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Zero Balance Account Vs Jan Dhan Account: Which is Better?

Zero Balance Account Vs Jan Dhan Account: Which is Better?

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Fi Money is not a bank; it offers banking services through licensed partners and investment services through epiFi Wealth Pvt. Ltd. and its partners. This post is for information only and is not professional financial advice.

If you’ve been planning to open a zero balance account to up your savings game, you may have heard of the Jan Dhan account offered under the Pradhan Mantri Jan Dhan Yojana. Today, let’s get a little deeper into the zero balance account vs Jan Dhan account comparison and see how these two kinds of bank accounts are different from one another. 

What is a Zero Balance Account?

A zero balance account is a savings account in which you are not required to maintain any minimum amount at any time. In other words, you can have a nil balance in your account and will not be charged any penalty or non-maintenance fees. 

Apart from this key difference, a zero balance account works much like a standard savings account. You get to earn interest on the balance in your account, and you can enjoy various facilities associated with the account, like mobile banking, net banking, a debit card, and other such benefits. 

What is a Jan Dhan Account?

The Jan Dhan account is an account that is opened under the Pradhan Mantri Jan Dhan Yojana (PMJDY). This scheme was introduced by the government of India in 2014, aiming to promote banking and offer access to financial services to people from low-income groups. Under this scheme, eligible individuals can open a Basic Saving Bank Deposit Account (BSBDA) or a Jan Dhan account in their name. 

Here are some key features of the Jan Dhan account:

  • You need not maintain any minimum balance in your account
  • You earn interest on the account balance
  • Deposit and withdrawal of cash at bank branches and ATMs
  • Unlimited deposits permitted
  • Only 4 withdrawals allowed

Key Differences Between Zero Balance Account & Jan Dhan Account


The eligibility criteria for these two kinds of accounts are quite different. To be eligible for a Jan Dhan account, you must meet the following criteria: 

  • Be an Indian citizen
  • Be over 10 years of age
  • Not have an existing bank account

However, if you have an existing bank account, you can also transfer it to the Jan Dhan scheme to enjoy the benefits offered by this initiative.

That said, the eligibility criteria for a regular zero balance savings account are quite different. The age criteria and other details may vary from one bank to another. 

Insurance Coverage

A regular zero balance account typically does not offer any insurance coverage benefits. However, under the Pradhan Mantri Jan Dhan Yojana, you get a RuPay debit card when you open a Jan Dhan account. This card offers accidental insurance coverage of Rs. 1 lakh for all cardholders. With effect from 28 August 2018, this cover has been enhanced to Rs. 2 lakhs for all new accounts opened. 

Zero balance account vs Jan Dhan account: Which is better?

Each of these two types of accounts has its own benefits. If you do not qualify for the Jan Dhan account, you can consider opening a regular zero balance savings account. But if you qualify, take advantage of this initiative offered by the Indian government and open your Jan Dhan account promptly. 


This sums up the zero balance account vs Jan Dhan account debate. Now that you know the details of these two kinds of bank accounts, you can decide which one is best for you. Remember that to open a Jan Dhan account, you must first be eligible for the scheme. 

Frequently Asked Questions

1. Are the zero balance account and Jan Dhan account the same?

No, they are not the same thing. A Jan Dhan account is a type of zero balance account. However, all zero balance accounts are not Jan Dhan accounts.

Also, the Jan Dhan account offers various other benefits like an accident insurance cover with a sum assured of Rs. 2 lakhs and an overdraft facility of up to Rs. 10,000. A regular zero balance savings account may not offer these features.

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