Too many bank accounts can harm your money
- Maintaining minimum balance and tracking all bank accounts can be cumbersome
- The more bank accounts you hold, the more money you keep locked in due to minimum balance requirements
Gurugram-based Shrinidhi Shetty, 35, has six bank accounts registered in his name. He opened these accounts over a course of time for various reasons. “One account was for my demat account, two for home loans, three were salary accounts which I had to open each time I changed jobs and the sixth one was to facilitate the processing of my Aadhaar," said Shrinidhi, a petroleum engineer. All six bank accounts have been serving some purpose but Shrinidhi has been planning to close at least three of them for a while now. “One of the accounts I want to close offers a higher interest rates on fixed deposits while the other offers a better banking experience in terms of technology and ease. The third account (salary account) which also has very low activity was for one of my previous jobs," said Shrinidhi. He has about ₹25,000-30,000 parked in these accounts in order to maintain the minimum balance requirement. Could he have made better use of this money?
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