More than one savings account can increase your problems, these losses can happen
If you have multiple savings accounts and you use only one account, then it is a good decision to close the rest of the accounts.
Many people have multiple savings accounts. Some people do this thoughtfully because they believe that keeping money in different accounts is beneficial and convenient. But there are also some different reasons for the increase in the number of savings accounts of many people, such as changing jobs frequently, settling from one city to another for employment, business needs etc.
If you have multiple savings accounts and you only use one, then it is a good decision to close the rest of the accounts. Today we will tell you about some disadvantages of having more savings accounts. But first let’s talk about the benefits.
Benefits of having more savings accounts
If you have multiple savings accounts, you can do more transactions than ATMs. Can hold multiple checkbooks and credit cards.
One of the major reasons for having more savings accounts is that in case of bankruptcy of a bank, there is a guarantee of getting back the deposit up to Rs 5 lakh from the deposit in it. This is the reason why people keep more savings accounts and keep less amount in them.
Disadvantages of having more savings accounts
Condition of maintaining minimum balance: This rule is applicable to the savings accounts of all banks that you have to maintain a minimum monthly average balance in each account. Even if you have multiple savings accounts and you are using only one or two, you will have to keep a certain amount in the rest of the accounts.
Penalty will have to be paid: If the customer is not able to maintain even the minimum balance in the savings account, then according to the rules, he has to pay a penalty.
Dormant account: Even if the minimum balance is maintained in the bank account, the transaction should continue with it. If there is no transaction from the account for a long time, then the account becomes dormant. If the doorment account becomes active again, then a complete process has to be followed.
Maintenance fee and service charge: An annual maintenance fee and service charge is levied for bank accounts. This rule is applicable in all banks. Remember maintenance fees and service charges are applicable on all accounts whether they are in use or not. Along with this, if you have debit or ATM card for every account, then its fee will also have to be paid.
While filing income tax return, you have to give details of all your accounts. Collecting information related to all accounts such as bank statements is also a big head-scratching task. If by mistake the details of any account are missed, then the problem can increase. It may be that the Income Tax Department considers this to be tax evasion, then you may also have to face penalty or tax notice.
