In today’s digitised world, the banking sector has undergone a remarkable transformation, providing customers with unprecedented convenience and ease. From seamless money transfers to opening accounts from the comfort of home, banking has become remarkably simple. With the advent of video KYC online, the process of opening a bank account has become even more streamlined, leading to a growing trend of individuals opting for multiple savings accounts across various banks. However, while managing multiple accounts can offer certain advantages, it also comes with its own set of challenges. In this article, we will explore the potential pitfalls of maintaining multiple bank accounts and offer insights on how to navigate them effectively.

One of the key considerations when dealing with multiple accounts is the maintenance of the minimum balance. Most banks mandate a minimum balance requirement for savings accounts, and failure to meet this criterion can lead to penalty charges imposed by the bank. With multiple accounts to juggle, it becomes easier to lose track of the balance maintained in each account, increasing the risk of incurring penalties unintentionally.

Furthermore, with the rise in digital transactions, online fraud and scams have become a concerning issue. Operating numerous bank accounts can make individuals more susceptible to falling prey to these fraudulent activities. As such, it is essential to exercise extra caution and adopt stringent security measures to safeguard against potential risks.

Another critical aspect to consider is the inactivity of bank accounts. With multiple accounts at hand, it is possible that some accounts may not be used frequently. However, banks may deactivate accounts that remain inactive for an extended period. Reactivating such accounts may entail additional fees and administrative hassle. To avoid this, it is advisable to make small transactions from all accounts at regular intervals, ensuring they remain active and functional.

While some banking services are offered free of charge, certain services may incur additional fees. It is essential to be vigilant about such charges, as they might be small enough to go unnoticed but can collectively impact an individual’s financial health. Full disclosure of fees assessed by the banks where accounts are held should be readily available, allowing customers to make informed decisions.

While managing two to three bank accounts can be relatively manageable, handling a larger number might prove challenging for some individuals. It is crucial to assess personal financial requirements and capabilities before deciding on the number of accounts to maintain.

To make the most of multiple bank accounts, individuals can adopt effective strategies such as using banking apps and online tools to track balances regularly, setting up automatic notifications for transactions and due dates, and implementing strong security measures to protect against fraud.

2023-07-31T07:23:53Z dg43tfdfdgfd