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.

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

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 Holders: New updates to people having Multiple Bank Accounts, see otherwise there will be loss 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.

RBI has not issued any limit, let us tell you that no limit has been fixed by the Reserve Bank for opening the account. The customer can open 2, 4 or 5 any number of accounts. No limit has been issued by RBI.

There are many problems in keeping multiple accounts. Along with opening a bank account, you have to maintain its minimum balance. Apart from this, you have to manage many other types of facilities.

If you keep more than one account, then you have to pay many charges including its maintenance charge, credit and debit card charges, service charge . So if you keep an account in only one bank, then you will have to pay the charges of only one bank.

Sometimes the penalty has to be paid, the minimum balance in many banks is 5000 and in many banks it is 10,000. If you keep the balance less than this, then you have to pay penalty, which directly affects your CIBIL score.

You have to fill the form RBI has told that you should close your unnecessary accounts, so that you do not have to face such trouble. Let us tell you that to close the account, you have to fill a D-Link form. You get the account closure form from the branch of the bank, after filling it and submitting your account gets closed.

The post Bank Accounts: Big News ! RBI gave big information to those having more than one bank account…!, see here details first appeared on Rightsofemployees.com.