bank Zero Balance Account also earns interest on the money kept in the account. Even though users don’t need to maintain a balance, any amount saved earns annual interest.

As of 2025, IOB offers 2.75% to 4.00% per annum interest on savings. This is similar to other government banks.

Neha saves ₹1,000 monthly in her Indian Overseas Bank Zero Balance Account. At 3.00% interest, she earns ₹360 in a year. If she saves ₹5,000 per month, her annual interest goes up to ₹1,800.

Let’s look at how much interest can be earned based on different monthly balances.
 

Even small savings in an Indian Overseas Bank Zero Balance Account can grow steadily over time with the added benefit of interest.

Eligibility Criteria for Indian Overseas Bank Zero Balance Account Opening

Anyone who is an Indian resident can apply for the Indian Overseas Bank Zero Balance Account, provided they meet the basic eligibility conditions. This includes individuals over the age of 10, students, workers, and senior citizens.

Ali, a 12-year-old student in Hyderabad, opens an Indian Overseas Bank Zero Balance Account under the PMJDY scheme with his school ID and Aadhaar card. He starts saving ₹200 per month from his pocket money.

Here is a breakdown of eligibility conditions for various types of Indian Overseas Bank Zero Balance Accounts.
 

The eligibility for an Indian Overseas Bank Zero Balance Account is flexible, making it suitable for a wide group of people, especially the financially underserved.

Required Documents for Indian Overseas Bank Zero Balance Account Opening

To open an Indian Overseas Bank Zero Balance Account, applicants need to submit basic documents for identity and address proof. The bank accepts both physical and digital formats for these documents.

These requirements are simple and suitable for first-time users, students, pensioners, or low-income individuals.

The table below shows the common documents required for various types of Indian Overseas Bank Zero Balance Accounts:
 

As the table shows, opening an Indian Overseas Bank Zero Balance Account requires only a few basic documents, making it accessible to almost everyone.

Indian Overseas Bank Zero Balance Account Helpline

Customers may need support while opening or using their account. The Indian Overseas Bank Zero Balance Account comes with dedicated customer care through phone, email, and mobile app.

Whether it’s a blocked card, transaction failure, or balance enquiry – help is always available.

Here’s how you can reach customer support for the Indian Overseas Bank Zero Balance Account.
 

The Indian Overseas Bank Zero Balance Account customer support options are wide-ranging and offer fast help for digital and offline users.

Indian Overseas Bank Zero Balance Account Welcome Kit

After the account is opened, Indian Overseas Bank sends a welcome kit to the customer. This kit includes all the items needed to begin banking comfortably.

Items vary slightly based on the account type, but every user gets an ATM card and account details.

The following table shows what’s included in the welcome kit for different types of Indian Overseas Bank Zero Balance Accounts:
 

The Indian Overseas Bank Zero Balance Account welcome kit ensures users can start using their account smoothly, whether online or at a branch.

Conclusion

The Indian Overseas Bank Zero Balance Account is a strong choice for anyone who wants simple, affordable banking. With no minimum balance requirement, this account allows customers to manage money without worrying about penalties. From students and workers to pensioners, everyone can benefit from the features this account offers.

It also supports digital payments, provides ATM access, and pays interest on your savings. The process to open the account is easy, whether online or offline, and only basic documents are required.

With so many people still outside the formal banking system in India, the Indian Overseas Bank Zero Balance Account is an excellent way to promote financial inclusion. Whether it is for saving, spending, or receiving government benefits, this account makes banking accessible for everyone.

FAQs
 

Can I use an Indian Overseas Bank Zero Balance Account for receiving direct benefit transfers (DBT)?
Yes, you can receive DBT payments directly into your Indian Overseas Bank Zero Balance Account.

Is there a mobile app that works specifically with the Indian Overseas Bank Zero Balance Account for UPI and bill payments?
Yes, the IOB Mobile Banking app supports UPI, bill payments, and account management for zero balance accounts.

Can two people hold a joint Indian Overseas Bank Zero Balance Account under the PMJDY scheme?
No, PMJDY accounts are for individual users only and do not support joint holders.

Are there any special benefits for women opening an Indian Overseas Bank Zero Balance Account?
While there are no exclusive benefits, women can access all standard features without minimum balance requirements.

How long can I keep my Indian Overseas Bank Zero Balance Account inactive before it gets closed or frozen?
The account may be considered inactive if unused for 24 months, subject to bank policy.