If you’ve also opened several bank accounts, there’s good news for you. Multiple bank accounts may result in financial loss. Keeping a single account is also recommended by tax and investment experts, who claim that having a single bank account makes filing returns easier.
What are the drawbacks?
The first disadvantage is the maintenance if you have accounts in several banks. In reality, each bank has its own maintenance fee, debit card fee, SMS fee, service fee, and minimum balance fee. That is, depending on how many banks you have accounts with, you will have to pay different fees. In addition, if the minimum balance is not maintained, banks will levy significant fees.
It’s simple to file a return from a single bank account.
According to tax professionals, if you have a single bank account, filing returns is simple. Because your entire earnings history is stored in a single account. The fact that there are multiple bank accounts complicates and increases the size of this estimate. In this case, the tax agency may issue you with a notice. In this budget, Finance Minister Nirmala Sitaraman established a new method to address these issues.
The calculation will be paid by the taxpayers.
Information about income from sources other than wages, such as dividends, capital gains, bank deposit interest income, and post office interest income, will be pre-filled under this new rule. Until now, taxpayers had to figure it out on their own. He used to have difficulties remembering this because he had forgotten it so many times. All of this data will now be pre-filled. The PAN card will be used to obtain this information.
The account will be disabled.
If there are no transactions in a savings or current account for a year, it becomes an Inactive Bank Account. It is turned to Dormant Account or Inoperative if there are no transactions for two years. The risk of fraud increases with such a bank account. According to bankers, the chances of internal and external fraud are greater with these active accounts. In this case, the details are recorded in a separate ledger.
A fee is charged by a private bank.
Private banks have an extremely high minimum balance charge. The minimum balance at HDFC Bank, for example, is ten thousand rupees. It is Rs 5000 in rural areas. The penalty for not keeping this balance for one quarter is Rs 750. Other private banks are subject to similar fees as well. If you fail to maintain the minimum amount by accident, you may be forced to pay hundreds of rupees every month. This has an impact on your CIBIL score as well.
Thousands of people will be affected.
If you have many bank accounts, you would be spending hundreds of rupees per month just to keep the minimal amount. This has an impact on your investment. The money on which you should expect a return of at least 7-8 percent will be held as your minimum balance. Returns of up to 7-8 percent can be easily discovered by investing this money in the proper area.
