People having more than one bank account, sometime it happens due to change of jobs, change of residence. They open new salary account account and don’t close their existing account normally.
These are simple tips that you can avoid unnecessary bank account as does not required many account same time in this modern time. One account can take care of your banking requirement. Because transaction is possible from any branch otherwise ATM works will work with all banks.
It is always advisable if you are not using old account for any reason it has become inactive, then close them. Otherwise, there may be a big headache for you in the coming time.
Threat of fraud: For security reason also many account is not right as security password normally peoples follow same patterns as for other accounts and operates the account through net banking. Not using inactive account increases the chance of fraud, as you do not change its password for a long time. To avoid this, close the account and delete its net banking.
Difficulty in filing income tax: If you more accounts you need to show in ITR or automatically listed on your PAN. So having many account you need to clarify and show the transaction in ITR in case you get any interest in those accounts. Even more paperwork has to be done in paperwork. Also, while filing income tax, information related to all bank accounts has to be kept. Often, it becomes very complicated to collect the record of his statement.
Do not get interest: Having an account with more than one bank can cause you big loss. To maintain your account, you have to keep a fixed amount of the amount in it. That is, having more than one account, your big amount will be stuck in banks. On that amount you get an annual return of only 3 to 5 percent. At the same time, if you invest in other schemes instead of keeping money in a savings account, then you will get more interest as an annual return.
Credit score is bad: Having more than one inactive account also affects your credit score. Credit score deteriorates because there is no minimum balance maintenance in your account. So never let be account dormant, close that account immediately.
These seem to be extra charges: Due to having multiple accounts, you have to pay annual maintenance fees and service charges. Apart from credit and debit cards, the bank also charges you for other banking facilities. So here too you have to lose a lot of money.
Account gets converted from salary to savings: If the salary does not come in any salary account for three months, it gets converted into a savings account. Then the banks treat it as a savings account. According to the bank’s rule, it is necessary to maintain a minimum amount in a savings account. If you do not maintain this, you may have to pay a penalty and the bank can deduct money from the amount deposited in your account.