Union Bank Zero Balance Account – Features, Benefits & Application Guide

How the Union Bank Zero Balance Account is Beneficial for Sharma Ji

A retired school teacher, Sharma Ji, recently shared how the Union Bank Zero Balance Account helps him save his finances and manage his banking activities effortlessly. Sharma Ji found the Union Bank Zero Balance Account a perfect fit for both retired and non-retired people with fixed pensions.

He said that the Union Bank Zero balance Account handles household expenses and many other things. Here’s how it has benefited him:

“When I open the Union Bank Zero Balance Account, I feel comfortable with my bank activity, and my mind is at peace because it’s a hassle-free banking solution that doesn’t require me to maintain a minimum balance, which is a big relief for me and my family who lives on a fixed income. The account provides several benefits that make my day more convenient and cost-effective.”

Sharma Ji, explain how the Union Bank Zero Balance Account is beneficial for him:

• I don’t have to worry about maintaining my balance because the Union Bank Zero Balance Account saves me from unnecessary penalties and gives me peace of mind.
  
  
• I received a free ATM card with my account, which allows me to withdraw cash and check my balance anytime.
  
  
• I frequently use UPI and other digital payment methods for small purchases and utility bill payments. The Union Bank Zero Balance Account doesn’t charge me for these transactions, which saves me a lot of money.
  
  
• Even though it’s a zero-balance account, I earn interest on the money I keep. This is a great way to grow my savings without any extra effort.

Sharma Ji’s Annual Savings and Benefits:

• No Minimum Balance Penalty: Saves ₹500 annually (compared to other banks).
• Free ATM Transactions: Saves ₹300 annually (on ATM charges).
• Digital Transaction Savings: Saves ₹600 annually (on UPI and bill payment charges).
• Interest Earnings: Earns ₹1,000 annually (on savings).

Sharma Ji’s Total Savings and Benefits: Almost ₹2,400+ per year!

Types of Union Bank Zero Balance Account Overview

This article provides you with full information about the Union Bank Zero Balance Account according to current offers. The Union Bank allows customers to open an account at zero cost. Here is the information:

1. Basic Savings Bank Deposit Account (BSBDA) - Union Bank

Union Bank offers a  Basic Savings Bank Deposit Account  (BSBDA), which allows customers to open an account with zero balance with an easy banking experience for students, low-income earners, and individuals. 

These accounts are for customers who want a system where they can access the basic savings feature without unnecessary charges. Here are the benefits and characteristics explained in detail below.

Key Features of Union Bank BSBDA:

• Zero Minimum Balance Requirement:
  • The account does not require you to maintain a minimum balance, making it ideal for individuals who may not have a steady income or prefer not to worry about balance requirements.
    
    
• Free ATM Card:
  • The Union Bank provides you with a free ATM card with the BSBDA, which allows you to withdraw cash without any charges, check your balance with an easy system, and you can do other transactions at Union Bank ATMs, which are unobstructed (subject to free transaction limits).
    
    
• Free Passbook:
  • A free passbook is issued with the account, which helps you keep track of your transactions, deposits, and withdrawals.
    
    
• Free Mobile and Internet Banking:
  • Union Bank offers free mobile and internet banking services with the BSBDA.
  • You can quickly check your account balance, transfer funds, pay bills, and perform other banking activities from the comfort of your home or on the go.
    
    
• Interest on Savings:
  • Even though it’s a zero-balance account, you earn 6.50% interest on the money you keep in the account, just like a regular savings account.
    
    

Eligibility for Union Bank BSBDA:

• The account is available to all individuals, including:
  • Low-income groups.
  • Students.
  • Senior citizens.
  • Anyone looking for a basic savings account without the burden of maintaining a minimum balance.

How to Open a Union Bank BSBDA:

• Visit the nearest Union Bank branch.
• Submit the required KYC documents (e.g., Aadhaar card, PAN card, or any other valid ID proof).
• Fill out the account opening form.
• Receive your free passbook, ATM card, and internet banking credentials.

2.  Pradhan Mantri Jan Dhan Yojana (PMJDY) - Union Bank

The Government of India established the Pradhan Mantri Jan Dhan Yojana (PMJDY), which allows you to maintain your household access with remarkable banking services. It is the primary financial inclusion scheme to give you a zero-balance account. Here are the features according to the PMJDY account:

Key Features of Union Bank PMJDY Account:

• Zero Balance Account:
  • The PMJDY account is a zero-balance account, meaning there is no requirement to maintain a minimum balance.
    
    
• Free RuPay Debit Card:
  • Account holders receive a free RuPay debit card, which includes accidental insurance coverage and attractive rewards points (For every ₹100 spent, you earn 1 reward point).
    
    
• Accidental Insurance Cover:
  • PMJDY account holders are eligible for an accidental insurance cover of ₹2,00,000 (subject to terms and conditions).
    
    
• Interest on Savings:
  • You can earn interest through the PMJDY account on your account balance; it is just like a regular savings account.
    
    
• Direct Benefit Transfer (DBT):
  • The account can be used to receive government subsidies, pensions, and other benefits directly through the Direct Benefit Transfer (DBT) scheme.
    
    
• Mobile and Internet Banking:
  • PMJDY account holders can access free mobile and internet banking services to manage accounts, transfer funds, and pay bills.

Eligibility for Union Bank PMJDY Account:

• The account is available to individuals who do not have a bank account, especially those from low-income households.
• Only one account per family is eligible for the overdraft facility (preference is given to the female member of the family).

How to Open a Union Bank PMJDY Account:

• Visit your nearest Union Bank branch or a PMJDY enrollment camp.
• Submit the required KYC documents (e.g., Aadhaar card, Voter ID, or any other valid ID proof).
• Fill out the PMJDY account opening form.
• Receive your free RuPay debit card and passbook.

How to Open a Union Bank Zero Balance Account Online & Offline

Offline Application:

Step 1: Visit the nearest Union branch. You can find your nearest Union branch with the help of their Branch Locator.

Step 2: To initiate the application process, you request a zero balance account opening application from Union branches.

Step 3:  Fill in the required details and attach the necessary documents, like address proof and income proof (if income proof is required).

Step 4: After completing your form, submit it to the bank representative.

Step 5: Wait for 24 hours to 48 hours.

Step 6:  When Union Bank verifies your documents, the bank will open your zero-balance account.

Online Application:

Step 1: Visit the official website of Union Bank and move your cursor to the “Accounts and Deposits” section.

Step 2: Select the “Saving Account” option.

Step 3: You will see all Union Bank Zero Balance accounts. Select one of your needs, then click here for the direct link.

Step 4: Fill in the required personal and financial details.

Step 5: Upload necessary documents (PAN card, Aadhaar, income proof, address proof).

Step 6: Apply and await approval (online applications take 2-3 working days).

Union Bank Zero Balance Account Fees & Charges

Here’s a detailed table outlining the fees associated with the Union Bank Zero Balance Account (Basic Savings Bank Deposit Account - BSBDA) as per Union Bank of India's information. 

Union Bank Zero Balance Account Interest Rates

Union Bank provides its customers with a zero-balance account. This table outlines the interest rate according to RBI Guidelines and bank policies.

Key Points to Note:

• Interest Calculation:
  • Interest is calculated on the daily closing balance and credited to the account quarterly (in March, June, September, and December).
    
    
• Tax Deduction at Source (TDS):
  • Interest earned on the savings account is subject to TDS as per Income Tax rules if the total interest exceeds ₹10,000 in a financial year.
  • Submit Form 15G/15H (if eligible) to avoid TDS.
    
    
• Competitive Rates:
  • If we talk about the interest rates, the Union Bank gives our customers good interest rates, which are competitive interest rates at zero-balance accounts.
    
    
• Applicability:
  • The interest rates apply to all savings accounts, including the Basic Savings Bank Deposit Account (BSBDA) and Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts.
    
    

Eligibility Criteria for Union Bank Zero Balance Account Opening

Union Bank of India requires this specific table to explain the full eligibility requirements for setting up a Zero Balance Account (Basic Savings Bank Deposit Account - BSBDA).

Key Points to Note:

• KYC Compliance:
  
  • All applicants must submit valid KYC documents for identity and address proof.
  • An Aadhaar card is the most commonly used document for KYC.
    
    
• PMJDY Accounts:
  • Under the Pradhan Mantri Jan Dhan Yojana (PMJDY), individuals without a bank account (especially from low-income households) are eligible.
  • Only one account per family is eligible for the overdraft facility (preference is given to the female member of the family).
    
    
• Minors:
  • Minors can open a zero-balance account with a guardian. The guardian will operate the account until the minor turns 18.
    
    
• Non-Resident Indians (NRIs):
  • NRIs are not eligible for zero-balance accounts. They must open NRE/NRO accounts.
    
    

Required Documents for Union Bank Zero Balance Account Opening

This table provides you with details of the required documents for the Union Bank Zero Balance Account:

Union Bank Zero Balance Account Helpline

Here’s a concise table with Union Bank Zero Balance Account Helpline details for quick reference:

Union Bank Zero Balance Account Welcome Kit

Here’s a concise table outlining the Union Bank Zero Balance Account Welcome Kit details:

Conclusion

Customers who need a Zero Balance Account service without any charges or deposits can choose the Union Bank Zero Balance Account. This account suits students, low-income households, and senior citizens because it does not require maintaining a balance. Union Bank Zero Balance Account provides a free Rupay debit card, mobile and internet banking services, a passbook, and a free account.

Through this account, people can earn savings interest and benefit from the PMJDY scheme's features, which include accidental insurance protection and the ability to obtain overdraft funds. The Union Bank zero balance account is a dependable choice for financial management because it provides secure and effective options for basic savings and financial inclusion.

FAQs Related to Union Bank Zero Balance Account

1. Does Union Bank offer a Zero-Balance Account?

Yes, you can open a zero-balance account with the Union Bank of India without worrying about maintaining a minimum balance throughout the year.

2. What is the minimum balance requirement for a Union Bank account?

As the name suggests, opening a zero-balance account does not require maintaining a minimum balance.

3. Union Bank Zero Balance Account Maximum Limit?

You can make ATM cash withdrawals, which are limited to Rs. 25,000 per day, and the limit for POS withdrawals for a day is Rs. 50,000.

Apply for Loans Fast and Hassle-Free

Apply Now

About the Author

LoansJagat Team

We are a team of writers, editors, and proofreaders with 15+ years of experience in the finance field. We are your personal finance gurus! But, we will explain everything in simplified language. Our aim is to make personal and business finance easier for you. While we help you upgrade your financial knowledge, why don't you read some of our blogs?