Having multiple savings Bank accounts in India
India is a country that allows having multiple savings accounts. There are some restrictions in some foreign countries as to how many banks accounts a person can hold. I don't remember exactly but I think there are also countries that allow people to have only one bank account. In India, a person can have accounts in more than one bank. I personally have accounts in 5 different banks, each one for a different purpose.
Don't think that I'm a big guy or I have huge funds split up in all those bank accounts. I hardly maintain the minimum balance in all those accounts. I opened each one of those accounts for a reason and when the need was over, I was lazy to close those accounts. That's why I'm still having so many accounts. It is not a pleasant experience because I still have to maintain a minimum balance in all those accounts which is a waste. Maintenance is the biggest pain when it comes to bank accounts.
Some banks also sell my data to others where people call me asking if I want credit cards or if I would be interested in taking a personal loan or Home loan. It is so annoying but we cannot do much about it. There is no strong law in India that says that banks should not be selling our data to others. Even if the banks are not selling, there are always ways to get customer data and that's how agencies call us and force us towards getting a personal loan or insurance.
When I say multiple bank accounts, it is not just me but there are so many people having more than one bank account. I personally think it is okay to have multiple bank accounts as long as we can manage them by ourselves. There are also people in India who don't have even a single bank account. We can see both things in India. People still use cash transactions and they find it comfortable. That's why efforts are being made to digitalize cash transactions.
As I said maintaining each and every account is a big pain. We have to maintain a minimum balance of 10k Rupees in each version we hold. The interest rates on the SB accounts are also not very great and there are also Annual Maintenance Charges in the bank accounts, so more than getting the interest from the funds we hold, we might end up paying the annual maintenance charges. I'm thinking of closing all my additional accounts and just maintaining one or a maximum of 2 accounts. This way I don't have to worry more about maintaining my accounts or passwords.
There are also advantages to having multiple bank accounts. The main advantage is the possibility to have each one assigned for each particular task. Our full-time job income can be in one account and other income can be in another account and our loans and investments can be maintained in another account. This is how I have been making use of my multiple bank accounts.
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