Disadvantages of having Multiple Bank Account

Having Bank Account is Advantageous in many ways, like it help Account holder save his money and provide safety to the money against theft. Also possessing Bank account, let’s user enjoy digital services like online Banking & e-service. Due to rapid digitalization in Banking sector, many customers opt for opening Multiple Bank Account. Some user open Multiple Bank account for specific purpose like to receive job salary or some open just to keep the surplus of money. In this article, we will brief about the disadvantages associated with opening of multiple Bank Account.

Disadvantages of having Multiple Bank Account

1. If an Account holder doesn’t make any transaction in his account in 12 month then Bank declare such Account as inactive. Furthermore, if no transaction has been made for 24 month then it is turned into dormant account or partially closed. Bank Customer then need to follow some formalities stated by RBI to reactivate his dormant account.

2. Sometimes the Bank Customer due to possessing of multiple bank accounts fails to maintain minimum Account Balance in account. Due to this, the Bank starts debiting charge from Account holder Account for not maintaining minimum balance in account.

3. Possessing of multiple account by Account holder would lead to surge in the overall charges that bank debit from one’s Account in return for service like SMS Alert service, ATM Card Service, Credit Card Service, Cheque Book Service, etc.

4. Possessing multiple accounts also cause poor effect on Credit Score Level thus causing problems in getting future loans sanctioning.

5. Sometimes it is also seen, if a Salary Account isn’t credited with Salary from long time then Bank converts it into saving account after which you will Charged with all kind of fines as per Saving Account rules. 

6. If you maintain more than one account, it might comes in the eyes of the government and income tax, due to which you may have to pay more tax in future.

Things that should be kept in mind if you have multiple Bank Account

1. Account holder should close all such Bank Account that isn’t needed anymore to avoid any kind of penalty or fees.

2. On event of death of Account holder, the nominee should apply for Account closure at Bank by submitting Account closure application letter or by filling Account closure form

3. Account holder should not apply for wanted service like ATM Card, if already having of some another Bank. ATM Card Service is not mandatory thus on rejecting this service Account holder can save 130 yearly.