According to a 2017 report by the World Bank, half of the country’s savings account holders had at least one account in inactive mode in the year 2016.
If you also have more than one saving account then you need to be careful. Because it has many disadvantages. The bank account of most salaried people changes with changing jobs. Apart from this, many accounts like home loan account, demat account, personal saving account are opened over time. Due to lack of information, you are unable to know the damage caused by it, but in this article you will be told about 5 major losses of multiple bank accounts.
You will be surprised to know that according to a 2017 report of the World Bank, half of the country’s savings account holders had at least one account in inactive mode in the year 2016. It was the highest in the world. The biggest disadvantage of multiple bank accounts is that you have to keep a significant amount of money in the name of minimum balance. If the money is less than the minimum balance, then penalty will be levied. In this way, the minimum balance amount is no longer of any use to you. Most banks have a minimum balance between 5 and 10 thousand. In this way, your 25-50 thousand rupees become these aquits.
If you maintain a minimum balance in the account, then you will get an annual return of 3-3.5 percent. If you invest this money in mutual funds, stock market or FD, then the returns will be much more than this. Apart from this, every bank charges some other types of charges including debit card charges. It does not matter to the bank whether you use the card or not. This is one kind of disadvantage for the account holder.
When you join a job, the accounts that are opened by the office are zero balance salary accounts. If the salary does not come after three months of leaving the job, then it gets converted into a zero balance saving account. After this, it becomes necessary to maintain a minimum balance. If an account is acquired for two years, the bank considers it to be a dormant account. You will not be able to do any kind of transaction with such an account. Debit card will not work. Neither check, mobile banking and internet banking will work. In such a situation, if you want to get this account active again, you will have to submit the Retain application. If the account is a joint, then the approval of another person will also have to be obtained.
If you have multiple bank accounts, then there will be trouble while depositing tax. Interest income is tax free up to 10 thousand. More income than that is taxed. By having more accounts, calculating the interest income will be difficult for you. However, in this budget, Finance Minister Nirmala Sitharaman said that from next time the information from the source from other income in the return form will come in advance. Your bank account is linked to PAN. With the help of the same PAN number, the Income Tax Department will find out your earnings.
The cases of digital banking fraud have increased a lot in the recent past. In such a situation, banks constantly upgrade their technical and security features. It is advisable to change the password from time to time. Due to having multiple bank accounts, you will have to change your password continuously and remember them as well. If you cannot remember the password, then it has to be noted down in the diary or phone. The diary cannot always be carried and it is not safe to have a password in the phone.
Tax consultant and financial expert Mukesh Kumar Jha says that everyone should keep one to two bank accounts. One will be your salary account and the other will be your personal saving account. All the services in the salary account are free and with the help of a savings account, you control your expenses. This will make it easier for you to remember passwords, burden of minimum balance, calculating interest in filing tax returns.