ALERT! More than one bank savings account can harm your money? Know here top 5 disadvantages of multiple bank accounts.
If you have hold the more bank accounts then more money you keep locked in those accounts. Most of banks demand a minimum balance requirement from an account holder and bank could also attract penalty on non- maintenance account.
TidingsTimes
Many people have opening multiple bank accounts either after they change jobs or saving for specific goals like buying a house, child’s education so on.
According to the World Bank’s 2017 Global Findex report, almost half of the account holders in India had an account that remained inactive in 2016. This is the highest in the world and about twice the average of 25% for developing economies.
If you have hold the more bank accounts then more money you keep locked in those accounts. Most of banks demand a minimum balance requirement from an account holder and bank could also attract penalty on non- maintenance account.
According to the tax and investment experts, it's easy to maintain one bank account and when you are filing your Income Tax Return, your job becomes easier as majority of your banking details are available in single bank account. However, apart from convenience, there are some monetary benefits if you have single savings bank account as you will be paying bank service charges being levied on the debit card AMC, SMS service charge, minimum balance, etc.
Know here these are the top 5 losses due to more
than one bank savings account:-
- Having more than one bank savings account means chances of dormant account, which is most prone to forgeries. it happens when a person switches job from one organization to other and leaving salary account as it is where it is. In that case, the salary account becomes dormant and such accounts are most prone to forgeries.
- More than one bank account have face many problem like managing minimum balance requirement, ITR Filing etc. In such type case bank may lead to penalty that is directly affect on your CIBIL Score.
- Charges like SMS alert service charge, debit card AMC etc attracts on every bank account. It means if you have single bank account then you will pay once, while in case of multiple account your service charges gets double.
- Today Every Bank Saving Account have minimum balance requirement. if you have multiple bank account then a chance of big amount getting choked in account. Now A day’s most of the banks making a rule for Rs 10000 minimum balance.
- In saving account, interest up to Rs 10,000 is tax exempted and hence the TDS deduction. So, till you're getting Rs 10,000 interest in your bank saving account, your bank won't deduct TDS, but because of the multiple number of bank saving account, it's going to happen that your bank didn't deduct TDS as your single checking account didn't garner Rs 10,000 interest in an exceedingly fiscal year but after adding the complete interest altogether your an bank account, it should cross Rs 10,000 making you chargeable for TDS deduction. therein case, you may should inform the taxation Department about the identical during ITR filing. Failing thereto will result in tax fraud, which committed unknowingly.
