Having many bank savings accounts might result in financial loss that goes unnoticed by consumers. A single savings account is preferable than many savings accounts if the earner is salaried. It is simple to keep a bank account, and since most of your financial information is accessible in a single bank account, completing your income tax returns is made simpler, according to tax and investment professionals.
However, having only one savings bank account has several financial advantages in addition to ease. For instance, you may cut down on bank fees assessed on debit card AMC, SMS fees, required minimum balance, etc.
Having extra accounts may lead to these five serious drawbacks.
Possibly fall victim to fraud
Having several bank savings accounts increases the likelihood that the account will be inactive and subject to fraud. This occurs when a paid person switches jobs within the same company but leaves the salary account behind. The salary account ceases to function in this situation, and as was already said, these accounts are the most vulnerable to fraud.
the CIBIL rating is at risk
Maintaining the required minimum level in your bank account might be challenging if you have several savings accounts. In such a situation, even a single error that results in a fine will have an immediate effect on your CIBIL rating.
The service fee will rise.
A bank account entails a number of service fees, such as SMS Alert Service Fees and Debit Card AMS. If you have a savings account with only one bank, you will only need to pay the charge once; if you have accounts with different banks, the cost will need to be paid twice.
Your investment is at risk
A minimum amount is also required to maintain a bank savings account. There is a chance that a significant sum might get stranded in your savings bank account if you have various institutions.
A minimum level of Rs 20,000 is now required by private banks, and if you have three of these accounts in three separate banks, keeping a minimum amount in two extra bank savings accounts would cost you Rs 40,000.
