Multiple Bank Account And Financial Losses.

Recently, I opened a new bank account and now I own 8 differrnt bank accounts in differrnt banks of India. I already have many privilege banking accounts which provides me with ample amount of benefits so what made me to open another one? The reason is , I was looking for bank that gives a good return on FD to keep some liquid funds in savings. My earlier banks have revised their rate of interest and some of the new banks are providing much higher rate as compaired to other banks. So to get a higher return, I opted to open a new bank account. However the experts says that one should not own multiple accounts as it lead to loss of money and additional penalty.

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Nowadays, opening a bank account is as easy as ordering from Amazon. It is common practices own multiple accounts. Also few people own multiple accounts owing to their jobs to get their salary. Whenever they switch companies they get an option to choose a new bank account for crediting their monthly salary.

We all need a bank account that allows us financial assistance. From securing our money to do multiple transaction and also to get some return on our amount. Even though the rate of interest are far less , we keep certain funds for safety as well. There are already rising competition among differrnt banks and they comes with new offer now a days. Just for an example : any new banks that are trying to establish themselves in the market are offering much higher rate of interest as compaired to already established banks. Now any individual will thurst on to get themselves a new account for a healthy return. And in processe they keep adding new account in their name. But the real problem starts when the individual fails to keep the average monthly balance in their accounts. The bank starts to levies penalty on such accounts. Currently the Aversge Monthly Balances in banks varies from INR 5000 to INR 15000.

To keep your account active an individual need to keep doing transaction alongwith maintaining the Average Monthly Balances. If they do not do transaction on their bank account then as per RBI guidelines the account stand dormant. As per a report,

Rs 26,697 crore was lying unused in dormant accounts of banks in India.

So the main problem of having multiple bank account is to keep them sufficiently funded and to maintain the aversge balances and also to keep doing transaction from time to time. This is where the indivual fails to do so and get into a position of some financial losses.

In my view, the best way to keep your account active is to keep them running through some kind of ECH or EMI or SIP and keep all account inter connected with your main account to keep them up and running and also to avoid them from becomsing inoperative. It will save you from unwanted financial losses through penalty or bank charges. Also the most importantaly, in case you do not put a bank account in use, simply, check with the banks to closes them ASAP with fomalities. It also saves you from unwanted text msgs.

Peace!!

Namaste @steemflow