Need a suggestion to optimize number of bank accounts

POSTED BY Saravanan ON March 18, 2013 10:26 am COMMENTS (6)

Hi, I have 5 bank accounts and need your inputs to optimize them.

1. Salary account – Private Bank

2. Saving+Trading account – Private Bank (Soled all mis-buy MF and ESOP stocks, Now only has an REC bond). Also have credit card from the same bank.

3. Saving account (Prev Salary Account) –  Private Bank – with Auto Sweep (using to park emergency fund)

4. Nationalised Bank linked with PPF account

5. Saving Account – Nationalised Bank- (Linked with Aadhar) – In Native place, Openned a 3 months back.

All these accounts are with different banks and except 5 other accounts are 4-9 years old. My main dilema is that should it matter how long we hold the account when it comes to some financial transcation with the bank in future like loan etc. Please advise.

6 replies on this article “Need a suggestion to optimize number of bank accounts”

  1. Dear Sarvanan, please check with the customer care of the respective banks. Although you can withdraw your own money & let the account remain empty but to avoid any last minute surprise please keep cash while visiting the branch for account closure.



  2. Saravanan says:

    One more Question: To close an account, Can I withdraw all money and give a letter to the bank requesting for closure – Surrendering the AM Card and Unused Cheque book or Should keep some money it as much as Minumum balance and ask for a cheque after closure?

  3. Saravanan says:

    Thanks Ashul for your suggestion. It is very useful. I use netbanking facilies to the maximum including IMPS. The reason I had mentioned was to deposit cash to my account which they would have borrowed etc.

    My Salary account provider does provide a demat, but not a trading account. Anyways I am not an active trader in stocks, so trading account might not be necessary for me. Other than my company ESOP I have never bought any stocks. For Mutual Fund, I can use fundsindia kind of service.

    Thanks for helping to get some calrity.

  4. Dear Sarvanan, you may consolidate your 3 pvt. banks account in the favor of current salary account. Avail sweeping FD facility there. Open a linked demat & trading account there. Transfer REC bonds from old account to new one & close that old demat + trading account.

    Regarding money transfer or deposit into native branch, why are you not using netbanking?



  5. Saravanan says:

    Thanks Ashal. Account 1,2 & 3 are with different banks. Yes, that autosweep account can be closed. I have no dependency. The demat account is with ICICI can that be linked with another bank? Can the demat exist without assocoated saving account?

    5th Account I have openned for 2 reasons – a) To link with Aadhar, as address in Adhar is native address. b) To deposit money to my account from native. If the account is in oustation Rs.20/10,000 is charged.

  6. Dear Sarvanan, Are the pvt. bank in case of 1,2 & 3 are same or different? The autosweep facility can be availed on your existing salary account or PSU account (PPF linked) also.

    The REC bond linked SB account can be closed as well as old salary account. For REC bond, please link your demat/trading account with your existing salary account.

    For what reasons, you opened the 5th account in your native?

    At the time of loan application, not all accounts ‘ll be looked upon. The bank in question ‘ll only look for your association with it in terms of the SB account you are holding there. But this oldness of account ‘ll not be a sole criteria to decide your loan eligibility.



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