Tarun is an IT professional and he changed 5 companies in his 10 years of career. On changing the company, he opened a new account in a new bank for salary. New accounts kept opening, but he forgot to close the old accounts. One day Tarun came to know that fraud happened in one of his accounts. This can happen not only with Tarun, but with anyone. If you have more than one bank account in your name. Many types of charges can be levied on you unnecessarily. At the same time, your CIBIL score can also deteriorate. Let us know what is the disadvantage of having more than one bank account.
The hassle of minimum balance
Having an account in more than one bank can cause you a big loss. To maintain each of your accounts, you have to keep a fixed amount (Minimum Balance) in it. This means that if you have more than one account, a large amount of your money will get stuck in the banks. You get a maximum of 4 to 5 percent annual return on that amount (Savings Bank account Interest rate). On the other hand, if you invest the money in other schemes instead of keeping it in the savings account, then you will get more interest as annual return.
These extra charges are levied
By having multiple accounts, you have to pay annual maintenance fees (Bank account maintenance free) and service charges (Bank service charge). Apart from credit card and debit card, the bank also charges you for other banking facilities. So here also you have to bear a lot of money loss.
Credit score gets worse
Having more than one inactive account also has a bad effect on your credit score. Not maintaining minimum balance in your account spoils your credit score. Therefore, never take inactive accounts lightly and close that account as soon as you leave the job.
The Income Tax Department keeps an eye on it
Having accounts in more banks leads to a lot of problems while paying taxes. There is also a lot of hassle in paperwork. Also, while filing income tax (ITR return file), information related to all bank accounts has to be kept. Often, collecting the record of their statements becomes a very complicated task. If the details of all the banks are not given, then the income tax department can notice them.
The account gets converted from salary to savings
If salary is not received in any salary account for three months, it gets converted into a savings account. After conversion into a savings account, the bank’s rules regarding the account change. Then the bank treats it as a savings account. According to the bank’s rules, it is necessary to maintain a minimum balance in the savings account. If you do not maintain it, then you may have to pay a penalty and the bank can deduct money from the amount deposited in your account.
