5 Benefits of Having Multiple Savings Bank Account

Managing finances mainly depend on how you handle your savings and build your wealth. If you are having multiple financial goals, then having multiple savings account could be beneficial. Wealth can be created only if you stop tapping your savings fund despite your needs. In such cases, better to have an emergency fund which can help you overcome short term commitments. Here are some of the benefits of having multiple accounts.

1) Separate Account for Different Financial Goals

Set different account for different purposes, such as emergency fund in a near by account where accessing account is easy. Separate account for your funds tied to various short- and long-term savings.

  

2) Having High Balance Considering DICGC

If you have high balance then it is better to diversify amount into different account, as  deposit insurance and credit guarantee corporation (DICGC) insurance covers each depositor up to Rs 1 lakh. So if you spread your money in different banks and branches you tend to minimize risk.

3) Interest Rate Benefit

As per Income Tax rule, Tax is deducted at source by the bank if the interest income accumulates above Rs 10,000 per account. It is better to avoid to put all your money in the same bank. Depositing money in different banks will help in non deduction of TDS. However, interest on savings account is tax exempt to the tune of Rs 10,000.

4) Multiple Benefits and Options

While, you can enjoy different rates provided by different banks, using different bank ATMs are chargeable, and number of free transactions are also reduced and thus having multiple accounts could be helpful.

5) Withdrawal of Money

As there is a per day limit applied to ATM withdrawal, having more than one account is definitely going to be helpful during withdrawal of funds. With the help of NEFT and RTGS you can transfer funds with minimum fees.

With having multiple accounts, one needs to always keep track of all the accounts. Go online and checking your accounts. Update your latest mobile number and address at the banks.