Disadvantage of multiple bank accounts: Banking has become a very important part of our lives. We transact money daily through facilities like UPI and Internet Banking. For this, we need a bank account. In such a situation, some people have two or three bank accounts. However, having more than one bank account can cause you a big loss.

To maintain every account (bank account maintenance tips), a fixed amount of money (minimum balance) has to be kept in it. Also, people have to keep money in all their accounts to maintain the account. Due to this, if you have more than one account, your large amount gets stuck in the banks.

You get a maximum of 4 to 5 percent annual return on this amount kept in the bank account. On the other hand, if you invest money in other schemes instead of keeping it in the savings account, then you will get more annual returns and you can earn more money through it.

Maintenance fees and service charges also have to be paid.

If you have more than one account, then you have to pay annual maintenance fees and service charges (bank account maintenance charges) for each account. Apart from this, the bank also charges you money for other banking facilities like credit and debit cards. In such a situation, you have to bear the loss here too.

Effects Credit Score

If you have more than one inactive account, then it also has a bad effect on your credit score. Your credit score gets spoiled due to not maintaining the minimum balance in your account. Due to this, you may face difficulty in getting a loan from the bank.

Difficulty in paying taxes also

If you have more than one bank account, then you may also face problems while filing taxes. If you have more accounts, you have to do more brainstorming on paperwork. Also, while filing income tax, information related to all bank accounts has to be kept. Therefore, collecting the record of their statements becomes quite complicated. Also, if you do not provide the details of all the banks, you come under the radar of the Income Tax Department.

Many times when you change jobs, you have to change your bank account as well. In such a situation, when salary is not received in the salary account for three months, then that account gets converted into a savings account. Let us tell you that the rules for both salary and savings accounts are different.

In such a situation, banks treat your salary account as a savings account. According to the bank rules, it is necessary to maintain a minimum amount in the savings account. If you do not maintain it, then you may have to pay a penalty and the bank deducts money from the amount deposited in your account.

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