If you have savings accounts in more than a bank, then this article is for you! If you have a savings bank account and you don’t use it, then you need to close the account that is not in use. Many financial advisors believe that it is practical to close bank accounts that you do not use much. There could be many disadvantages of ideal accounts or that are not in use. When we change jobs or move from one city to another for jobs or any other purposes, the number of saving accounts increases.
Disadvantages of Having an Excessive Savings Account
If you have excessive savings bank account that not in use, then you must know about certain disadvantages.
Maintain Minimum Balance
The very first disadvantage is you are required to maintain the minimum balance for each active savings account. Being a customer, you must keep at least the minimum monthly average balance for each account. In case, if you fail to do this then the bank deducts the money from the account as per the policy. This rule is applied to customers of the entire bank. In this situation, there are two options for you, you may either maintain the minimum balance or get the money deducted.
Pay Debit Card Charges
It is mandatory to pay debit card fees even if you do not use your account. Such cost can be more than the interest you get from the bank against your saving account. It is said that no separate charges are there for opening a bank account, but a certain amount of fee is required to pay for debit cards. Generally, such charges range from Rs 100 to Rs 1000 per year. Additionally, few banks also charge Rs 30 per quarter for sending SMS.
Account Closure Risk
The next disadvantage of a savings account that is not in use is the risk of account closure. For instance; if you do not perform any transaction for 12 consecutive months, then the bank is authorised to consider your account as an active account and mark it as a dormant account. It will restrict you to use ATM transactions, net banking, or phone banking.
These were the most common disadvantages of not in use saving bank account that customers may face if they have ideal savings bank accounts. To know more, consult with your bank!