Many of us facing this question for a while now. Here in this post, we will discuss an important topic Is it good to have multiple bank accounts?
Is it good to have multiple bank accounts?
As you all know there are different types of Bank accounts. The common use of any bank account is to save money and transact money with different people or with the bank. Many people believe that only one bank account is enough for them. But here we discuss should you have multiple bank accounts. And what are the pros and cons of this?
Types of accounts in a bank
Most commercial banks are providing the 3 to 5 types of bank accounts to their customers.
- Saving bank account
- Current account
- Salary account
Advantages of current account
The Current account is mostly used by the business where the number of transactions will be more on a daily basis. Here are some extra benefits given to the customer. Current accounts allow overdrafts, or taking out more money than is currently in the account.
The saving account and Salary account are almost the same. The only difference is the salary account is the account the salary gets credited every month if you are unemployed.
Disadvantages of salary account
Apart from the many advantages Salary account has many disadvantages also
Salary accounts are actually Zero Balance accounts, although they offer all the benefits of Savings Accounts (SA). In contrast to SA, you are not required to keep a minimum balance in a paid account. Additionally, some banks provide discounted rates for completing transactions, such as lower NEFT fees, a higher monthly limit on ATM withdrawals, etc. It may not be possible if you need to make a large withdrawal or transfer.
Must read: 7 Best ways how to save money from monthly salary
How many bank accounts can a person have?
There is no explicit restriction on the number of bank accounts one person may hold. In general, as long as a person is abiding by all legal and regulatory requirements, they are free to have as many bank accounts as they desire.
Having multiple bank accounts has various advantages. It can assist with improved money management, spending tracking, and savings allocation, for instance. Furthermore, having accounts with various banks can give you access to a wider variety of financial services, which can be helpful in various circumstances.
Nevertheless, it is critical to remember that each account may have unique fees, minimum balance requirements, and interest rates. Therefore, it is essential to pick accounts carefully and to keep an eye on them frequently to prevent unforeseen costs.
How to check how many bank accounts I have?
- Check your bank statements: Compile all your recent bank statements and look over them to determine how many accounts you have. The account number and kind of account you have will be displayed on the statements.
- Speak with your banks: Request a list of all your accounts by contacting each bank where you have an account. The account numbers and types of accounts you have will be disclosed to you by the bank.
- Use online banking to find out how many accounts you have with the bank: If you have access to Internet banking, sign in and examine your account summary.
- Use mobile banking to view all of your accounts in one location. Some banks provide smartphone apps for this purpose. To find out how many accounts you have with the bank, check the app.
Can we open 2 accounts in the same bank?
Yes, can open more than 2 accounts in the same bank. As an Individual, you can open more than one account at the same bank. The majority of banks allow their clients to create several accounts as needed to meet their financial obligations. A person might decide to open a checking account for daily spending and a savings account for long-term financial objectives, for instance.
There are various benefits to opening multiple accounts with the same bank. Since all of your accounts are in one location and money transfers are simple, it makes managing your finances simpler. Additionally, some banks may give their clients who have multiple accounts with them preferential interest rates or waive specific fees.
Benefits of multiple bank accounts.
Better financial organization: Having several bank accounts for bills, savings, and personal expenses can make it simpler to keep track of your money and make sure you don’t overspend in any one area.
Decreased dependency on one bank: Many times we see the ATM card of the particular bank is now working due to server issues.
We also experience some banks are collapsed if many depositors take out their money at a time. So this could be a very serious problem if you have a single account. Your money could be blocked and you may not use it. So, if you have multiple bank accounts this issue may not arise.
Potential for better interest rates and benefits: Some banks provide multiple-account holders with higher interest rates, cashback benefits, and other benefits. You may be able to increase your income or reduce expenses by taking advantage of these offerings.
Final words
Is it good to have multiple bank accounts? It has several benefits aligned with drawbacks if you are not able to manage it properly. We hope you understood the topic Is it good to have multiple bank accounts?
