If something like this is happening with you too, then check whether your bank account has become a dormant account or not. If you do not make any withdrawal from your bank account for 2 years continuously, then it becomes a dormant account. You can neither withdraw money from such an account nor deposit it in it. Checks, ATM cards, netbanking, mobile banking, nothing will work in it. It means that until you activate it, you cannot operate that account.

Understand the difference between a dormant account and an inactive account

When no transaction is done from an account for 12 consecutive months, it is considered an inactive account and when no transaction is done from an account for 24 months i.e. two consecutive years, it is put in the category of dormant account. You can re-activate the inactive account by making a new transaction or you can get it activated again through internet banking, by talking to customer care or by meeting a bank officer, but you do not have the option of doing any kind of transaction in a dormant account.

To use it, you will have to activate it again

To use a dormant account, you have to activate it again. To activate it, you have to go to the bank and meet the bank officer and give them an application in writing to reactivate the dormant account. Along with this, you also have to fill the KYC (Know Your Customer) form. Along with this, you are asked for necessary documents like Aadhaar card, PAN card, driving license, passport, ration card, bank passbook, electricity bill, water bill, landline bill etc. as proof of identity and address. Their photocopies have to be signed and submitted.

There is no activation charge

If you get your dormant account activated again, you do not have to pay any charges for it. The process starts as soon as you submit the application and documents to the bank and your account is activated again within a day or two.

What happens to dormant account deposits

Even if your account has been put in the category of dormant account, you do not need to worry about the amount lying in it because your money is absolutely safe. After activating it, you can withdraw that amount anytime.

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The post When your bank savings account can become dormant, how to revive it first appeared on Rightsofemployees.com.

Keeping more than one bank savings account can lead to monetary loss which people do not pay attention to. If the earning person is a salaried person, it is better to have a single savings bank account than having multiple savings accounts. According to tax and investment experts, maintaining a bank account is easy and when you are filing your income tax return, your work becomes easier as most of your banking details are available in a single bank account.

However, apart from convenience, you will also get some monetary benefits if you have a single savings bank account. Like you can save bank service charges levied on debit card AMC, SMS service charges, minimum balance etc.

These 5 big losses can occur if you keep too many accounts-

Can be a victim of fraud-

Having more than one bank savings account means the account is likely to become inactive, with the highest possibility of fraud. This happens when a salaried person changes job from one organization to another, leaving the salary account there. In such a case, the salary account becomes inactive and as said earlier, such accounts are most prone to fraud.

Threat to CIBIL rating-

Having more than one savings account can make it difficult to maintain the appropriate minimum balance for your bank account. In such a case, even a single mistake resulting in penalty will directly impact your CIBIL rating.

Service charge will increase-

Having a bank account comes with various service charges like SMS alert service charges, debit card AMS, etc. If you have a single bank savings account, you have to pay once, while in case of more than one bank the fee payment is doubled.

Threat to your investment-

It is also necessary to maintain a minimum balance to keep a bank savings account. If you have multiple banks then there is a possibility of a large amount of money getting stuck in your savings bank account.

These days, private banks are asking for a minimum balance of Rs 20,000 and if you have three such bank accounts in three different banks, your Rs 40,000 will be lost in maintaining the minimum balance in the two additional bank savings accounts.

This additional Rs 40,000 can be used for investment purpose and a return of 8 percent can be obtained on it as debt funds attract at least 8 percent in short-term investments. At the same time, in bank savings deposits, interest will be 4 to 5 percent, which is almost half of the amount earned through investment in debt funds.

Income tax fraud-

Bank savings account interest up to Rs 10,000 is tax exempt and hence TDS deducted. So, 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 from your single bank account. Due to which TDS has not been deducted.

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, which has happened unknowingly.

The post Multiple Bank Accounts: Alert for holders of multiple bank accounts, know 5 big disadvantages first appeared on Rightsofemployees.com.

These days, interest in bank savings account is equal to ‘a cumin in a camel’s mouth’. In such a situation, if you find such a scheme which not only gives more interest than the bank. Rather, it should be easy to collect it from the neighboring post office. What’s more, investment in it can also start from just Rs 100. So there is such a scheme in the post office and it is completely safe.

Whenever there is talk of safe investment, then there is talk of FD and RD of banks. People also get the option to do RD in the post office. Investing in Post Office Recurring Deposit (RD) starts with just ₹ 100. Let us tell you which bank’s RD is getting more interest than the post office’s RD.

Interest on post office RD

The government has kept the interest on Post Office RD at 6.7 percent for October-December. This is a kind of systematic investment plan, in which you have to deposit a fixed amount every month. This can be a minimum of Rs 100 in post office RD. You have to run this plan for at least 5 years.

These banks are giving less interest than post office RD

If you see the complete list of banks, all of them offer less interest on 5 year RD than the post office.

The post Post Office Great Benefits! You will get more benefits in this ₹ 100 scheme of post office, check all details first appeared on Rightsofemployees.com.

However, apart from convenience, there are some monetary benefits that you will get if you have only one savings bank account. Like you can save on bank service charges levied on debit card AMC, SMS service charges, minimum balance etc.

These 5 major disadvantages can be caused by keeping more accounts

Can be a victim of fraud

Having more than one bank savings account means the account is likely to be inoperative, with the highest probability of fraud. This happens when a salaried individual changes job from one organization to another leaving behind the salary account. In such a case, the salary account becomes inoperative and as stated earlier, such accounts are most prone to fraud.

Threat to CIBIL Rating

Having more than one savings account can make it difficult for you to maintain the proper minimum balance in your bank account. In such a case, even a single mistake leading to a penalty will directly impact your CIBIL rating.

Service charge will increase

Having a bank account comes with various service charges like SMS Alert Service Charges, Debit Card AMS, etc. If you have a single bank savings account, you will have to make a one-time payment, while the fee payment doubles in case of multiple banks.

Risk to your investment

It is also necessary to maintain a minimum balance for having a bank savings account. If you have multiple banks then there is a possibility of getting a huge amount stuck in your savings bank account.

These days, private banks are asking for a minimum balance of Rs 20,000 and if you have three such bank accounts in three different banks, maintaining a minimum balance in two additional bank savings accounts will sink your Rs 40,000.

The post Multiple Bank Accounts: New updates to people having Multiple Bank Accounts, see otherwise there will be loss first appeared on Rightsofemployees.com.