Bank Accounts Overload: 6 Hidden Losses of Having Too Many Accounts
In today’s wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW">digital world, it’s very common to have multiple bank accounts. You change jobs, your new employer opens a fresh salary account. You find a tempting offer from another bank and open one more. On the surdata-face, it feels like you have more choices. But in reality, having too many accounts can cost you money, time, and peace of mind.Here are the 6 big losses you data-face if you’re juggling multiple bank accounts1 The Blow of Minimum BalanceThe biggest financial drain is the minimum average balance (MAB) requirement.
2 Silent Charges You Don’t NoticeBanks rarely give you anything for free. Each account comes with hidden charges like:
3 Dormant Account TroubleAccording to RBI guidelines, if you don’t make any transaction in an account for 24 months, it becomes dormant.
4 Money Blocked Without ReturnsMultiple accounts = blocked funds.
5 Password & PIN MayhemEvery account comes with:
6 Income Tax Return (ITR) HeadacheWhen filing ITR, you must provide details of all bank accounts you hold.
✅ Final Word: Less Is MoreWhile having one or two accounts is smart for salary, savings, and emergency purposes, keeping 4–5 active accounts is often a burden. It means:
- Zero-balance salary accounts are only valid as long as your salary keeps getting credited. Once that stops for 3 months, the account turns into a regular savings account.
- In regular accounts, banks expect you to maintain a minimum balance (₹5,000–₹10,000 depending on the bank).
- Fail to maintain it? You’ll be charged a penalty every month or quarter, silently eating away your money.
2 Silent Charges You Don’t NoticeBanks rarely give you anything for free. Each account comes with hidden charges like:
- 💳 Debit card fees: ₹150–₹500 per year, per card. If you have 4 accounts, that’s ₹600–₹2,000 gone every year.
- 📲 SMS alert fees: ₹15–₹25 per quarter. Over a year, that adds up too.
3 Dormant Account TroubleAccording to RBI guidelines, if you don’t make any transaction in an account for 24 months, it becomes dormant.
- You can’t withdraw, deposit, or even use net banking.
- To reactivate, you must visit the bank with KYC documents, a process that’s both time-consuming and frustrating.
4 Money Blocked Without ReturnsMultiple accounts = blocked funds.
- Suppose each account requires a ₹10,000 minimum balance. Four accounts mean ₹40,000 just sitting idle.
- Savings accounts offer very low interest (2.7%–4%), which hardly beats inflation.
- Fixed Deposits (FDs)
- Mutual Funds
- Gold ETFs
These options give far better returns.
5 Password & PIN MayhemEvery account comes with:
- Net banking login
- Mobile banking app
- Debit card PIN
- UPI PIN
- Use the same password everywhere? 🚨 Huge security risk. If one account is hacked, all are at risk.
- Use different passwords? 🤯 Big headache to remember them all.
6 Income Tax Return (ITR) HeadacheWhen filing ITR, you must provide details of all bank accounts you hold.
- That means collecting account numbers, IFSC codes, and annual interest statements for every account.
- Many people forget old, inactive accounts—this can lead to ITR mismatches or even IT notices.
✅ Final Word: Less Is MoreWhile having one or two accounts is smart for salary, savings, and emergency purposes, keeping 4–5 active accounts is often a burden. It means:
- More penalties ⚠️
- More charges 💸
- More paperwork 📑
- More stress 😓
- Disclaimer:
- The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.