Should you have more than one bank account?

For most people, it is essential to have a bank account today because it comes with so many benefits and facilities. However, how many bank accounts should you have? Is one bank account enough or should you have more than one? While there is no fixed rule, the number of bank accounts a person should have depends on various factors, including one’s financial goals, convenience, and personal preferences.

According to financial experts, every individual should have at least one bank account. This account serves as the foundation for your financial transactions. It is typically linked to your salary, and you use it for regular banking activities such as salary deposits, bill payments, and daily expenses. The primary bank account should be easily accessible and provide services like online banking, debit cards, and mobile banking apps to facilitate seamless transactions.

Let’s understand how to determine the ideal number of bank accounts for your needs.

Savings Account

Apart from the primary account, having a separate savings account can be beneficial. A savings account is ideal for managing your personal finances and accumulating funds for future needs. It offers features like interest on deposits, ATM access, and the ability to set up automatic transfers.

Adhil Shetty, CEO, Bankbazaar.com, says, “A savings account provides a clear demarcation between your everyday expenses and long-term savings goals, helping you manage your money more effectively.”

Also Read: How to Grow Your Savings: A guide to financial stability

Joint Account

If you have a spouse or a family member with whom you share financial responsibilities, a joint account can be advantageous. It allows both account holders to manage finances collaboratively, making it easier to track shared expenses, pay bills, and save for common goals. A joint account can simplify financial management and enhance transparency within the family.

Salary Account

A salary account comes with specific benefits such as zero balance requirements, higher transaction limits, and special offers. While a salary account serves the purpose of receiving your monthly income, it may not necessarily be your primary bank account. However, if your employer provides additional perks or benefits, it can be beneficial to keep a salary account separate from your primary account.

Investment Account

For individuals interested in investing, having a separate investment account can be helpful. This account can be linked to your primary account, allowing you to transfer funds easily and manage your investments efficiently. It can be used for activities such as buying mutual funds, stocks, or other investment instruments. Having a dedicated investment account helps you track your investments separately and assess their performance accurately.

NRI Account

If you are an NRI (Non-Resident Indian) or planning to become one, having an NRI account is essential. NRI accounts offer specific features and benefits designed for individuals residing abroad. These accounts allow you to manage your foreign income, repatriate funds, and make transactions in multiple currencies. Having an NRI account ensures that you can easily manage your finances while residing outside of India.

Also Read: Smart tips for building a healthy financial relationship with your life partner

While the above types of bank accounts cover the most common scenarios, the actual number of accounts you should have depends on your individual requirements.

Shetty adds, “Some individuals may find it sufficient to have just one or two accounts, while others may benefit from having multiple accounts to cater to specific needs. It totally depends on your requirements and how well you can manage multiple accounts and funds. Also, you must know the charges and minimum balance requirements to avoid penalties.”

Keep in mind that having too many bank accounts can also lead to unnecessary complications, such as difficulty in tracking transactions and maintaining minimum balances. It is, therefore, advisable to strike a balance between convenience and practicality.

Additionally, it is important to choose reputable banks that offer reliable services and have a wide network of ATMs and branches. Research the features, charges, and customer reviews before opening an account to ensure hassle-free services.