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The Pros and Cons of Having Multiple Savings Accounts
Posted on Wednesday, November 9th, 2022 | By IndusInd Bank
The battle between one or multiple savings accounts isn’t new. While some experts recommend having basic savings account for hassle-free management of your finances, others strongly advocate having multiple accounts to manage different financial goals effectively.
But do you need to have multiple savings accounts? If you believe multiple accounts are for people with a lot of money, you’re wrong. In this blog, we’ll share a list of the pros and cons of having multiple accounts to help you make an informed decision.
Pros of Having Multiple Savings Accounts
1. Meet Multiple Financial Goals
Having multiple bank accounts is excellent if you have multiple financial goals. They help you easily segregate your finances and better control your savings.
When you have more than one account, you can break up your goals and track how much money you’re saving for them. For example, you can have separate accounts for your salary, expenses, vacations, emergency fund, etc. This way, you can track your progress and achieve your financial goals quickly.
2. Enjoy Multiple Benefits
While opening a new account, it’s natural to look for the best services. You might want high savings account interest rates, excellent customer support, low fees, etc. But finding a lender that ticks off all these requirements can be difficult.
Having more than one savings account here will help you enjoy multiple perks. For example, one lender might offer a high-interest rate but no digital services. Meanwhile, another lender might offer lower interest rates but allow you to manage your account digitally on the go. Having an account with both of these lenders will help you enjoy the different benefits of savings accounts.
3. Reduce Dependency on One Bank
Have you ever struggled to access your account because the bank server is down? In today’s digital era, banks rely heavily on technology to help you access your savings account. Even a minor technical glitch can keep you waiting for hours. In such situations, if you have several accounts, you can easily transact using your other accounts. This reduces your dependency on a single lender and ensures your work isn’t hampered.
Cons of Having Multiple Savings Accounts
1. Meeting the Minimum Balance Requirement
Most banks offer minimum balance savings accounts. If you don’t, you’ll have to bear the non-maintenance charge. While this amount is typically low, having many accounts can tie up a significant amount in your bank.
2. Keeping Track of All Accounts
Keeping track of a number of accounts can be confusing. Besides meeting the minimum balance requirement for each of them, you also need to ensure that your contact information is updated in all the banks so that you make the best use of their services. Not to mention, keeping track of transactions is much harder when you have multiple accounts.
3. Dormancy of Accounts
If you have many accounts, you might not be able to manage all of them regularly. And as per the RBI guidelines, if you don’t use your account for more than two years, the bank will change its status from ‘Active’ to ‘Dormant’. As a result, any services related to this account will stop, and you might have to pay penalties or charges.
Should You Have Multiple Savings Accounts?
While there are many advantages of savings accounts with more than one lender, it also comes with their fair share of drawbacks. In the end, you must evaluate your requirements and analyse these pros and cons to make an informed decision.
If you’re searching for the best interest rates on savings account, amazing features, a 100% online and paperless process, and maximum customisation, then our savings account is just for you. Open a savings account online within minutes from the comfort of your home today.
Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.
