Many times, people are forced to open multiple bank accounts, even if they do not want a salary account or for other reasons. Some of these accounts depreciate over time, but we continue to keep them open, causing you to incur various types of losses. We will discuss such reasons in order to help you understand why you should close unused bank accounts.
A minimum balance and a monthly average balance in the bank accounts must be maintained, ranging from Rs 500 to Rs 15 thousand. If the monthly average balance is not maintained, the bank may deduct funds from your account in accordance with its policy.
If there is no salary for three months in a row, your salary account with a zero balance is converted into a savings account. In which you must maintain a monthly average balance, similar to a traditional savings account.
Fees for debit cards and SMS
Banks charge a fee for using their debit cards. These fees range from Rs 100 to Rs 1000 per year. Even if you are not using your account, you must pay the debit card fee. At the same time, banks charge a fee for sending SMS to your phone, which can be as much as Rs 30 per quarter.
If you do not make any transactions in your bank account for 12 months, the bank will consider your account inactive. Banks do not prohibit transactions in inactive accounts, but you cannot use a dormant account for net banking, ATM transactions, or mobile banking.
Because of having accounts in multiple banks, there may be complications when depositing taxes. You must provide information about all of your bank accounts when filing your income tax return. Collecting the record of their statement in such a situation is frequently a difficult task.
The investment will suffer as a result.
At this time, many private sector banks require a minimum balance of 10,000 to 20,000 rupees. If you have four such savings accounts, your 40 thousand to 80 thousand rupees will be blocked in order to maintain the minimum balance, which will have an impact on your investment.
There is a risk of fraud, and having an account in many banks is also risky from a security standpoint. Net banking is now used by a large number of people in the country. Remembering everyone’s password is a difficult task in such a situation. If you do not use an inactive account, the chances of it being fraud or fraud are extremely high because you do not change its password for an extended period of time. To avoid this, close the account or use net banking.
