Freedom From Multiple Bank Accounts: How To Do This?

Switching jobs often results in the accumulation of multiple bank accounts. To manage this effectively, restrict your accounts to just two with the following strategies
Freedom From Multiple Bank Accounts: How To Do This?

In the dynamic landscape of changing jobs and evolving financial circumstances, the allure of new salary accounts may seem appealing. The influx of debit cards and associated perks like reward points, insurance, and discounts can make your wallet feel plump, but this scenario isn't as ideal as it may seem.

The accumulation of multiple bank accounts can lead to unforeseen troubles down the line. Those seemingly innocuous accounts can transform into sources of inconvenience and financial strain if not managed wisely.


After each job transition, your salary account turns into a regular savings account after a certain period of time. These accounts typically come with a requirement for maintaining a minimum balance, be it on a monthly or a quarterly basis. Falling short of this minimum balance can result in penalties that chip away at your funds. In addition, you do not want to sift through a dozen cheque books before finding the right one, isn’t it?

So, the question arises, how many bank accounts should you ideally have? The answer lies in a streamlined approach of maintaining just two accounts: a salary account and a permanent account. The permanent account becomes the repository for your emergency fund and various investment plans like systematic monthly plans, among others.


Financial experts underscore the significance of this strategy. They emphasise that excessive bank account turnover could lead to missing out on essential financial transactions, such as tax refunds and dividend payments. Instead, focusing on a single permanent account aids in managing crucial payments like income tax dues and home loan repayments and also manages your investments or redemption proceeds.

Maintaining the liquidity of your permanent account requires much lesser efforts than managing multiple accounts. What you essentially need to do is just transfer funds from your salary account at the start of each month. You just need to ensure that your chosen permanent account belongs to a bank which offers comprehensive services and also has an extensive network. This choice empowers you to operate the account seamlessly from anywhere across the nation where the bank holds a presence.

When embarking on a job transition, it’s wise to refrain from closing your old salary account, especially if it’s affiliated with a bank that boasts widespread accessibility.

Instead, consider requesting your new employer to issue your salary in the existing bank account. This will help in maintaining its utility and avoiding the unnecessary complexities of multiple accounts.


Optimal Number Of Accounts: Keep your bank account portfolio restricted to two accounts – a permanent account and a salary account.

Strategic Banking Partnerships: Choose banks with comprehensive services and an extensive branch network. This will ensure your ability to operate your account unhindered, even if you relocate.

Transitioning Employment: When transitioning jobs, preserve your old salary account and request the new employer to credit your salary in the existing account. That is a prudent choice.

Joint Account With Spouse: If you are tying the knot, you can have a joint account with your spouse to avoid having multiple accounts. This approach will not only streamline your finances, but also foster a collaborative financial journey.

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