Basic Savings Bank Deposit Accounts (BSBDA) are simple bank accounts for students that help in easy money management. These are perfect for students starting their financial journey. These accounts don’t need a minimum balance. They have free withdrawal limits and lower charges and come with debit cards for easy access. Banks like SBI, HDFC, ICICI, Axis, Union Bank, and many others offer hassle-free BSBDA online account opening processes. Let’s explore unique features, benefits, account limits, minimum balance, and other details in this blog.
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What is a Basic Savings Bank Deposit Account?
A Basic Savings Bank Deposit Account (BSBDA) is a simplified banking option designed to provide essential banking services without the burden of maintaining a minimum balance.
It allows individuals to deposit and withdraw cash at bank branches and ATMs, receive money through electronic channels, and makeup to four monthly withdrawals, including ATM transactions.
These accounts are particularly suitable for students, as they offer easy access to funds and help in managing finances without additional costs.
| BSBSA Account Details | |
| Type of Account | Zero-balance Savings Account |
| BSBD Account Minimum Balance | No minimum balance required |
| Types of Free Services | ATM debit card, cash withdrawal and deposit, credit through electronic payment channels, and cheque collection. |
| BSBDA Account Limit | – Balance: The maximum balance allowed in a BSBDA account is INR 50,000. – Credits: Total yearly credits to a BSBDA account cannot exceed INR 100,000. – Withdrawals: Monthly withdrawals and transfers from a BSBDA account are limited to INR 10,000. – Withdrawal per month: A BSBDA account allows a maximum of four withdrawals per month. |
Also Read: This blog is a comprehensive guide on the best student bank account to study abroad. Find all the information here!
Basic Savings Account Interest Rates
In India, numerous public and private sector banks offer a variety of savings accounts tailored to meet diverse customer needs. Interest rates for these accounts generally range from 2.60% p.a. to 8.00% p.a., depending on the balance maintained in the account.
Before selecting a savings account, it’s crucial to understand the interest rates and specific features offered by each bank. Below is an overview of the interest rates provided by different banks along with their savings account options.
| Bank Name | Rate of Interest |
| Jana Small Finance Bank Limited | 3.50% p.a. |
| RBL Bank Limited | 4.25% p.a. |
| YES Bank | 3.00% p.a. |
| North East Small Finance Bank Limited | 4.00% p.a. |
| Utkarsh Small Finance Bank Limited | 4.00% p.a. |
| Suryoday Small Finance Bank Limited | 3.00% p.a. |
| Fincare Small Finance Bank Limited | 3.51% p.a. |
| IndusInd Bank | 3.50% p.a. |
| ESAF Small Finance Bank Limited | 3.50% p.a. |
| IDFC First Bank Limited | 3.00% p.a. |
The interest rates mentioned are subject to change based on the bank’s guidelines and revisions in the policy.
RBI Guidelines on Basic Savings Bank Deposit Account?
The Basic Savings Bank Deposit Account (BSBDA) is a financial product introduced by the Reserve Bank of India (RBI) aimed at promoting financial inclusion. Here are the key guidelines and features regarding BSBDA-
- Any individual can open a BSBDA without restrictions on age, income, or financial background.
- A person can only have one BSBDA in a bank.
- BSBDA holders cannot open another savings account in the same bank.
- BSBDAs do not require a minimum balance, ensuring accessibility.
- Free services in BSBD accounts include deposit and withdrawal of cash, credit through electronic payment channels, and cheque collection.
- Banks must offer at least four free withdrawals per month, including ATM and branch transactions. Beyond this, banks may charge fees based on a reasonable, non-discriminatory, and transparent pricing policy.
- Banks will not count balance enquiries at ATMs as part of the four free withdrawals allowed for BSBDA customers.
- ATM-cum-Debit cards should be issued free of charge, with no annual fees.
- Passbooks must be provided free of charge to all BSBDAs.
- BSBDAs follow RBI’s KYC/AML guidelines.
- Accounts opened with simplified KYC are treated as “BSBDA-Small Accounts,” and are subject to certain restrictions:
– Total credits: Not exceeding INR 1 lakh per year.
– Maximum balance: INR 50,000 at any time.
– Total withdrawals: Not exceeding INR 10,000 per month. - Chequebook facilities are not mandatory for BSBDAs. Banks may offer this or other additional facilities at their discretion. If additional facilities are provided with charges or minimum balance requirements, the account ceases to qualify as a BSBDA.
- Banks offer ATM debit cards when opening a BSBDA, but customers can decline them. Banks cannot force customers to accept these cards.
- If a customer opens a BSBDA, they must close their existing savings account within 30 days. Banks can close such accounts after this period with prior written consent.
- Banks pay interest on BSBDA balances as per the deregulated savings account interest rates.
- Customers can request to convert a regular savings account into a BSBDA. They must provide written consent and will be informed of the BSBDA’s features and limitations.
Best Banks Offering Basic Savings Bank Account for Students
Many banks provide Basic Savings Bank Deposit Accounts for students. They offer low-cost features and accessibility. Students can benefit from these accounts by managing their finances effectively without the burden of maintaining a minimum balance or incurring high fees. Here are the best savings accounts for students-
State Bank of India
SBI’s Basic Savings Bank Deposit Account (BSBDA) is designed for individuals from all walks of life, especially to promote financial inclusion among the economically weaker sections. This account provides essential banking services without imposing any charges or fees, making it an ideal choice for starting a savings habit.
- It is open to anyone with valid KYC documents.
- SBI BSBD account is offered at all SBI branches across India.
- You can enjoy the freedom of maintaining an SBI zero-balance account with no minimum balance requirement.
- There is no upper limit on the account balance.
- A basic RuPay ATM-cum-debit card is issued for easy transactions.
- The chequebook facility is not available for this account.
- Maximum 4 cash withdrawals free of cost in a month are offered.
YES Bank
YES Bank’s Basic Savings Bank Deposit Account (BSBDA) is designed to provide essential banking services with no hidden charges or minimum balance requirements, making it an inclusive option for individuals looking to manage their finances efficiently. This account aligns with the goal of financial inclusion and offers various convenient features.
- All account holders receive a free passbook for easy transaction tracking.
- A complimentary debit/ATM card is issued with the account for seamless access to funds.
- Four free cash withdrawals are allowed each month at bank branches.
- Deposits can be made over the counter, through automated transfers from other accounts, or by having a portion of your salary transferred monthly into the savings account.
Also Read: Check some of the FAQs about international bank accounts for students studying abroad. Know all about it in this blog.
HDFC Bank
HDFC Bank offers a Basic Savings Bank Deposit Account (BSBDA), a zero-balance savings account designed to provide essential banking services without any maintenance charges. This account gives you easy access to banking services across multiple branches and ATMs, ensuring convenience no matter where you are.
With HDFC Bank’s BSBDA, you can stay connected and manage your finances digitally through NetBanking and Mobile Banking services.
- No minimum balance is required.
- All account holders get a passbook at no extra charge to track their transactions.
- You will receive a free Rupay Card for easy access to your account at any ATM or point of sale.
- You can enjoy up to 4 free withdrawals per month, including cash withdrawals (at branches and ATMs), NEFT/RTGS (both branch and online), IMPS, clearing, funds transfers, internet debits, standing instructions, EMI, and POS transactions.
- You get 25 free cheque leaves every year.
- You get access to HDFC Bank’s BillPay service at no cost.
- You can receive free electronic statements to track your account activity.
While basic services are free, any additional services beyond the prescribed limits (such as more than 4 withdrawals per month) may incur charges. These charges will depend on the nature and mode of the transaction.
Union Bank of India
The Union Bank of India offers a specialized Basic Savings Bank Deposit Account for Students (SBZER), designed to cater to the financial needs of students. Students aged between 10 and 25 years who are enrolled in regular courses can open this account. This account provides several exclusive benefits-
- There is no minimum balance requirement.
- Each account comes with a personal accidental insurance cover of INR 2 lakhs.
- The account allows cash withdrawals of up to INR 25,000 per day at ATMs.
- A daily Point of Sale (POS) transaction limit of INR 50,000 enables students to make purchases conveniently.
- Students can transfer money through NEFT without incurring any charges, facilitating easy fund transfers.
- You can obtain a chequebook once they reach the age of majority.
- Union Bank Online Account Opening for students (SBZER) is a hassle-free process that is online and secure.
Bank of Baroda
The Bank of Baroda offers a Basic Savings Bank Deposit Account for Students, designed to meet the financial needs of young individuals pursuing their education. This account provides a range of benefits tailored specifically for students, ensuring convenience and accessibility.
- You can maintain your accounts without the pressure of keeping a minimum balance.
- You receive a free Rupay Platinum debit card, which includes no issuance or renewal charges.
- The account facilitates free NEFT, RTGS, IMPS, and UPI transactions.
- You can obtain a chequebook at no cost.
- The account allows one free demand draft or banker’s cheque per annum.
- You get free SMS alerts.
- You benefit from up to 100% concession in Demat Account Maintenance Charges (AMC), making it easier to manage investments.
BSBD Account Opening Online
Opening a student account online is a simple process. To open a Basic Savings Bank Deposit Account (BSBDA) online, you can follow the general steps outlined below, which are applicable across various banks offering this account type. Note that specific procedures may vary by bank.
- Go to the official website of the bank where you wish to open the BSBDA.
- Navigate to the section dedicated to savings accounts or specifically search for “Basic Savings Bank Deposit Account.”
- Complete the online application form with the required details such as personal information, contact details, and identification documents.
- Prepare and upload necessary documents for KYC (Know Your Customer) verification, which typically include an Aadhaar card, passport, voter ID, utility bill, rental agreement, and passport-size photographs.
- Review all entered information and submitted documents before finalizing your application.
- After submission, you should receive a confirmation email or SMS from the bank regarding your application status.
- Once your application is processed and approved, you will receive your account details along with an ATM debit card (if applicable) and other relevant information.
This was all about the Basic Savings Bank Deposit Account for students. The BSBDA not only promotes financial inclusion but also caters to the unique needs of young individuals, ensuring they can focus on their studies while enjoying the convenience of modern banking. By choosing a BSBDA, students can take their first steps toward financial independence with confidence and ease.
To learn more about the best bank accounts for students, education loans, forex, banking experience for global students, or international money transfers, reach out to our experts at 1800572126 to help ease your experience with studying abroad.
FAQs
A BSBDA is a type of savings account that offers essential banking services without a minimum balance requirement, aimed at promoting financial inclusion.
No, an individual is allowed to open only one BSBDA per bank.
No, banks cannot impose age or income restrictions for opening a BSBDA; it is available to all customers.
Customers can make a minimum of four free withdrawals per month, with additional withdrawals subject to bank-specific charges.
No, there is no requirement for an initial deposit when opening a Basic Savings Bank Deposit Account.
Yes, you can hold other types of deposit accounts, such as term deposits or recurring deposits, in the same bank.
You need to provide standard KYC documents like proof of identity and address; simplified KYC norms may also apply.
Yes, banks typically provide a free ATM debit card with the Basic Savings Bank Deposit Account.
No, most banks offer free NEFT, RTGS, IMPS, and UPI transactions with a BSBDA.
Yes, you can request to convert your regular savings account into a BSBDA by providing written consent and understanding the features of the new account.
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