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
|Bank name||Interest Rate||Average Monthly Balance (AMB)|
|Kotak Mahindra Bank||3.50% – 4.00%||0/2000/3000/5000/10000/20000|
|ICICI Bank||3.00% – 3.50%||0/1000/2000/2500/5000/10000|
|HDFC Bank||3.00% – 3.50%||0/2500/5000/10000/25000|
|Axis Bank||3.50% – 4.85%||0/10000/25000/100000|
|IDFC Bank||2.75% – 4.50%||25000|
|DBS||3.00% – 4.00%||0/5000|
|Standard Chartered Bank||0.50% – 3.25%||25,000|
|Bandhan Bank||3.00% – 3.50%||0/2000/5000/25000/100000|
|Bank Of Baroda||2.75% – 3.20%||0/5/1000|
|Citibank||3.25% – 4.00%||0/25000|
|IDBI Bank||3.00% – 3.50%||500/2500/5000/10000|
|AU Small Finance Bank||3.50% – 7.00%||0/5000|
|Jana Small Finance Bank||3.50% – 7.25%||0/2500/5000|
|ESAF Small Finance Bank||4.00% – 7.00%||0/100/1000/10000|
Tips for maintaining Multiple Savings Account
- Have a separate Salary Account.
- Have a separate Savings Account for Emergency Funds.
- Have different Accounts for different financial goals – to buy a car, home, etc.
- Open account with banks having Zero Balance Payment Facility.
- 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.