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 his salary. New accounts kept opening, but he forgot to close the old accounts. One day Tarun came to know that fraud was committed 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. Many types of charges can be imposed on you unnecessarily. At the same time, your CIBIL score can also deteriorate. Let us know what is the loss of having more than one bank account.
The hassle of minimum balance
Having accounts in more than one bank can cause you a big loss. To maintain each of your accounts, a fixed amount (Minimum Balance) has to be kept in it. Meaning that by having more than one account, your large amount 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 money in other schemes instead of keeping it in a savings account, then you will get more interest as an annual return.
These extra charges are levied.
If you have multiple accounts, you have to pay the annual maintenance fee (Bank account maintenance free) and service charge (Bank service charge). Apart from credit cards and debit cards, the bank also charges you for other banking facilities. So here also you have to bear a lot of money loss.
Credit scores gets affected
Having more than one inactive account also has a bad effect on your credit score. If the minimum balance is not maintained in your account, then your credit score is affected. Therefore, never take an inactive account lightly, and close that account as soon as you leave the job.
The income tax department keeps an eye on it.
Having accounts in multiple banks leads to a lot of problems while depositing tax. There is also a lot of hassle in paperwork. Also, while filing income tax (ITR return file), 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 see them.
Account converts from salary to savings.
If the salary is not received in any salary account for three months, it gets converted into a savings account. By converting it into a savings account, the rules of the bank regarding the account change. Then the bank treats it as a savings account. According to the rules of the bank, it is necessary to maintain a minimum amount in the savings account. If you do not maintain it, then you may have to pay a penalty and the bank can deduct money from the amount deposited in your account.
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