Do I need to maintaing multiple Savings account?

POSTED BY Sunil Kumar ON April 2, 2011 6:37 pm COMMENTS (6)

Hello All,

I am having multiple bank accounts and its becoming challenging for me to maintain minimum bank balance.  Please post the pros and the cons of having multiple SB accounts(ofcourse its with different banks.)  What criteria, should I be using to close the bank account?

Looking foward for lots of responses!


Sunil Kumar

6 replies on this article “Do I need to maintaing multiple Savings account?”

  1. ashal jauhari says:

    Dear Sunil, For your liquidity needs I have a solution, Invest your amount in Reliance REgular Saving Debt fund. You ‘ll get a HDFC Bank ATM card & you may withdraw your money from the fund using your card in case of need. I think this way the question of ‘Security’ or ‘Trust’ with your bank ‘ll not arise.

    A lot of people don’t like ICICI Bank or it’s subsidiaries but I have not found any issue with these people for my own transactions & my relationship with ICICI has been a smooth ride. Sample this –

    A home loan prepaid before time
    A Car loan paid up in normal term
    A Demat account with ICICI Direct
    Term plans from ICICI Prudential Life

    I’m not recommending that every body should have a bank account with ICICI but I’m merely sharing my personal experience with ICICI.



  2. Sunil Kumar says:

    Thanks for all your responses. I hear from most of you that have less bank accounts. However, Anoop in the link posted by Ajay states the below. Looks like, we need invest in different banks, to avoid being on loss due to bankruptcy. What is your view,as how many number of bank accounts one must have? Is it three out of which one being a nationalised bank?

    As you said “trust”, its hard to have a single account in 1 bank and load all your life savings into one bank. Remember the thing that happened to lehmann brothers, there were so many who were banking with lehmann brothers for more than a 2 decades and all their investments were gone within a week. All you would do is to convert the savings account into FD’s in different banks and keep part of your savings in each account. Trusting one bank though you have been banking with them for a long time would not be a wide decision, especially if the economy goes on a downtrend.

  3. ashal jauhari says:

    Dear Sunil, How much is too much? it’s a personal question but for a general view I think 2 or may be 3 accounts are more than enough. Take my own case –

    My salary account is a PSU bank – Indian Overseas bank. Off late it has started net banking etc. but It’s meant for salary credit only as my employer has tie up with this bank only.

    My Demat & other investment related account is with a private bank – ICICI.

    To maximize my home loan & credit card benefit, the last account is with SBI.

    You may make your own choice based upon your own requirements & comfort level.



    1. rakesh says:


      Very well explained. Thanks for sharing your personal info.


  4. Chaitanya says:

    I think having 1 public sector bank like sbi & one private sector bank like hdfc, icici is enough.
    In my view the things to consider in today’s banking is definetely the comfort of banking coupled with good customer service and trustable bank.

    1) Check for host of online facilities available and useful to your needs (opening fd’s, tranfering funds, mobile banking……..)
    2) The interest rates they give (for ex., sbi gives > interest than icici than hdfc)
    3) Segregate one bank account purely for day to day/monthly needs & another for all mf’s, equities, home loans if any…
    4) Also choosing the larger banks gives you an advantage of more ATM’s or branches across the cities in India or internationally too…

    So coupled with all above options & filtering out on lowest minimum balance maintenance would be ideal….

  5. Ajay says:

    Sunil – I found some interesting discussions here

    May be this and all linked articles on will help you to some extent

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