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Holistic investment planners, financial planning Chennai, Private wealth management Chennai

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Have multiple bank accounts.How does it affect you

Have Multiple Bank Accounts…? How does It Affect You and How to Come Out of That Mess?

by Holistic Leave a Comment | Filed Under: Wealth Management

Earned your first salary? Deposit it in the bank.

Need a loan? Go to the bank.

Storing your valuables? The bank is there for you.

Banks have become synonymous with money in the sense that the average layman depends on the bank for all his money-related needs.

The common man rarely ventures into alternatives other than banking products. One reason for this is that banks provide a simple and easy way to deal with your finances. With that said, there are some glaring issues that need to be addressed. Given the easy set it and forget it nature of banking products there is a high chance of going overboard with it.

A Case in Point

Naveen is an IT professional working in a high profile tech firm. He earns a fat paycheck. He has invested his money in multiple bank accounts and fixed deposits. Naveen wants to diversify his financial portfolio and has assigned a different purpose for each account.

Naveen is married and has two kids to take care of. His wife is a homemaker. Naveen does not share details of his financial portfolio with his wife as he thinks she won’t understand. Naveen is a risk-averse individual and wants to play it safe by restricting his portfolio to banking products.

All of his accounts and FDs are in his name with his wife being the nominee. Naveen spends most of his time in office and rarely has time to keep track of all his FDs.

Now let us list the consequences he and his family have to face with this setup.

  • Naveen has to renew each of his FDs in time or he will get no interest on them any further, and considering the huge number of FDs he has is a complicated process for which he doesn’t have time.
  • He has to maintain a minimum balance in all his accounts, which if he fails to do, he will end with penalties.
  • The more minimum balances he has to maintain, the more he loses out on investing that amount in mutual funds and FDs.
  • He also has to keep track of his recurring deposits.
  • Also, he has to update his passbooks, keep track of his cheques, and update his net banking passwords regularly.
  • He has to deal with multiple debit cards and has to remember their different PINs.
  • He has to go to each bank every year to get a TDS certificate and do the paperwork to keep track of his taxes.
  • If he doesn’t keep track of or use all of his accounts, there is a risk of the bank making his account dormant.
  • He has to pay service charges for using all the debit cards and bank ATMs he uses.
  • If he is using multiple credit cards, he has the hassle of maintaining a credit score in each one of them, which can adversely affect his ability to secure loans.
  • The real kicker will come when Naveen suddenly passes away in an accident or due to health complications. His family would then have to run helter-skelter filling forms and doing the paperwork to legally claim of all his accounts and FDs.

The Sad Reality

Many individuals keep creating account after account, and while they may be using just one or two accounts for all their purposes, the rest of them go dormant. These accounts don’t see any activity for years together.

    1. Usually, this is because of their hectic lifestyle that gives little time for them to maintain all these accounts. This ends up in mangled up finances and plenty of maintenance that one hardly can sustain.
    2. Transmission is the biggest issue that will nag your family after your death. You definitely don’t want your spouse or your children to run pillar to post filling forms to claim all your accounts and FDs.
    3. If you are in a government job and get transferred to different cities after every few years, you’ll have to keep shifting your bank branches. That would take a lot of time and effort from your side.
    4. Some people just leave the accounts created in their previous city of residence unclosed. These accounts become dormant. They forget about these dormant accounts. These dormant accounts stay there without any life or activity.
    5. Another common trend is investing in many small amount FDs to save TDS, but there is little awareness that legally they will still have to pay tax on the interest part. Too many FDs and accounts is a hassle best avoided.

The point to note here is that the more FDs and Accounts you create, the more cluttered and messy your finance management becomes.

A Checklist for Clutter Free Banking

  • List down the number of bank accounts and FDs you have.
  • Check if you have any dormant accounts and start closing them or transferring their savings (if they are of the same bank) to one single account.
  • Gradually start grouping the FDs that mature in close proximity to each other and merging them into one single FD.
  • For example, if you have 20 FDs and 4 of them are maturing within a time period of four months, you can make a single FD out of them. This way you will also save time and effort, and end up with fewer FDs.
  • Keep one joint account for you and your spouse from where you can manage your investments and common expenses, as the account remains accessible to both of you.
  • If required you can also create one personal account each for you and your spouse if you both are earning, with your salaries going into your respective accounts.
  • You can reserve your personal accounts for personal expenses.

Conclusion

As all your money is monitored under one PAN card, it really doesn’t make any sense to have multiple accounts as the government is only concerned with the amount lying under your PAN.

Just in case you didn’t know, if you don’t fall under the tax bracket, you can always submit form 15G or 15H to save on your TDS.

That’s all there is to make your banking clutter-free. Apply these working strategies to your financial life. You will not only save your precious time and effort but also gain a foothold from where you can achieve greater success.

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Jey S
Jey S
24. September, 2021.
I have been using Holistic Investment Planners for the last three years. Mr. Srinivasavaradhan answered all my questions and doubts very patiently during the first free consultation. I was able to clearly define my short-, medium- and long-term goals once I signed up for the comprehensive plan and got their investment plan suggestion to achieve my goals. They are very polite and highly professional whenever I contact them for any queries or make investments. They never pressurize you to invest on their recommended financial products. I would have been lost money by investing directly without their help since I do not have time and knowledge about different financial products. Risk planning is also done as part of financial planning. Truly, they are holistic planners when it comes to your financial planning. They help you to define your life goals, understand your financial resources and establish a plan to invest towards reaching those goals. They do review your plan as you progress to make sure that you are on correct path to achieve those goals. Kudos to the team and keep up the good work!!! I am happy that I found holistic investment planners for my financial planning and management.
aksaswadkar
aksaswadkar
24. September, 2021.
I was about to retire and really not understanding how to invest money to have financial freedom and fulfilling my goals. Was desperately searching on internet way out and fortunately came across Holistic Investment Planners. I read number of articles on their website and realized that this is the agency which I want and engaged their services for my retirement planning. It is an excellent experience to be associated with Holistic. Right from day one our interaction was fantastic and they gave me such a wonderful plan that I had never imagined. I am fortunate enough to be in the client list of Holistic. I have recommended Holistic to my friends as well.
Lionel Faber
Lionel Faber
16. September, 2021.
I've been availing their services for the past year. They are highly knowledgeable in the field and are very patient with all doubts and queries. Personalized financial planning is provided keeping your short term, medium term and long term goals in mind. They do not pressurize you to purchase schemes of their choice. They provide their input and suggestions and leave the decision up to you which shows their honesty and high principle.
Sridhar
Sridhar
8. September, 2021.
Financial planning brings peace in life. Holistic Investment have supported in arriving financial plan based on future goals. My investments are regular since then. They are professionals in their business, will recommend others.
Nitesh Agrawal
Nitesh Agrawal
6. September, 2021.
I have been using Holistic Investment Planners from last one year. The journey has been fantastic. Being a finance person myself I always thought we can look after and plan own finances also. However, due to lack of time and deciplain the things are not always as desired. After joining with Holistic Investment for the first time Icame to know the Financial goals and quantified them. Some dreams were unrealistic based on the earnings and savings so had a reality check. Also got the information and deciplain of investing on regular and more rewarding securities. I definetly suggest to use Holistic Investment Planners. They are professionals, available and hear youor full story before presenting plans. They are flexile in the sense if there are some urgent deviations required, they help to plan the same. For all professionals/individuals I would suggest using professional help of Holistic Investment Planners for best results in long term investment and financial goals achivements. Last advise will be to start early in your life. It really pays well to start in the beginning itself else the dreams needs to adjust :)
Swetha Vasanth
Swetha Vasanth
6. September, 2021.
This is my first year service with the Holistic Team and I would say that they are very much helpful in creating a financial plan and follow ups during the year. I would definitely suggest them if anyone who is willing to proceed with their savings professionally.
Joseph Mathias
Joseph Mathias
6. September, 2021.
I came to know about Holistic Investment Planners online while searching for different investment ideas. Once I contacted them the journey was very smooth. Mr. Ramalingam explained all the aspects of Financial planning in detail and it opened my mind. I realized how important it is to have a Financial planning. Mr. Rajan suggested all the requirements as per my goals and made a Investment plan keeping in mind of my goals. I started my Investment journey with them. I wish I had done it some years back then it would have been in a different level. Review meetings were held every six month to check the implementation of the plan and check the results as per the requirements and to check if any changes required. Overall it was a good experience with Holistic Investment team and would like to continue in the years to come.
Srinvas Kannan
Srinvas Kannan
30. July, 2021.
I came across Holistic investment planners almost 5-6 years back, but I did not have the trust since I had met a few of them who did not sound promising. Then I started investing through a financial advisor of my friend. After 4 years of investing the returns were very low. I was disappointed and started looking for financial advisors when I came across Holistic investment. I had a detailed discussion about my goals and the way they would approach achieving my goal before deciding to switch my investments to them. After a thorough analysis of my then existing portfolios, they suggested new ones and we zeroed-in on 6 schemes/funds where our investment would be split. I am glad I made the decision of switching over and taking Holistic planner's advise, my returns are handsome and I only wish I could have taken their help/advise 5 years back itself. Neverthless, I would like to recommend their services for investment and financial advise if someone is serious about their investments.
Shivaram Andiappan Selvaraj
Shivaram Andiappan Selvaraj
3. July, 2021.
I got a free first time consultation. I got my doubts resolved. They also gave additional advises for investment planning which was also useful.
Nellai B
Nellai B
26. June, 2021.
I have been associated with them for the past three years. They are very professional and polite in answering all our questions. I have complete trust in their suggestions. I strongly recommend for anyone. I am looking forward to have strong and successful association with them.
Google rating score: 4.4 of 5,
based on 61 reviews.

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