As the majority of banks operating in the modern era provide savings accounts with a variety of differentiating features, many individuals choose to open more than one bank account. Some people don’t make efficient use of their bank accounts, while others don’t even bother trying, whereas some are good at managing them. Anyhow, being aware of the benefits and drawbacks associated with maintaining several savings accounts will assist you in determining whether or not you need more than one account to meet your financial needs. Also, remember that with varying balance requirements in different banks, you should know about the sbi balance check number and Canara Bank Balance Check Number so that you can check it whenever required.
Now let’s take a look at some of the pros as well as cons that come along with maintaining a number of different savings accounts:
Advantages
The Bigger Upper Limit for Withdrawals from ATMs
Because savings bank accounts come with a limit on the number of daily withdrawals from ATMs, increasing the number of savings bank accounts you have will increase your total daily withdrawal limit from ATMs. Consider the following scenario: you only have one savings account, and the maximum amount you can withdraw from an ATM every day is 25,000 rupees. You will be able to withdraw up to Rs. 50,000 from ATMs in a single day if you open a second savings bank account with a limit of Rs. 25,000 per day for ATM withdrawals. All that is required of you is to either keep the withdrawable amount in your secondary account or move the money from your primary account to it using instant transfer technologies such as IMPS, NEFT, UPI, or RTGS. Keeping the amount in your secondary account is the easier option.
Having a greater ATM withdrawal limit enables you to better manage your cash flow, which is especially helpful during bank holidays and other times when you may find yourself in a difficult financial situation. Also, remember to use the SBI Balance Check Number whenever you need to know the account balance.
Additional cash withdrawals at no additional cost
Just like you need to keep a minimum balance in accounts which you can check by using the Canara bank balance check number, the majority of savings bank accounts also have a maximum amount of withdrawals that are permitted each month, and if you go over that number, you will be charged a fee for using an ATM. In most cases, banks would impose a fee of up to Rs 20 per financial transaction and up to Rs 8.5 per non-financial transaction for every transaction that exceeds the free limit.
Those who have a regular need to withdraw cash from ATMs might save money by avoiding the costs that are associated with using ATMs. This is because having multiple savings accounts increases the number of free ATM transactions.
A higher number of free transactions at branch locations
The vast majority of financial institutions impose some kind of cap on the number of free cash withdrawals, cash deposits, checks to clear, and other branch transactions that can be conducted using savings bank accounts. After reaching this threshold, you will be responsible for paying for it. If a person has more than one savings account, they have the ability to spread their transactions among those accounts in order to keep their total number of transactions within the permitted range. You would save money on your banking fees all around if you did this. Moreover, don’t forget to regularly check your available bank balance by utilizing the facility of checking the Canara bank balance check number.
Deals available on debit cards
Besides the feature of getting to know balance by using the sbi balance check number, there is another benefit available. The debit card that is provided alongside savings bank accounts is accompanied by a plethora of enticing offers, such as reward points, discounts, cash backs, and so on. You are able to perform POS and online transactions depending on the offers that are available on the debit cards you have if you hold numerous savings bank accounts at the same bank.
Options available in the event of disruptions
Bank operations have the potential to be disrupted by a wide variety of unavoidable causes, such as hiccups in technology, strikes called by staff unions, and disruptions in the surrounding community. You would be able to access your funds in an emergency even if you were unable to do so through your primary savings account if you had other savings bank accounts under your name. Also, remember that if you frequently use the Canara bank balance check number to check your balance, you can possibly prevent or at least detect a fraud that might have happened, which otherwise you might get to know later if you didn’t check the balance timely.
Disadvantages
Generates low overall returns
It’s possible that you’ll be required to keep a monthly average balance (MAB) (which you can check whether you are maintaining or not through the sbi balance check number), but this will depend on the bank you choose, and the sort of savings account you have. If you do not comply with the MAB requirement, you will be subject to non-maintenance costs of up to 500 rupees each month. Those individuals who have multiple savings accounts may consequently be required to set away a greater quantity of money in order to satisfy the MAB requirements.
Because the interest rates offered by most savings accounts are lower than those offered by returns earned by debt funds, keeping your money in many savings bank accounts can prohibit you from generating better returns. This is because you can’t access your money as easily.
Conclusion
The frequency of your transaction pattern, the magnitude of your transactions, and the necessity for risk hedging should be all factors in your decision to hold numerous savings accounts. If you only make one or two financial transactions a week, you probably do not need to maintain multiple accounts for your finances.
Also, think about closing any savings accounts that aren’t being used or that have features that aren’t very good. You can check the balance before closing through facilities like sbi balance check number and the Canara bank balance check number. This closure can help you avoid any associated costs, such as annual card fees or the opportunity cost of keeping a monthly average amount that results in lower returns, etc. Choose savings accounts that meet your needs and offer an interest rate that is above average in comparison to other options.