The savings account is considered to be the basic banking service provided by any bank wherein the customer can deposit the funds and withdraw as and when the need arises. However, there is a myth in the minds of people that the more the funds, the more are the number of accounts. In reality, having multiple savings accounts has more to do with an individual’s savings, personal preferences and requirements.
There are actually quite a few benefits of opening multiple savings accounts. Let us have a look how multiple savings account can bring about a positive change in your financial outlook:
1. Helps You Achieve Your Financial Goals
Having multiple savings accounts in place is a good thing and if you have quite a few financial goals. Keeping money in multiple savings accounts helps you allocate and manage your funds for a particular purpose. You can easily gain a fair idea about how much is required for a particular goal and accordingly, you can manage your savings.
Also, prestigious banks such as IDFC FIRST Bank are offering different types of savings account products to take care of different financial needs of the individuals. Some savings accounts feature zero savings account minimum balance, whereas some require a minimum balance of say, Rs. 10,000 or Rs. 20,000.
2. Reduces Risk
When you make deposits in your savings account, the amount comes with an insurance cover of DICGC (Deposit Insurance and Credit Guarantee Corporation). Thus, if the individual possesses larger funds, it is better to diversify the amount into multiple accounts. With this, the customer can avail more protection from the bank and minimize the risk.
3. Tax Saving
As per the taxation rules prevailing in the country, the TDS (Tax deducted at source) is deducted if the accumulated interest income is more than INR 10,000 per account. Depositing money in different accounts will lead to the non-deduction of TDS. Thus, it is better to avoid putting all the funds in a single account and save yourself from the tax liability.
4. Inculcates a Habit of Savings
With multiple savings accounts, you tend to avoid building a huge balance in one account which runs the chances of misspending the same. While this will help you track your goals better it will also ensure that all the accounts would have at least the minimum account that can come in handy during an emergency.
5. Banking Perks
With the various features offered by banks these days, managing multiple savings accounts has become quite easy. Also, holding an account with prominent banks such as IDFC FIRST Bank and maintaining good customer relationships can help the individual avail of a home loan without much documentation and with relative ease. You can go through the IDFC home loan reviews to get more information on this. Moreover, each bank offers different benefits and having multiple accounts can help you avail all the diverse benefits.
Final thoughts
A savings account is a tool to manage funds and is essential for leading a good financial life in the future. With multiple savings accounts at your disposal, you surely gain control over the finances.