Multiple Bank Accounts: Be careful with more than one bank account, you will have to face these problems...
If you have more than one bank account and are not able to manage them smoothly, it may cause monetary loss to you. Axert says that if you are a salaried person, you should have a single savings bank account than to have multiple savings accounts.
According to tax and investment experts, maintaining a bank account is easy and makes your job easier when you are filing your income tax return, as most of your banking details are available in a single bank account.
If you have a single savings bank account, there are some monetary benefits too, as you only have to pay bank service charges like debit card AMC, SMS service charges, minimum balance, etc. as there is only one bank. If you maintain more than one bank account, let us know what loss they may cause.
Possibility of fraud-
Having more than one bank savings account means the possibility of a dormant account, which is most likely to be fraudulent. This happens when a salaried person forgets his old salary account while changing jobs. In such a case the salary account becomes inactive and then the possibility of fraud in these accounts is highest.
Threat to CIBIL rating-
Having more than one savings account can cause problems in managing your bank account with proper minimum balance etc. In such a case, even a single mistake can lead to a penalty, which can directly impact your CIBIL rating.
Tension of paying service charge-
Having a bank account comes with various service charges, such as SMS alert service charges, debit card AMC, etc. If you have a single bank savings account, you have to pay once, whereas in the case of more than one bank, the service charge increases.
Income tax fraud-
There is tax exemption on interest up to Rs 10,000 in a bank savings account and hence TDS deduction. Unless you are getting interest of Rs 10,000 in your bank savings account, your bank will not deduct TDS, but due to the number of bank savings accounts being multiple, it may happen that your bank does not deduct TDS like your single bank account. Not cut.
Rs 10,000 does not earn interest in a financial year, but after adding the entire interest in all your savings accounts, it may cross Rs 10,000, making you liable for a TDS deduction. In such a situation, you will have to give this information to the Income Tax Department during ITR filing. Failure to do so will result in income tax fraud.
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