Did you find it difficult to manage your saving bank account? If Yes, you are not alone. Saving bank accounts enables us to make various payments. There is no limitation on opening saving account in banks. For each of their financial goals, one can open a saving account.
One can create a saving account for day to day bill payments. Here, daily expenses can be tracked. One can create a separate account for the emergency fund that will only be used in emergency situations.One who is interested in investing will open a saving account for stock trading and invest in the share market.
It is difficult to consolidate the entire transaction from various accounts. You’ll have a lot of account books, various debit cards and multiple net banking passwords. Banks will have distinct interest rates, charges, rules and penalties.
We really need answer for “How many bank accounts should I have in India?”.
How many saving account should I have?
Many individuals use saving bank account to pay monthly bills using either net banking facility or debit cards. A saving bank account is required for your day-to-day payments.
If you maintain all your cash in this account, you will end up spending money on your expenses. It is necessary to maintain some cash for other reasons such as emergency, investment, pension, etc.
If you are a salaried employee, you will have a salary account. Keeping money in your salary account is risky as your employer can reverse any transaction without informing you.
So Any salaried person should have three saving bank account, one in salary account, private or cooperative bank account for day to day operations, one for your savings in PSU banks.
If you have any specific requirements, you can open an additional saving account. It is hard to keep too many saving bank account.
- Every bank’s Internet banking is distinct. It is hard to remember and maintain passwords. You are compelled by banks to modify passwords on a regular basis.
- Multiple check books, various account passbooks and various atm / debit cards and pins will be given to maintain
- When the banks ask you to update your data like KYC, you have to run around different banks.
- One will lock your cash for minimum account balance with lower interest rate. Otherwise, the cash may be invested for higher interest.
- Annual fees should be paid for atm / debit cards and sms.
- There are transaction charges to be paid to transfer money between your accounts.
- Difficulty in consolidating the history of transactions. Investment planning is difficult as your cash is scattered in various accounts.
- Each bank has distinct rules, fees, and penalties. Accordingly, you must remember and retain.