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.

Canara Bank has informed that all these changes will come into effect from February 3, 2023. If you are a Canara Bank customer then you will get Check Return, ATM Money Transaction, Fund Transfer, Internet Mobile Banking, Online Fund Transfer You will have to pay new fees for works like ECS debit return, name change and address change etc.

Now the fee will have to be paid on check return

Let us tell you that the customers of Canara Bank will have to pay a new fee on a total of 9 services of the bank. This also includes the fee charged on check return. If a customer’s check is returned due to any technical reason, then in such a situation, no fee will be charged from him, but if your check is returned due to any change, then you will have to pay a fee for it. If the check of less than Rs 1,000 is returned, then you will have to pay Rs 200 as a fee. At the same time, you will have to pay a fee of Rs 300 on a check of Rs 1,000 to Rs 10 lakh.

Bank changed the rule of minimum balance

Along with this, Canara Bank has made changes regarding the minimum balance of the bank. If you do not keep a certain amount in the account, then you will have to pay penalty on it. It will be different according to each area. In rural areas, you will have to maintain a minimum balance of Rs.500. At the same time, it is necessary to maintain a minimum balance of Rs 1,000 in semi-urban areas and Rs 2,000 in big ie metro cities. If you do not maintain the minimum balance according to your area, then you may be fined from Rs 25 to Rs 45 by the bank.

This fee will have to be paid for changing the name

Canara Bank customers will also have to pay a fee for adding or removing names from their accounts. For this, you will have to take 100 rupees as fees and GST. Keep in mind that you will have to pay this fee when you change your name by going to the bank branch. At the same time, the name will have to be changed online. On the other hand, if the joint account holder of an account holder dies, then in such a situation, you will not have to pay any kind of fee for deleting the name.

At the same time, you will not have to pay any kind of fee for changing email, address, mobile number. At the same time, no fee will have to be paid for withdrawing money from the ATM 4 times. At the same time, from the 5th time you will have to pay Rs 5 as fee and GST separately.

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