86607This is how low salary people should avail credit card benefits!

Once you start working, it is much likely that you end up having multiple bank accounts – either when you switch jobs or to save for different financial goals or just to avail certain ‘exclusive’ benefits. For instance, over a period of time, a working individual may have one salary account, one savings account, one joint account with spouse, another account to park emergency funds and another account for loan and so on. While having multiple accounts may sound like a prudent financial move, you inadvertently end up making your money matters more complex. Here are a few reasons, why you should keep minimum number of bank accounts:

Maintaining minimum balance

Now a days, account holders need to maintain a minimum balance that may range between Rs 5,000 and Rs 10,000. This means if an individual has five bank accounts, he needs to set aside Rs 25,000-50,000 in these accounts as failing to maintain the minimum balance would attract a penalty.

Lower interest

Idle money sitting in your bank account would earn an interest of around 3%, much lesser than a debt or liquid fund or even a fixed deposit. Besides, analysing interest income from each account while filing the ITR can make the whole process complex.

Keeping a track of charges

From ATM transaction charges to cheque book charges, a bank charges it customers for each service. With multiple bank accounts it is difficult to keep a track of all these charges and you end up paying more.

How many bank accounts should one have

Experts suggest that ideally 2 or maximum 3 bank accounts are sufficient – One salary, one permanent savings and a joint account if needed. While salary account may change when you switch jobs, having a permanent savings account which is linked to your UAN, is helpful. Since the inception of UAN (universal account number), you don’t have to open a fresh provident fund account when you switch jobs. In the long run, you may find it difficult to change your account details every time you need to access your PF savings.