Disadvantages of having multiple bank accounts: Nowadays, the reach of banks has increased a lot among the people. Usually a person has more than one bank account. But do you know that due to this you may also have to face loss. Most people open accounts but are not able to manage them. In such a situation, let us know what difficulties you may have to face…
At present, along with elders, children also have bank accounts. Most people in the country have a savings bank account. But some people use more than one account. If you have more than one bank account and you are not able to run them smoothly, it may cause monetary loss to you.
Axert says that if you are a salaried person, it is better for you to have a single savings bank account (one savings bank account benefits) than to have multiple savings accounts. According to tax and investment experts, maintaining a bank account is easy and makes your job easier when you are filing your income tax return, as most of your banking details are available in a single bank account.
If you have a single savings bank account, there are some monetary gains as you only have to pay bank service charges like debit card AMC, SMS service charges, minimum balance etc. Will have to do. If you maintain more than one bank account, let us know what loss they may cause.
There may be a possibility of fraud from more than one account
Let us tell you that having more than one bank savings account means the possibility of inactive account in multiple accounts, in which the possibility of fraud is highest. This happens when a salaried person forgets his old salary account while changing jobs. In such a case the salary account becomes inactive and then the possibility of fraud in these accounts is highest.
Danger for CIBIL rating
Having multiple savings accounts can lead to problems in managing your bank account with proper minimum balance etc. In such a case, even a single mistake can lead to penalty, which can directly impact your CIBIL score.
Problem of paying service charge
Regarding this, every bank customer knows that having a bank account involves various service charges, such as SMS alert service charges, debit card AMC etc. If you have a single bank savings account, you have to pay once, whereas in case of more than one bank account, the service charge increases.
income tax fraud
For your information, let us tell you that there is tax exemption on interest up to Rs 10,000 in bank savings account and hence TDS is deducted. Unless you are getting interest of Rs 10,000 in your bank savings account, your bank will not deduct TDS, but due to the number of bank savings accounts being multiple, it may happen that your bank does not deduct TDS like your single bank account. Not cut.
Rs 10,000 does not earn interest in a financial year, but after adding the entire interest in all your savings accounts, it may cross Rs 10,000, making you liable for TDS deduction. In such a situation, you will have to give this information to the income tax department during ITR filing. Failure to do so will result in income tax fraud.
