Active Stocks
Tue Apr 23 2024 15:59:47
  1. Tata Steel share price
  2. 161.10 -0.46%
  1. Tata Motors share price
  2. 986.60 1.34%
  1. NTPC share price
  2. 346.90 1.12%
  1. Bharti Airtel share price
  2. 1,342.30 3.38%
  1. HDFC Bank share price
  2. 1,507.20 -0.34%
Business News/ Money / Personal Finance/  Why opening multiple savings bank accounts is beneficial for you
BackBack

Why opening multiple savings bank accounts is beneficial for you

Though there is no limit to how many savings accounts you can have, it is advised to have no more than three accounts per person

To reap maximum benefits, you can now open more than one savings account.Premium
To reap maximum benefits, you can now open more than one savings account.

A savings account is a type of money account that you can open with a bank. Savings bank accounts help us keep our money safe and liquidate it when needed. Although, with so many banks , customers might get confused as to which bank account is best for them. For that, you need to do research work and compare the banks. To reap maximum benefits,  you can now open more than one savings account. 

Are you allowed to open more than one savings account?

Amit Gupta, MD, SAG Infotech says people in India can open and maintain multiple savings accounts with different banks.

Though there is no limit to how many savings accounts you can have, it is advised to have no more than three accounts per person, for it can be difficult to manage many accounts, Amit Gupta said.

“There is no fixed number of how many bank accounts you should have as it totally depends on YOUR FINANCIAL GOALS. I believe that having multiple bank accounts and positioning each bank account with your objectives can help you really acuminate in achieving your specific goals. Hence, it will be effective in giving greater clarity and seeing more wins than you’ve seen before. So, having more than just one account is definitely a smart move," said Saif Ahmad Khan, CEO at Luhaif Digitech

Multiple accounts can help you separate spending money for savings and household expenditures. 

“I have joint accounts with my wife and another account with my child. This way I can allot money for travel expenditures and for my child's yearly spending. It helps in keeping your finances organised while getting the full benefits of banking," sais Tarundeep Singh, Chief Growth Officer at The 23 Watts.

Amit Gupta explains why having multiple savings accounts can be a good thing for you:

1) Efficient management of finances: You may have different financial goals, such as the child’s education, emergency fund, monthly expenses, and so on. Having separate accounts for each goal will make it easy for you to maintain and track your savings for different goals. It will also reduce the chances of misspending your savings.

2) Automated saving for goals: After setting up different accounts for different goals, you can also automate the transfer of funds from your main account to other accounts on a scheduled basis (on the 1st of every month, for instance) to ensure you only spend after you have saved for your goals.

3) This will make it easy to manage, monitor and keep track of your finances while saving for various goals.

4) A debit card has a specific withdrawal limit and might not allow you to withdraw a lot of money in case of emergencies. Different savings accounts can offer you multiple debit cards, which you can use in such cases.

Insurance cover

Chartered Accountant Rajender Wadhwa says total insurance cover in the worst case is 5 lakh per bank account now a days which was 1 lakh earlier. So, you are reducing the risk of bad debts in the case bankruptcy of bank.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

ABOUT THE AUTHOR
Sangeeta Ojha
A business media enthusiast. Writes on personal finance, business and banking.
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 08 Sep 2022, 10:11 AM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App