Things to look out for before you open a Basic Savings Bank Account

Things to look out for before you open a Basic Savings Bank Account

Banking has become simpler over the ages. With the latest basic savings bank deposit account (bsbda), it can't get simpler than this. Literally. Any resident Indian national can open this small account with minimal documentation. If you are interested to know about this banking innovation, look no further. You must know about a few important points like balance, number of transactions, interest rates, and KYC documents etc. about a BSBDA account. Read on.


As per current norms, any resident Indian national can have a bsbda small account. There are certain Eligibility limitations which such an account has. You must understand these norms so that you can operate the bsbda account. Firstly, the total balance in your bsbda account should not exceed Rs 50,000 at any point in time. If the balance in your account exceeds this sum, no further credit transactions will be permitted till it is brought below that limit. Secondly, the total credits in your account should not exceed Rs 1 lakh in a financial year. Thirdly, the total withdrawals and transfers in your bsbda small account should not be more than Rs 10,000 in a month. Do remember foreign inward remittances are not allowed in a basic savings bank deposit account.

Interest rates and minimum balance

Like any other savings account, a bsbda small account deposits earn interest. You can earn 4% per annum at the end of day balances. Do note that the interest earned on your BSBDA small account balance will be credited to your account on a quarterly basis. The best thing about a bsbda account is complete freedom from minimum balance requirement. A BSBDA Small Account is a zero balance account. Also, there is nil initial pay in required to start the account. With a bsbda account, you will get a free debit card.

KYC documents required

You are eligible to open bsbda account online if you have complete identity or address documents. Thanks to government's norms, the BSBDA small account can be opened with just a photograph. As a small account holder, you need to submit the required documents post account opening. So, you will be required to submit evidence of having applied for valid identity or address proof within 12 months of account opening. You can give actual identity or address proof within 2 months post account opening.

Do note that the list of documents acceptable as both proof of identity and address includes passport, permanent account number (PAN) card (identity proof), voter’s identity card, permanent driving license which is valid with a photograph, job card issued by NREGA duly signed by appropriate authority, letter or card issued by UIDAI etc.


A basic savings bank deposit account does not have charges applicable on non-maintenance of balance. Also, the cheque book is free. There may be a charge levied on the issue of duplicate/ad-hoc statements. There is generally no charge on demand drafts if it is as per specified limit. There is also charge for cheque collection - local clearing zone. Balance enquiry at a bank branch is free.