You’ve probably heard of a zero-balance account. It’s a checking account that doesn’t require you to keep any monthly minimum balance. Suppose you have been on the fence about getting one. You need to know: Can You Open a Zero Balance Checking Account?
What Is a Zero Balance Account?
A zero-balance account is a checking account that does not need you to maintain a minimum balance. These accounts allow customers to make deposits and withdrawals without incurring fees as long as they have enough money in their performance at the time of the transaction.
The standard definition for a checking account is a deposit account that allows you to write checks and use ATMs (or debit cards). A savings account is similar in that it’s also an interest-bearing financial instrument; however, there are critical differences between these financial accounts.
Eligibility to Open a Zero Balance Checking Account
It would help if you were 18 years old to open an online checking account. You’ll also need to provide valid photo identification, such as a driver’s license or passport. In some cases, your employer may have specific requirements regarding the type of ID you can use and where you obtained it (for example: if you’re opening an account with your company).
After that, the only other requirement is that your Social Security number is on file with the bank or credit union (assuming they ask for it).
Benefits of a Zero Balance Account
There are many benefits to having a zero-balance account:
- You won’t face a monthly maintenance fee.
- There’s no minimum balance requirement that needs to be met for you to avoid the monthly fee.
- These accounts are easy to open, and there aren’t many requirements other than being employed or financially independent.
Zero-balance checking accounts have low to no fees compared with other checking accounts. They can also be used by students and young adults who don’t have much money but still need access to their funds while going through school or training programs.
“SoFi account holders don’t have to pay any minimum balance fees, overdraft fees, monthly service fees, and ATM fees.”
Disadvantages of a Zero Balance Account
You might need help getting a debit card with your new account. Some banks require you to open an additional account before giving you a debit card; others will only issue one if you have a precise amount of money in your checking account.
Some banks also limit the number of withdrawals allowed per month. For example, some accounts allow for as many as five or six withdrawals per month, but others restrict customers to just one or two. This means that if there are any automatic payments or other regular redeposits in place (think rent or salary), it’s essential to consider whether this restriction will work for you—or whether another option might be better suited for your needs.
Several options are available if you’re looking for a bank that offers zero-balance checking accounts. It would help if you considered your options before making any final decisions.