A bank account is necessary for easy financial transactions in today’s digital environment. For many people one account is enough and there are others who have to manage several accounts. But have your ever thought that is there any limit to maximum number of bank accounts allowed in India? Let’s get started and examine the benefits and drawbacks of having several accounts.
Types of Bank Accounts in India
There are many bank accounts you can choose from.
- Savings Account: A savings account that gives you easy access to your money and earns some interest.
- Current Account: A good choice for businesses that make frequent deposits and withdrawals.
- Salaried Account: A bank account set up by your employer to deposit your salary.
Legal Limit on Bank Accounts
In India there is no legal limit on how many bank accounts you may open. Ultimately, it comes down to what suits your management style and financial objectives the best.
Pros of Multiple Bank Accounts
- Keep track of your money with separate accounts for saving, spending, and goals.
- Some banks offer higher interest rates for keeping a minimum balance. Having accounts in these banks can help you earn more money.
- Accounts with different banks can give you access to more ATMs and branches.
- Spreading your money across accounts reduces the risk that one account gets compromised.
Cons of Multiple Bank Accounts
- Managing many accounts: It can be difficult to keep track of logins, minimum balances, and fees for many accounts.
- Minimum Balance Charges: Failure to keep the minimum balance in each account can lead to penalty charges that eat into your hard-earned money.
- Dormant Account Risk: Accounts that haven’t been used for a long time can become dormant, which can cause problems when trying to use them again.