Bank Accounts Tips: 6 big disadvantages of having more than one bank account, know the important thing..
Any salary account is converted into a savings account if the salary is not received for three months. The bank's rules regarding the account change when it is converted into a savings account. Then the bank treats it as a savings account. As per bank rules, it is necessary to maintain a minimum balance in a 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.
The salary account is converted into a savings account-
Any salary account is converted into a savings account if the salary is not received for three months. The bank's rules regarding the account change when it is converted into a savings account. Then the bank treats it as a savings account. As per bank rules, it is necessary to maintain a minimum balance in a 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.
You will not get better interest-
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 of money in it. That means 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. On the other hand, if you invest the money in other schemes instead of keeping it in the savings account, you will get more interest as an annual return.
Credit score gets spoiled-
Having more than one inactive account also has a bad effect on your credit score. Not maintaining the minimum balance in your account spoils your credit score. Therefore, never take an inactive account lightly, and close that account as soon as you leave the job.
There is a problem in filing income tax.
Having accounts in many banks leads to a lot of problems while depositing taxes. There is also a lot of hassle in paperwork. Also, while filing income tax, information related to all bank accounts has to be kept. Often, collecting the record of their statements becomes a very complicated task.
These extra charges are levied-
Having many accounts means 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 suffer a lot of money loss.
Risk of fraud-
Having accounts in many banks is also not right from a security point of view. Everyone operates the account through net banking. In such a situation, remembering everyone's password is a very difficult task. By not using an inactive account, the chance of fraud or cheating is very high, because you do not change its password for a long time. To avoid this, close the account and delete its net banking.
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