look news india
Tarun is an IT professional and he changed 5 companies in his 10 year 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 account. One day Tarun came to know that there was a fraud 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. Then many types of charges can be levied on you unnecessarily. Along with this, your CIBIL score can also be affected. Let us know what are the disadvantages of having more than one bank account.
Minimum balance hassle
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 (Savings Bank account interest rate) on that amount. On the other hand, if you invest the money in another scheme instead of keeping it in a savings account, then you will get more interest as annual return.
These are additional charges levied
Keeping multiple accounts costs you annual maintenance charges (bank account maintenance is free) and service charges (bank service charges). Apart from credit card and debit card, the bank also charges you for other banking facilities. So here too you have to lose a lot of money.
Credit score gets affected
Having more than one inactive account also has a negative impact on your credit score. Not maintaining a minimum balance in your account hurts your credit score. So never take inactive accounts lightly and close the account as soon as you leave the job.
Income Tax department is keeping an eye on this
Having accounts in many banks creates a lot of problems while paying taxes. There is a lot of hassle in paperwork as well. Also, while paying income tax (filing ITR returns), 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 issue a notice to them.
Account converted from salary to savings
If salary is not received in a salary account for three months, it is converted into a savings account. After converting into a savings account, the bank's rules regarding the account change. Then the bank treats it like 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, you may have to pay a penalty and the bank can deduct money from the amount deposited in your account.