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

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Created on
December 9, 2022


What’s Inside

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. 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 can be 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.

Here are some key features of the Jan Dhan Account:

  • You don't need 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
  • Only 4 withdrawals allowed

Difference 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. 

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

Both of these accounts have a different set of 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. 


A zero balance account and a Jan Dhan account are two different types of bank accounts with distinct eligibility criteria and features. While a zero balance account allows you to maintain no minimum balance and enjoy various banking facilities, a Jan Dhan account, offered under the Pradhan Mantri Jan Dhan Yojana, is targeted towards promoting financial inclusion and offers additional benefits such as interest earnings and unlimited deposits. The choice between the two depends on your eligibility and personal preferences, but if you meet the criteria for a Jan Dhan account, it is recommended to take advantage of the government initiative and open one promptly.

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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.


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.
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