Advantages Of Having Multiple Savings Accounts

by Shashank Bhaskar Finance Adviser

Most people, especially those living in urban cities have more than one savings account today. These accounts are easy to open and come with several great facilities which include net banking doorstep banking and so on. While some people prefer to open an account in a bank that offers high interest rates, others prefer banks that allow them to maintain very low monthly balances. Having more than one savings account does come with its own advantages. They are as under

More free transactions at ATMs: Most banks offer only 3-4 free ATM transactions with your bank account. Many people avoid keeping a lot of money and withdraw from the ATM only as per their needs. Bank customers have to pay a fee for any financial or non-financial transaction after they exhaust the free limit. In such cases, having multiple saving accounts increase the number of ATM transactions you can do per month. With multiple accounts, you can also distribute your transactions across accounts and contain them within your free limit, thus reducing any additional banking costs.

Increased cash withdrawal limits: The upper limit of cash withdrawals with such accounts is also not that high with many banks, especially in cases of basic accounts. Banks define a set amount that can be withdrawn from your account in a day. In cases of emergencies like accidental hospitalization or urgent need of funds, you cannot withdraw any additional amounts from the ATM and have to spend several hours in the bank. When you have more than one savings account, your daily withdrawal limit automatically increases and you can arrange for large amounts of cash at any time from your different accounts.

Provide alternatives during disruptions: Remember demonetization when you could withdraw only ₹4000 from your account at a time? In such cases, an individual, with say 3 saving accounts, could withdraw ₹ 12,000, because of the additional accounts he possessed. While demonetization is an extraordinary circumstance, bank strikes, local disturbances, technical glitches are common incidents that cause disruptions. With multiple accounts, you can at least make transactions from one bank if another’s servers are down.

You can earn money from interests: Every bank has a quarterly, half-yearly or annual pay-out strategy for the money that sits in your savings account, whether you conduct any transactions or not. While most nationalized and private banks pay an interest of 3-5% to 4% on your savings account, premium private banks such as Kotak Mahindra Bank and Digi Bank by DGS offer you 6% and 7% interest respectively on your savings. As such, you earn interests on your savings accounts in multiple banks.

You get good debit card offers: Almost all debit cards that you get along with your account come with attractive offers that earn you reward points, cash back and discounts. The more transactions you make using your different debit cards, the more reward points you accumulate, which you can use for online shopping or purchasing coupons of shopping stores, restaurants etc.

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About Shashank Bhaskar Innovator   Finance Adviser

14 connections, 1 recommendations, 82 honor points.
Joined APSense since, August 9th, 2018, From Mumbai, India.

Created on Aug 10th 2018 01:25. Viewed 845 times.


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