Inactive savings accounts hurt you, closing is the only benefit deal

New Delhi: Many people keep many savings accounts. Some people do this thoughtfully because they believe that keeping money in a separate account is beneficial and convenient. But there are also some different reasons why many people increase the number of savings accounts, such as frequent job changes, moving from one city to another for employment, business needs, and so on.

If you have a lot of savings accounts and you only use one or two accounts then it is a good decision to close the remaining accounts. Today we will tell you about some of the disadvantages of having more savings. But first let’s talk about its advantages.

The benefits of having more savings accounts

If you have a lot of savings accounts, you can deal more with ATMs. Many can keep checkbooks and credit cards.

One of the major reasons for having more savings accounts is that in case of bankruptcy of a bank, it is guaranteed to recover up to Rs 5 lakh from the deposit. This is the reason why people keep more savings accounts and keep less money in them.

The benefits of having more savings accounts

Minimum Balance Status: This rule applies to all bank savings accounts that you have to have a minimum monthly average balance in each account. If you have a lot of savings accounts and you are only using one or two, you will have to keep a certain amount in the remaining accounts.

Penalty to be paid: If customers are unable to maintain a minimum balance in the savings account, according to the rules, a penalty has to be paid.

The transaction should continue even if a minimum balance is maintained in the dormitory bank account. If the account has not been traded for a long time, the account becomes inactive. Once the inactive account is reactivated, a complete process has to be followed.

Maintenance Fees and Service Charges: Annual maintenance fees and service charges are levied for bank accounts. This rule applies to all banks. Remember, maintenance fees and service charges are charged on all accounts, whether used or not. In addition, if you have a debit or ATM card for each account, you will also have to pay a fee.

All your accounts must be provided when filing an income tax return. Gathering information related to all the accounts like bank statements is also a big task. If an account details are mistakenly missed, the problem may get worse. The income tax department considers it tax evasion, then you may face a fine or tax notice.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *