People often have more than three or four bank accounts for various reasons. However, unused and unattended accounts must be closed for better financial health. Following are some reasons why an individual should stick to one or two bank accounts and not too many:
Need to maintain minimum balance in each account
Most of the banks need the customers to maintain minimum balance which can range anywhere between Rs 5000 to Rs 20000. Failing to do so would levy penalty. This is unnecessary expense for an individual.
Chances to fill ITR forms incorrectly
At the time of filing income tax returns, it would be headache if an individual is holding too many bank accounts. It may happen that one miss out to report earnings and may end up filling ITR form incorrectly.
Paying bank charges unnecessarily
Most of the bank accounts levy annual charges for holding debit cards, credit cards, internet services, mobile services etc.
If bank accounts are unused for a long time with large balances, they might attract unwanted attention. Fraudsters and Scammers may focus on such accounts and try to steal the money.