Most banks now provide a savings account with attractive features and this mostly makes many individuals open more than a single account. Few of the attractive features of savings account include the option to open bank account online at zero MAB (minimum amount balance), higher interest rate on parking a specific defined balance, easy accessibility to mobile and internet banking etc. Using multiple savings accounts effectively helps avail various benefits. Here are 6 major benefits:
- Enhanced ATM withdrawal limit
As savings account whether regular or online bank account come with a limit on their daily withdrawal, holding multiple savings bank accounts would enhance the holders overall daily withdrawal limit. For example, suppose you have only one savings account with a daily limit on withdrawal of up to Rs 20,000, opening another account with a daily withdrawal limit equaling Rs 30,000, would help enhance your daily withdrawal limit to up to Rs 50,000. Note that having a higher daily withdrawal limit assists you to manage your cash flow in a better way, particularly in times of financial emergencies and bank holidays.
- Higher ATM transactions at zero cost
Most of the savings accounts have set an upper limit in respect to the withdrawal numbers permitted each month, beyond which the transaction through ATM becomes chargeable. As holding multiple savings accounts enhances the free ATM transaction frequencies, those who frequently withdraw cash can save some money by avoiding such ATM charges.
- Higher deposit insurance cover
As per the DICGC (Deposit Insurance & Credit Guarantee Corporation), RBI’s subsidiary, bank deposits are completely insured for up to Rs 5 lakh per bank per depositor in event of bank failure. It covers both the principal and interest constituents of FDs, RDs, savings accounts and current accounts. Thus, parking in multiple banks means you would avail separate insurance cover equaling Rs 5 lakh for accounts in each bank.
- Higher free branch transactions
Many banks hold an upper limit on the free cash withdrawals, cheque clearance, cash deposit and various other branch transactions conducted through savings accounts. Those surpassing this limit are charged with a fee. Thus, with multiple savings bank accounts, one can simply spread their transactions across accounts to contain within the free limit. Opting for this route helps lower the overall banking expenses.
- Debit card offers
Debit card provided along with a savings account come with various attractive offers such as reward points, cash backs, discounts etc. Having multiple savings accounts allows one to make online and POS transactions based on the available offers on debit cards.
- Alternative in situation of bank operation disruption
Bank operations sometimes are impacted due to various unavoidable reasons like strike by the employee unions, local disturbances, and technical glitches. Having multiple savings accounts allow depositors to access the funds in events when they are unable to do so through their primary account.
The major reason to open saving account online or through a bank visit is to encourage individuals to park their surplus funds to meet their short-term goals or use it in times of financial emergencies. Apart from this, savings accounts also come with various benefits in the form of complimentary insurance on debit card, discount on locker rent, preferential rates on various loans, cash back on spend through debit card etc. Thus, having multiple savings accounts not just helps avail higher benefits but also their proper management allows their holders save money.