Many open multiple bank accounts for various reasons like salary accounts for different organizations, different accounts for savings or investments, etc. Whatever be the reason for opening, having surplus bank accounts does more harm than good to the account holder, especially if they are not in regular use. Read through to learn the reasons that compel to close your surplus bank accounts.
Unnecessary maintenance of minimum balance across accounts. Most savings accounts ask for the maintenance of the minimum monthly balance or an average quarterly balance. In most cases, even the salary accounts, which work on zero balance for maintenance, are automatically converted into a savings account after three months of non-operation and thus begin to require minimum balance maintenance.
The maintenance cost of the multiple bank accounts turns out to be an unwanted burden, especially when the accounts are not in use. So, if you have been opening different salary accounts for every company you are working with, do not forget to close them when you quit the organization, especially when the account is not in use.
What if you do not maintain minimum monthly balance? Simple, you would be penalized for non-maintenance.
If you opt to maintain the minimum balance and continue with multiple accounts, you will have to pay small monthly charges towards SMS alerts, debit card charges, ATM usage, and phone banking. These little charges add up to become a substantial corpus in the long run, which could actually be unnecessary. Thus, smaller monthly charges turn out to be a financial drain in the long-run.
If you do not close nor maintain minimum balance across multiple bank accounts, there is a high possibility for misuse of the non-working accounts. Most unattended accounts are highly prone to security risks.
Rather, the maintenance charges and small monthly charges that banks ask for could actually be diverted to better investment channels, which offer higher returns. Moreover, you need not invest your time and energy on keeping a track of your surplus bank accounts.
Take this simple step towards of closing unwanted or unused bank accounts to maintain a good financial health! For more advice on personal finance and holistic financial planning, approach ArthaYantra – world’s only full-service Robo advisory.