In today’s wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital world, it’s very common to have multiple bank accounts. You change jobs, your new employer opens a fresh salary account. You find a tempting offer from another bank and open one more. On the surface, it feels like you have more choices. But in reality, having too many accounts can cost you money, time, and peace of mind.
Here are the 6 big losses you face if you’re juggling multiple bank accounts
1 The Blow of Minimum Balance
The biggest financial drain is the minimum average balance (MAB) requirement.
- Zero-balance salary accounts are only valid as long as your salary keeps getting credited. Once that stops for 3 months, the account turns into a regular savings account.
- In regular accounts, banks expect you to maintain a minimum balance (₹5,000–₹10,000 depending on the bank).
- Fail to maintain it? You’ll be charged a penalty every month or quarter, silently eating away your money.
👉 Imagine maintaining ₹10,000 in four different banks. That’s ₹40,000 stuck, just to avoid penalties!
2 Silent Charges You Don’t Notice
Banks rarely give you anything for free. Each account comes with hidden charges like:
- 💳 Debit card fees: ₹150–₹500 per year, per card. If you have 4 accounts, that’s ₹600–₹2,000 gone every year.
- 📲 SMS alert fees: ₹15–₹25 per quarter. Over a year, that adds up too.
And since these charges are deducted directly from your account, you often don’t realize how much you’re paying.
3 Dormant Account Trouble
According to RBI guidelines, if you don’t make any transaction in an account for 24 months, it becomes dormant.
- You can’t withdraw, deposit, or even use net banking.
- To reactivate, you must visit the bank with KYC documents, a process that’s both time-consuming and frustrating.
👉 Many people forget about old accounts, only to realize later that money is stuck inside them.
4 Money Blocked Without Returns
Multiple accounts = blocked funds.
- Suppose each account requires a ₹10,000 minimum balance. Four accounts mean ₹40,000 just sitting idle.
- Savings accounts offer very low interest (2.7%–4%), which hardly beats inflation.
Instead of leaving money idle, you could invest that ₹30,000–₹40,000 in:
- Fixed Deposits (FDs)
- Mutual Funds
- Gold ETFs
These options give far better returns.
5 Password & PIN Mayhem
Every account comes with:
The more accounts you have, the more credentials you need to remember.
- Use the same password everywhere? 🚨 Huge security risk. If one account is hacked, all are at risk.
- Use different passwords? 🤯 Big headache to remember them all.
Either way, multiple accounts increase your cybersecurity risks.
6 Income Tax Return (ITR) Headache
When filing ITR, you must provide details of all bank accounts you hold.
- That means collecting account numbers, IFSC codes, and annual interest statements for every account.
- Many people forget old, inactive accounts—this can lead to ITR mismatches or even IT notices.
👉 Fewer accounts = easier tax filing and less stress.
✅ Final Word: Less Is More
While having one or two accounts is smart for salary, savings, and emergency purposes, keeping 4–5 active accounts is often a burden. It means:
- More penalties ⚠️
- More charges 💸
- More paperwork 📑
- More stress 😓
- Disclaimer:
- The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.
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