If you have many savings accounts and you use only one or two accounts then it is a good decision to close the remaining accounts.
Many people keep many savings accounts. Some people do this thoughtfully because they believe that it is beneficial and convenient to keep the money in separate accounts. But there are also some different reasons for increasing the number of savings accounts of many people, such as changing jobs again and again, moving from one city to another for employment, business needs etc.
If you have many savings accounts and you use only one or two accounts then it is a good decision to close the remaining accounts. Today we will tell you about some of the disadvantages of having more savings accounts. But first let’s talk on the benefits.
Benefits of having more savings accounts
If you have many savings accounts, you can do more transactions from ATMs. Many can keep checkbooks and credit cards.
A major reason for having more savings accounts is that in case of insolvency of a bank, there is a guarantee of getting back a deposit of up to Rs 5 lakh from the deposit in it. This is the reason that people keep more savings accounts and keep less amount in them.
Benefits of having more savings accounts
The condition of keeping the minimum balance: This rule is applicable to the savings accounts of all banks that you have to keep a minimum monthly average balance in every account. If you have many savings accounts and you are using only one or two, then you will have to keep a certain amount in the rest of the accounts.
Penalty will have to be paid: If the customers are unable to keep the minimum balance in the savings account, then according to the rules, they have to pay a fine.
Doorment account: Transactions should continue to be done even if the minimum balance is kept in the bank account. If the account has not been transacted for a long time, then the account gets dormant. Once the dormant account is activated again, a complete process has to be followed.
Maintenance fees and service charges: An annual maintenance fee and service charge is charged for bank accounts. This rule is applicable in all banks. Remember, maintenance fees and service charges are levied on all accounts, whether they are being used or not.
All your accounts have to be given while filing income tax return. Collecting information related to all accounts such as bank statement is also a big task. If the details of an account are missed by mistake, then the problem may increase further. May be the income tax department considers it to be tax evasion, then you may have to face penalty or tax notice as well.
Kelvin Hass: Technology Editor:
Kevin Hass is from Austria, Our team called him true tech editor, he loves to review gadgets and with his ideas, he reveals new experiments in the technology and expresses in his articles our tech lover users love to read his articles and in a month he reviews more than 20 gadgets also.