Bank accounts are most essential for all of us but is it good to have multiple bank accounts? Here are the top 5 things you must know.
Earning money is always hard, so keep it in a safe place is been a difficult task for all of us. Everyone wants to keep their hard earned money in the safest place. Banks has been a perfect place for keeping the money over the place.
Is it good to have multiple bank accounts
Banks not only helps us to deposit our money but also helps us to grow our money in short terms and long terms.
Do we really need multiple bank accounts?
The situation and money spending habit could vary from person to person. Having multiple bank accounts brings many benefits as well as problems.
Managing multiple accounts
As we all know that all banks charge some money to run the account in terms. The charges could be Annual charges, SMS charges, Email Alert Charges, Taxes, Processing charge etc.
If you have multiple accounts then you need to pay all the charges for all your accounts.
If you have multiple accounts then you need to keep the money to maintain the minimum balance for all the accounts.
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You need to keep the track of all transactions of all accounts to avoid any fraud.
There may be changes in rules in time to time for different banks. If you are a multi account holder then you need to keep an eye of all the rules and regulations regularly.
Need to have a separate saving account
If you have multiple financial goals then you can have multiple accounts to keep your money separate and grow.
This will give a clear cut idea for the money and the amount deposited.
An emergency fund is another major reason why you need to keep your money separate from your monthly budget. The emergency fund must be the 3 months of your salary or expenditure.
If you have multiple accounts you can manage your bills well. You could have a separate account for all your credit card payment and bill and other accounts can be used as your savings account and loan account.
Advantage of interest rates and rewards
Different banks have a different interest rate for loan and deposit. If you have multiple accounts then you could take the advantage.
Different bank offers different interest rates for Car loans and home loans.
If you use a different bank account then you can take advantage of different reward programs.
Different banks offer the facility like zero EMI, fewer interest rates, Cash backs.
Safety is a concern
As the world is moving towards cashless money the online fraud is boosting. If you have multiple bank accounts, you could be in a safer position.
If you use Debt card a lot then you may face some problem if that card got stolen or damaged. So you must have multiple bank account along with the debit card.
As we discussed all the aspect of Multiple bank accounts the need could vary from person to person. As a user, you need to decide. So this is all about for today’s topic Is it good to have multiple bank accounts? Top 5 things you must know.