A savings account is a type of money account that you can open with a bank. Savings bank accounts help us to keep our money safe and liquidate it when needed. However, with so many banks, customers can get confused as to which bank account is best for them. For that, you need to do research work and compare banks. You can now open more than one savings account to get maximum benefits.
Are you allowed to open more than one savings account?
Amit Gupta, MD, SAG Infotech, says that people in India can open and maintain multiple savings accounts in different banks.
Although how many has no limits savings accounts While you may have, it is advisable not to have more than three accounts per person, as managing multiple accounts can be difficult, said Amit Gupta.
“There is no fixed number of bank accounts you should have as it completely depends on your financial goals. I believe that having multiple bank accounts and having each bank account with its own objectives can really help you achieve your specific goals. Hence, it will be effective in giving more clarity and seeing more wins than before. So, having just more than one account is definitely a smart move,” said Saif Ahmed Khan, CEO, Luhaf Digitech.
Multiple accounts can help you set aside expenses for savings and household expenses.
“I have a joint account with my wife and another account with my child. This way I can allocate money for travel expenses and my child’s annual expenses. It helps you keep your finances tidy while getting the full benefits of banking,” said Tarundeep Singh, Chief Development Officer, 23Watts.
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 child’s education, emergency fund, monthly expenses, etc. Having separate accounts for each goal will make it easier for you to maintain and track your savings for different goals. It will also reduce the chances of mis-spending your savings.
2) Automatic saving for goals: After setting up separate accounts for different goals, you can automate the transfer of funds from your main account to other accounts on a defined basis (for example, on the 1st of every month) so that it Be sure that you only spend when you have saved for your goals.
3) This will make it easier to manage, monitor and keep track of your finances while saving for various goals.
4) Debit cards have a specific withdrawal limit and you may not be allowed to withdraw a lot in case of an emergency. Different savings accounts may provide you with multiple debit cards, which you can use in such cases.
insurance cover
Chartered Accountant Rajendra Wadhwa says that the total insurance cover in the worst case is now 5 lakh per bank account as against 1 lakh earlier. So, you are mitigating the risk of bad credit in case the bank goes bankrupt.
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