Need Multiple Savings Account? Here Where to Bank

Online Banking has made it convenient for customers to open multiple savings account from the comfort of their homes.

Reasons to Have Multiple Savings Accounts

• To track your progress in different types of saving like home, car, travel, education.
• Reduce the chance of overspending or misspending.
• Bonus by banks to open new accounts.
• Use in the urgency of cash. Debit Cards linked to your Savings Accounts have a per-day limit on fund withdrawal, so multiple savings accounts will help to overcome the urgent need for cash.

Banks for Multiple Savings Accounts

Tips for maintaining Multiple Savings Account

1. Have a separate Salary Account.
2. Have a separate Savings Account for Emergency Funds.
3. Have different Accounts for different financial goals – to buy a car, home, etc.
4. Open account with banks having Zero Balance Payment Facility.
5. Get Credit cards that have more benefits and keep a separate credit card for emergencies.

Guide to Open Savings Account Online – 

The basic steps to open a Savings Account online in any Bank are as follow:

• Compare the savings account rate of interest of various banks and all the bank products provided by a particular bank.
• Select the Bank and Bank Products which suit you the best.
• Visit the bank’s website.
• Click on Apply for Savings Account.
• Fill in the application form and enter your name, address, date of birth, and other various details like Aadhaar Card No. and PAN Card.
• Attach all the documents that are required like Aadhar, Voter ID, PAN Card or any other relevant document which fulfills the KYC requirements.
• On submission of the documents, the bank or financial institution will start the verification process.
• If all the documents and information is authentic, approval will be granted; the account will be activated within 3-5 working days.
• You will receive mail and SMS from the bank when your account is activated.

The eligibility criteria to open a savings bank account is different for different banks and different bank products. The common criteria are mentioned below –

• Resident Individuals
• Foreign nationals residing in India
• Non-Resident Indians
• Should be at least 18 years old
• Minor accounts can be jointly opened with a parent or guardian.

Drawbacks of having multiple Savings Account – 

• Minimum balance – Having multiple savings accounts is easy but maintaining the balance across all the accounts is difficult. Some banks don’t offer zero balance payments to all customers.
• Loss of interest – Banks offers a high-interest rate on a high amount of deposits. When an individual has multiple accounts, he/she tends to distribute money in small amounts. Hence there is a loss of interest. 
• Complications in auto-transfers – The option of automatic transfer can be complicated if all the deposits are made from one paycheck. It will be a difficult job to keep track of all the accounts and the amount deposited in them.
• Higher fee – Some banks charge a higher fee on accounts, especially when there is a low balance in the account.