Synopsis– Neobanks in India offer zero-balance digital savings accounts and no fees to make banking easier, smarter and stress-free. They’re especially great for students, freelancers and digital natives, and each neo banking service offers banking functionality with modern tools for saving, budgeting and financial inclusion.
Are you tired of unnecessary penalties for low balances? Neobanks in India are making banking easier with zero-balance savings accounts that are completely digital with no fees, making them ideal for students, freelancers, and anyone who prefers a digital-first approach to banking. Here is how to select a Neobank that fits your requirements.
What Are Neobanks?
- Digital-Only Banking Platforms: Neobanks are entirely digital banks that exist only online; that is, they only offer an app or a website, with no physical ATMs or branches.
- Backed by RBI-Regulated Banks: All neobanks in India are tied to RBI-regulated banks such as Federal Bank, Equitas Small Finance Bank, and SBM Bank, which provide legitimate banking services and compliance for neobanks to consumers.
- Why They’re Gaining Popularity: Their low-cost structure allows for far more competitive interest rates or zero-cost products. The user experience includes instant, paperless onboarding, with a video KYC process, to onboard account holders.
- Their smart features for savings, budgeting, UPI payments, and expense tracking are attractive for India’s digital-centric generation that values convenience.
Why Zero-Balance Accounts Matter
- No Minimum Balance, No Penalties: Zero-balance savings accounts remove the minimum balance requirement—there are no penalties, and, with zero pressure, there is less stress around banking.
- Financial Inclusion for All: These accounts are a lifeline for-
- Students
- Freelancers and gig workers
- Those with low or irregular income
- First-time savers
- These accounts break down participation barriers, so they support financial inclusion for everyone.
- Full Access to the Modern Banking: These accounts are zero-balance, but they still offer-
- UPI payments
- Virtual or physical debit card
- Online bill payments
- No hidden maintenance fees
- Affordable: Neobanks can pass on savings received by having low-cost buildings. Technology provides these features while saving you time and reducing costs.
Top Neobanks Offering Zero-Balance Accounts
1. Jupiter Money (Federal Bank)
- Jupiter is a modern banking experience that is app-first and has no minimum balance. This includes:
- Smart saving features that are called “Pots”
- Smart saving features that have 1% rewards points on UPI and debit card spends
- AI-generated expense insights
- Cashback and rewards, and a great user interface.
- Great for millennials looking for budgeting and assistance.
2. Fi Money (Federal Bank)
- Fi Money works for salaried professionals and digital users. Fi Money has features such as:
- No maintenance charge
- Smart saving rules and categorised expense tracking
- Investment functionalities
- It gives better sight and control over money.
3. NiyoX (Equitas SFB)
- NiyoX has design features along with the stability of a small finance bank:
- Up to 7% interest with no minimum balance account
- Goal-based saving features.
- Best for travel or digital nomads.
Also read: Top 10 Neo Banks in India in 2025 – Compare Features, Benefits & More
4. Freo Save (Equitas SFB)
- Freo Save focuses on short-term flexibility:
- Up to 7% interest rates, with no minimum balance.
- Virtual debit card
- Instant sign-up via digital KYC / onboarding.
5. Finin (SBM Bank)
- Finin was a complete digital banking system with a simple user interface and no paperwork.
- Great for first-time users, just a caution to send users if space or dreams is acquired by Open, they are pausing onboarding.
Things to Consider Before Choosing
1. Compare Key Features: Compare the interest rates, mortgage debit card perks (cashback, overseas use), app ratings and the level of customer support.
2. Check Onboarding Status: Some platforms will suspend registrations, so check whether onboarding is open.
3. Ensure RBI-Regulated Partnerships: You should only choose a neobank that has an RBI-licensed partner bank to stay compliant and protect your funds.
Conclusion
Neobanks are transforming banking in India with affordable, easy, and inclusive zero-balance savings accounts, and as technologies like AI and embedded finance develop further, we expect even more real-time personalised experiences. Identify a neobank that fits your needs, lifestyle, and financial goals—and manage your money from your smartphone.
Written by N G Sai Rohith
