Multiple Bank Accounts: Most of the people change jobs then their bank account changes. In such a situation, they have accounts in many banks. Let us know what are the disadvantages of multiple bank accounts.
If you also have an account in many banks, then you need to be careful. Multiple bank accounts can cause you many losses. The worst part is that you do not even know about the financial loss in this. Tax and investment experts also say that having a single bank account makes it easier to file returns.
If you have an account in many banks, then the first disadvantage is about the maintenance. Each bank has different maintenance charges, debit card charges, SMS charges, service charges, minimum balance charges. As many banks have accounts, every bank will have to pay all such charges. There is no benefit to this, but there is definitely an economic loss. If the minimum balance is not maintained, then banks charge hefty charges instead. In such a situation, it is advisable to close the non-essential bank account.
Tax experts say that filing returns is easier if you have a single bank account. Complete information about your earnings is in a single account. Having different bank accounts makes this calculation complicated. Due to this the calculation of total income can be wrong. In such a situation, the tax department can issue a notice to you. To solve such problems, Finance Minister Nirmala Sitaran had announced a new system in this budget. Under the new rule, information about income from sources other than salary income, such as dividend income, capital gains income, bank deposit interest income, post office interest income will be pre-filled. Till now taxpayers had to calculate it separately. He used to have trouble because of forgetting this many times. Now all this information will come pre-filled. This information will be obtained with the help of PAN card.
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If no transaction is done in a savings account or current account for a year, then it turns into an Inactive Bank Account. If there is no transaction for two years, it gets converted into Dormant Account or Inoperative. With such a bank account, the possibility of fraud increases. Bankers say that with these active accounts, the chances of internal and external fraud are highest. In such a situation, its details are kept in a separate ledger.
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The minimum balance charge of private banks is very high. For example, the minimum balance of HDFC Bank is 10 thousand rupees. For rural areas it is Rs 5000. For not maintaining this balance, the penalty for one quarter is Rs 750. Similar charges are also applicable for other private banks. If you do not maintain the minimum balance by mistake, then you may have to pay hundreds of rupees every month unnecessarily. This also affects your CIBIL score. In today’s era CIBIL Score is very important for everyone. On the basis of this score, you get a cheap loan from the bank. The disadvantage of having a low CIBIL score will be to bear in the form of high interest in the long run.
If you have multiple bank accounts, then thousands of rupees will be spent every month just to maintain the minimum balance. This affects your investment. The money on which you should get at least 7-8 percent return, that money will be kept as your minimum balance. It is not that interest is not available on the minimum balance, but it will be up to a maximum of 3-4 percent. By investing this money in the right place, returns of up to 7-8 percent can be easily found.
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