Here's why multiple bank accounts can harm your money
By Lokmat English Desk | Published: December 8, 2021 08:56 PM2021-12-08T20:56:37+5:302021-12-08T20:56:37+5:30
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If you have more than one bank account, be sure to read this news. Many bank accounts can cause you financial loss as well as many other losses. Tax and investment experts also recommend having a single account and say that having a single bank account is always beneficial.
If the account is maintained in many banks, the first loss is the maintenance fee. Meanwhile, each bank has its own separate maintenance charges, debit card charges, SMS charges, service charges, minimum balance charges. That means you have as many bank accounts as you have.
According to tax experts, it is easier to file a return if you have only one bank account. Because all the information about your earnings is available in one account. This calculation is difficult and large as there are different bank accounts. In that case, the tax department may serve you notice.
Under the new rules, information on income from sources other than salary income, such as dividend income, capital gains income, interest income on bank deposits, interest income at post office will be filled in advance.
If no transaction is made in the savings account or current account during the year, it is converted into Inactive Bank Account. If no transaction takes place for two years, it is converted to Inoperative Dormant Account.
Such a bank account increases the risk of fraud. Bankers say that these active accounts are the most likely to cause internal and external fraud.
The minimum balance charges of private banks are very high. For example, HDFC Bank has a minimum balance of Rs 10,000. For rural areas it is Rs.5000. If this balance is not maintained, a quarter penalty is Rs.750. Similar charges apply to other private banks.
If you have multiple bank accounts, you will have to spend thousands of rupees per month to maintain a minimum balance. This affects your investment.
