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Know what are the advantages and disadvantages of having more bank accounts? – News

Multiple Bank Accounts: After the promotion of digital banking, people can easily open a bank account through mobile app or by going online. People have taken full advantage of this facility. Because a bank account is opened sitting at home. KYC is done through video call. Many times people change jobs, then every company has an account in a different bank. In such a situation, if you change jobs 3 or 4 times, then you have to open a salary account in different banks. Due to this people have many bank accounts. But do you know that having more bank accounts has advantages as well as disadvantages.

Let’s talk about the benefits of having more bank accounts.

Benefits of bank offers
Bank lockers with many bank accounts, offer insurance, debit cards along with other services. Banks also give rewards and discounts on paying from mobile bill to electricity bill or water bill. From shopping to buying on EMI, there is also an offer like no processing fee has to be paid. There is also a discount offer for shopping or booking flight tickets or going to restaurants after having more accounts.

Benefits of free withdrawal from ATM
All banks have fixed a limit of free withdrawal from ATM in a month. Most of the banks have 5 times free withdrawal facility. And if you have an account in more banks, then you can withdraw money from ATM many times and will not have to pay any transaction charge.

Eat more for a specific purpose
Many times people keep more bank accounts because there is a special purpose behind keeping every bank account. As home loan is taken from a bank, EMI is paid from the account of that bank. Investment is made in PPF or NPS or mutual funds through an account in a bank. An account is maintained in a particular bank to keep the emergency fund.

Benefit of more insurance cover
Insurance cover is provided by the Deposit Insurance and Credit Guarantee Corporation, a subsidiary of RBI, for deposits up to Rs 5 lakh in a bank account. If the bank sinks, then only 5 lakh rupees will be available even if more than 5 lakh rupees have been deposited in the bank account. In such a situation, by keeping the amount in more bank accounts, it can be ensured that insurance cover will be available on all bank accounts.

But having more bank accounts also has disadvantages.

The hassle of maintaining an average minimum balance
The account holders in every bank have to keep the average minimum balance in the bank account. Failure to do so will result in a penalty. Keeping an average minimum balance in each bank becomes difficult at times. In such a situation, account holders have the disadvantage of having more bank accounts.

Have to pay more charges
If you keep more bank accounts, then more banks will have to pay annual fees to ATM charges, locker fees and account maintenance fees. Higher fees will affect your pocket. If you have only one or two bank accounts, then you will have to pay less fees and your money will also be saved.

loss of interest
The interest on savings account of all banks is not the same. In such a situation, there can be a loss of interest if you keep accounts in more banks. In some banks, more interest is available on the savings account, while some banks give less interest on the savings account. Therefore, it can be beneficial to keep an account in such a bank which gives more interest on the savings account.

Eating too much is a disaster
Tracking multiple bank accounts is also very difficult. The hassle of keeping a separate passbook and check book for each bank. From that, it is difficult to remember the password from the different user ID of each bank. More debit cards also have to be kept. Travel expenses are separate if the bank is away from home. So there are also these advantages of having fewer bank accounts. Only those who have to do more banking transactions should keep more bank accounts.

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