Multiple bank accounts

Multiple bank accounts

These days most people are having multiple bank accounts like more than one account in different bank. But today’s most people don’t know about how to manage them to get best benefits available. There are every single rules and we can say terms & condition mentioned in our financial system and people needed to follow them strictly so that their respective government can track them and manage them for tax returns and benefits.

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These days when people are having one saving account and when they are hired by some companies then they are needed to open a salary account to get their salaries for the work. And in that case most people leave or forget their previous saving account and this might harm them financially.

There are pros and cons and for both conditions like having for multiple bank accounts. In this article, we will discuss about both the positive and negative aspects of having more than one accounts.

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Multiple bank account pros and cons:

Pros:

1. These days’ bank offers limited ATM transactions but if someone having more than one bank account then their limit becomes simply double because of having multiple debit or ATM cards.
2. If someone having multiple accounts, then they have flexibility to transfer their funds in an account which offers higher interest rate.
3. Having multiple account gives multiple cheque book so need not rush when one cheque book finishes.
4. These days all banks are giving credit card to their uses. So person having more than one account have’s flexibility to choose best option in terms of credit card.

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Cons:

1. Every bank account needed to maintain a minimum balance so every user needs to invest some amount as minimum balance.
2. Saving account gives only 3-4% interest so no more profit in investing multiple bank accounts. Comparatively investing in mutual funds and share market gives more interest rate or output. But is a risky marketplace somewhere.
3. Users some amount will always be engaged in their different accounts as a minimum threshold amount that they can’t use anyhow. So this is the waste of money.
4. When you’re using more than one bank account then you’re needed to give extra money in terms of account maintenance fees, debit card annual charges and SMS alert charges etc.
5. When filing the income tax return, then user needs to maintain all records about their all bank accounts and needed to provide account statement to them.

Conclusion: In above analysis, we discussed both pros and cons of having multiple bank accounts. But it is a good suggestion to always carry only single account for best user experience. This gives you relaxed life and you can do your business and job without worries.

Also when it comes to investment, mutual funds are best alternative but they are a bit riskier side. To minimum the risk, you are suggested to invest in ELSS scheme which is Equity linked saving scheme. This is one of the safer scheme in mutual funds but some risk is still there. So advised to read all related documents carefully.