Savings Bank Accounts
If you’ve switched jobs, you’ll likely have more than one bank account, because new employers ask employees to open salary accounts.
Initially, they’re all zero-balance accounts - but each converts to a regular account once you switch your job.
You will have to maintain minimum balance in each of the non-salary accounts to avoid penalty.
Plus, there are charges levied, even on idle accounts, which cause you to lose money- debit card fee, non-activation fee, SMS charges, etc.
How Many Accounts Should I Hold?
Two A permanent account and a salary account.
This will be linked to all your mutual fund investments, tax filings, home EMI payments and other automated bill payments.
Tax refunds will be easier if linked to your main account. UPI-linked payments can also be made from this account.
This will be a temporary account and you will close it as soon as you leave a job (and open a new one).
Ideally, automate transfers of your salary from this account to your main account and plan your expenses and investments.
The Right Bank Balance
There’s no ideal amount to be maintained - enough to keep you financially stable. And remember, your emergency fund is not to be in your savings account.
It should rather be in a safe liquid fund – that will be encashable within 24 hours.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.