Having multiple savings accounts are beneficial for you?
By Anupama Deshpande | July 24, 2019

Savings Account is the most popular type of bank accounts which are opened by almost all the individuals to place their money in safe custody of banks. Savings Account is opened not only for saving of your amount but getting interest on it also. You have the flexibility of deposit your fund to or withdraw your fund from the account based on your requirement. Savings account provides many other facilities such as cheque book, netbanking, ATM/ debit card, fund transfer facility, etc.

Having multiple savings accounts are beneficial for you? Many people open multiple savings accounts. Should you have only one savings account or multiple savings accounts? For making a decision you must first know as to what are the benefits of multiple savings accounts?

Outlined below are the 5 reasons to have multiple savings accounts which support the fact that you should have multiple savings accounts:

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Every savings account gives you a fixed number of free ATM transactions like cash withdrawal, etc. After that specific number, the bank levies transaction charges. If you have more than one savings account, you can have increased number of free ATM transactions.

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Generally, banks allow you to withdraw a maximum of Rs 10,000 in a single transaction from an ATM which is of different bank than the bank in which you have your savings account. Having multiple accounts, you can withdraw more cash when needed.

Suppose the bank in which your salary account is there, offers 3.50% interest rate on savings deposit while another bank is offering you 5% on savings deposit. If you open savings account with another bank too and transfer your funds to that account, you will earn more.

In case you have opened more than one savings account, you will have more numbers of debit cards which you can use on different occasions as per your needs. Many banks provide attractive offers such as discounts, cashbacks, with their debit cards which you can avail.

As you know, every depositor of a bank is insured for up to Rs 1 lakh under Deposit Insurance and Credit Guarantee Corporation (DICGC) scheme. This includes the deposits in all types of accounts savings, current, fixed and recurring deposits held by you as a retailer with a bank. If you have multiple accounts, you will get deposit insurance cover for all such accounts of Rs 1 lakh each separately.

While abovementioned points highlight the benefits of having multiple savings accounts, still there are some aspects which go against having a number of savings accounts. You will need to maintain minimum balance in each of the savings accounts that you have. You will need to manage all the savings account properly and keep all of them active. You will have to remember the details such as PIN and netbanking passwords of all the accounts.

To open and maintain multiple savings accounts have both the advantages and disadvantages and it depends on you whether to open multiple savings accounts or not. If you find more advantages in opening more than one account then you can do so.