Managing Multiple Bank Accounts? Beware of These 4 Downsides

by Jobuza Team | Jun 6, 2025 | BLOG, Trending News

In today’s digital world, banking plays a crucial role in our everyday lives. With the widespread use of UPI, internet banking, and mobile apps, managing finances has become easier than ever. However, while having a bank account is essential, maintaining multiple bank accounts can sometimes do more harm than good.

Many people open two or more accounts for different purposes—salary deposits, savings, investments, or even just offers. But if you’re managing more than one account, you need to be aware of some major disadvantages. Let’s take a closer look at four key drawbacks of maintaining multiple bank accounts.

1. Funds Get Locked in Multiple Accounts

Each bank account typically requires a minimum balance to remain active. If you have several accounts, you’ll need to keep a portion of your money idle in each one just to meet these requirements. Over time, a significant amount of your funds may end up sitting unused across your accounts.

This money earns only a low interest rate of around 4–5% annually in savings accounts. In contrast, investing the same amount in other financial instruments like mutual funds, fixed deposits, or PPF could give you better returns. So, by spreading your money thinly across multiple bank accounts, you could be losing out on higher potential earnings.

2. Extra Maintenance Charges and Service Fees

Having more than one bank account also means dealing with multiple maintenance fees. Many banks charge an annual fee for services such as debit cards, internet banking, and SMS alerts. These charges may seem small individually but can add up quickly when applied to multiple accounts.

Additionally, you may also incur penalties if you fail to maintain the minimum balance in any of these accounts. Over time, these service costs can eat into your savings without offering much benefit in return.

3. Negative Impact on Your Credit Score

Keeping several bank accounts, especially inactive ones, can affect your credit score. If any of your accounts fall below the required minimum balance or remain inactive for long periods, it could be flagged during credit evaluations.

Banks and financial institutions consider poor account management as a negative sign, which may result in difficulty getting approved for loans, credit cards, or other financial services in the future.

4. Complications in Filing Income Tax

During tax season, having multiple bank accounts can create additional stress and paperwork. You are required to report income and transactions from all your accounts while filing your income tax return (ITR). The more accounts you have, the more statements and details you need to track and organize.

Failure to report any account, even unintentionally, can lead to scrutiny or questions from the Income Tax Department. This not only complicates the filing process but may also invite penalties or legal issues.

Salary Accounts Can Convert to Savings Accounts

One more thing to consider—if you change jobs, your salary account may stop receiving payments. After a few months of inactivity, your salary account automatically converts into a regular savings account, which follows different rules.

Unlike salary accounts, savings accounts require a minimum balance. If you fail to maintain it, the bank will begin deducting charges from your balance. This can catch many people by surprise, especially if the account is no longer actively used.

Final Thoughts

While there may be specific reasons to maintain more than one bank account, it’s important to understand the hidden costs and administrative burden it brings. From idle funds and lower returns to extra charges and tax complications, having multiple accounts can impact your financial health more than you might expect.

If you do need more than one account, make sure each one serves a clear purpose and is actively managed. Otherwise, it may be wise to consolidate and close unused accounts to streamline your finances.

Disclaimer: This article is based on information originally published by Hr Breaking, edited and rewritten for clarity and SEO optimization. All rights remain with the original source.

Big Financial Updates Effective June 1, 2025 – Full List Inside

by Jobuza Team | Jun 5, 2025 | BLOG, Trending News

Big Financial Updates: Financial Changes Effective from June 1, 2025: What You Need to Know

Big Financial Updates: Starting Sunday, June 1, 2025, several key financial changes will come into effect that could directly impact how you manage your personal finances. From new credit card charges to updates on ATM withdrawals, LPG prices, FD rates, and Aadhaar card updates, these changes are important for salaried professionals, business owners, and households alike. Staying informed will help you avoid extra charges and make smarter money decisions.

1. Credit Card Charges and Reward Changes

If you use your credit card to pay bills or refuel, expect some new charges. From June 1, banks like Kotak Mahindra will start charging a 1% fee on fuel purchases once you cross a monthly limit. Additionally, reward points may be restricted on certain payments such as rent, utility bills, and insurance premiums.

Auto-debit penalties are also being revised. If an automatic payment fails due to insufficient balance, the penalty may now be as low as 2%. International transaction fees and reward policies may also change, depending on your bank. It’s advised to review the latest updates on your bank’s official website or app.

2. ATM Withdrawal Charges May Increase

Banks may revise the charges for withdrawing cash from ATMs beyond your free monthly limit. Each bank has its own rules, so it’s important to check with your specific bank to understand the updated fees and avoid unexpected charges when withdrawing cash.

3. LPG Cylinder Price Update

On the first of every month, LPG prices are reviewed and updated. The change depends on global market conditions and may lead to a price increase, decrease, or no change at all. Keep an eye on official announcements to plan your household budget accordingly.

4. Fixed Deposit Interest Rate Cuts

Some banks are reducing fixed deposit (FD) interest rates from June 1. For example, Suryoday Small Finance Bank is cutting rates by up to 0.60%. While most FD rates currently range between 6.5% to 7.5%, changes in market conditions could impact future returns. If you’re planning to invest, it’s wise to compare the latest FD rates across banks before locking in your money.

5. Free Aadhaar Card Update Deadline Nears

The deadline for updating your Aadhaar card for free on the myAadhaar portal is June 14, 2025. After this date, charges will apply — Rs 25 for online updates and Rs 50 at physical Aadhaar centres. Make sure to update your details before the deadline to avoid any fees.

Final Note

These financial changes, although routine, can affect your monthly expenses and savings if you’re not prepared. Be sure to review your banking terms, utility payments, and investment plans in light of the new rules starting June 1, 2025.

National Pension System (NPS): A Smart Retirement Move or Not? Pros & Cons Inside

by Jobuza Team | Jun 3, 2025 | BLOG, Trending News

The National Pension System (NPS) is a government-backed voluntary retirement savings scheme designed to help individuals build a secure financial future after retirement. Regulated by the Pension Fund Regulatory and Development Authority (PFRDA), NPS encourages long-term, disciplined investing by allowing subscribers to contribute regularly during their working years.

Upon retirement, a portion of the total corpus can be withdrawn as a lump sum, while the rest is converted into an annuity to ensure a steady monthly income. But is NPS the best choice for your retirement planning? Let’s explore all the key advantages and disadvantages to help you make an informed decision.

Advantages of NPS

1. Diversified Investment Portfolio

One of the biggest strengths of NPS is its diversified asset allocation. It invests in a mix of equity, corporate debt, government securities, and alternative assets. This balanced structure helps in managing risks while aiming for long-term returns. Your funds are managed by professional fund managers appointed and regulated by PFRDA, reducing the need for daily investment monitoring.

2. Flexible Investment Choices

NPS offers two main investment approaches — Active Choice and Auto Choice. With Active Choice, you control your asset allocation across the available classes. Auto Choice, on the other hand, provides a preset allocation based on your age and risk profile (Aggressive, Moderate, or Conservative). This flexibility ensures the investment strategy can be tailored to suit your goals and risk tolerance.

3. Option to Switch Fund Managers

NPS allows you to switch fund managers once every financial year and change your investment choices up to four times a year. With access to 10 fund managers, this feature enables you to optimize returns by moving to better-performing schemes without incurring additional costs or taxes.

4. Attractive Tax Benefits

NPS is among the most tax-efficient retirement investment tools in India. You can claim deductions up to ₹1.5 lakh under Section 80C. Additionally, an extra deduction of up to ₹50,000 is available under Section 80CCD(1B), making NPS an effective way to reduce your taxable income while planning for retirement.

5. Steady Retirement Income

At retirement, NPS ensures income stability through a mandatory annuity purchase with at least 40% of the accumulated corpus. The remaining 60% can be withdrawn as a lump sum. This split allows retirees to manage immediate needs while securing lifelong monthly income through the annuity.

6. Easy and Convenient Online Process

Opening and managing an NPS account is simple and fully digital. You can complete the application, upload documents, and start investing from home. Contributions can be made monthly, quarterly, or annually, offering great flexibility for individuals with varying income flows.

Disadvantages of NPS

1. Taxation on Annuity

While 60% of the corpus is tax-free at maturity, the remaining 40% used to buy an annuity is taxable as income based on your slab rate. This can reduce the net retirement income, especially for those in higher tax brackets.

2. Limited Liquidity

National Pension System (NPS) is a long-term product with strict withdrawal rules. Full exit is allowed only after five years of contribution, and even then, only 20% can be withdrawn in cash. The remaining 80% must go into an annuity. Partial withdrawals of up to 25% are allowed, but only for specific reasons such as higher education, home purchase, or medical emergencies, and only after three years of continuous investment.

3. Capped Equity Exposure

To manage risk as subscribers approach retirement, NPS gradually reduces equity exposure after age 50. It decreases by 2.5% each year and caps at 50% by the time you turn 60. While this strategy protects your retirement savings, it limits growth potential for those who want to remain aggressive with their equity investments even later in their career.

Should You Choose NPS for Retirement?

National Pension System (NPS) offers a solid foundation for retirement planning, especially for individuals seeking a low-cost, tax-efficient, and professionally managed scheme. The flexibility to choose asset allocation, switch fund managers, and enjoy tax benefits makes it appealing to many investors.

However, it’s important to consider the limitations — especially the restricted liquidity, taxation on annuity, and equity exposure limits. If you are comfortable with long-term investing and focused on retirement-specific goals, NPS could be a valuable part of your financial portfolio.

Before investing, assess your financial needs, compare other retirement tools, and consider consulting a financial advisor to ensure NPS aligns with your overall retirement strategy.

From PF Withdrawal Rules to Aadhaar Updates: 5 Big Financial Changes in June 2025

by Jobuza Team | May 30, 2025 | BLOG, Trending News

5 Major Financial Changes in June 2025: PF Access, Credit Cards, Aadhaar and More

PF Withdrawal Rules: Starting June 1, 2025, several key financial changes will come into effect across India. These updates will impact everyday banking, investments, credit card usage, and government services. From changes in EPF withdrawals to the last date for free Aadhaar updates, here’s a detailed look at the top five financial changes you need to know.

1. EPFO 3.0 Launch: Faster PF Withdrawals and ATM-Like Access

One of the most anticipated updates is the launch of EPFO 3.0, a new version of the Employees’ Provident Fund Organisation system. Effective from June 1, this upgrade is designed to make PF-related services more efficient.

Key features of EPFO 3.0 include:

• Simplified PF withdrawals

• Faster KYC updates

• ATM-style cards to help users access EPF funds more easily and instantly

This move is expected to reduce delays in PF claim settlements and improve user experience.

2. Fixed Deposit Interest Rates Revised by Suryoday Small Finance Bank

From June 1, 2025, Suryoday Small Finance Bank will revise its fixed deposit (FD) interest rates. The updated rates will range from 4% to 8.4% for deposits below Rs 3 crore. The highest rate of 8.4% applies to tenures between 30 to 36 months.

However, there’s a notable drop in the 5-year FD rate, which will decrease by 60 basis points — from 8.6% to 8%. This adjustment aligns with broader market shifts and reflects changing economic conditions.

3. Axis Bank Rewards Credit Card Changes

Starting June 20, 2025, Axis Bank will roll out important changes to its Rewards Credit Card. These changes include:

• Revised point earning structure

• Updates to eligible merchant categories

• Modifications in the validity of reward points

These updates aim to help users better understand their rewards and make informed decisions about how they use their cards.

4. SEBI’s New Cut-Off Timings for Mutual Funds

From June 1, 2025, the Securities and Exchange Board of India (SEBI) will enforce new cut-off timings for transactions in overnight mutual fund schemes.

The updated cut-off times are:

• 3 PM for offline transactions

• 7 PM for online transactions

Orders placed after these times will be processed on the next business day, potentially resulting in a different Net Asset Value (NAV). These changes are intended to improve fund management and ensure smoother processing of investor transactions.

5. Aadhaar Update Deadline Ends June 14

The last date to update Aadhaar documents online for free is June 14, 2025. After this date:

• Online updates will cost Rs 25

• Updates at physical Aadhaar centres will cost Rs 50

The update includes verifying or changing identity and address documents. Keeping your Aadhaar details accurate is essential for seamless access to government services and banking processes.

Final Thoughts

PF Withdrawal Rules: These changes reflect India’s ongoing efforts to modernize financial systems and improve user convenience. Whether you’re an investor, salaried employee, or simply managing your day-to-day finances, staying updated on these developments is crucial.

Make sure to review these updates carefully and take necessary actions—such as updating Aadhaar details or revisiting your FD plans—to stay compliant and financially prepared.

Get Rs 5 Lakh Free Medical Cover with Ayushman Vay Vandana Card – Application Process Explained

by Jobuza Team | May 29, 2025 | BLOG, Trending News

Ayushman Vay Vandana: The Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (PMJAY) is a flagship healthcare scheme by the Government of India, designed to provide free medical treatment to eligible citizens. A special provision under this scheme offers cashless treatment worth up to Rs 5 lakh per year to all senior citizens aged 70 and above, regardless of their income or economic status.

This initiative aims to support more than 6 crore senior citizens across 4.5 crore households in India, making quality healthcare accessible and affordable.

Key Features of Ayushman Bharat PMJAY for Senior Citizens

• Eligibility: All Indian citizens aged 70 years and above

• Coverage: Free medical treatment up to Rs 5 lakh per year

• Network: Access to over 2,000 empanelled hospitals across the country

• No income restriction: Only age is required for eligibility

• Immediate coverage: No waiting period after enrolment

• Mandatory Aadhaar e-KYC for enrolment

Who Can Apply?

To be eligible for this scheme:

• The applicant must be 70 years or older, as per their Aadhaar card.

• There is no income or category requirement.

• If the Aadhaar card shows only the year of birth, January 1 of the following year is considered for age calculation.

• If both parents are 70 or older, only one needs to be enrolled initially. The second can be added later using the “Add Member” option.

How to Register for Ayushman Bharat PMJAY

Senior citizens can register themselves and get their Ayushman Vay Vandana Card by following these steps:

Option 1: Through the Official Website

1. Visit the official PMJAY portal: www.beneficiary.nha.gov.in

2. Complete Aadhaar-based e-KYC verification.

3. Fill in personal details such as name, age, address, and family information.

4. Upload required documents and submit the application.

5. Once approved, download the Ayushman Vay Vandana Card.

Option 2: Through the Ayushman Bharat Mobile App

1. Download the Ayushman App from the Google Play Store.

2. Open the app and tap “Login” as a beneficiary or enrolment operator.

3. Enter your mobile number, captcha code, and authenticate via OTP.

4. Provide Aadhaar details and consent for e-KYC.

5. Fill in demographic details like category, PIN code, and state.

6. Add eligible family members using the “Add Member” option.

7. Submit the application and download the card once approved.

Benefits of the Ayushman Vay Vandana Card

• Cashless treatment in empanelled hospitals, including private and government facilities

• Covers a wide range of medical conditions and surgeries

• No waiting period—coverage begins immediately

• Reduces out-of-pocket expenses for elderly citizens

• Enables senior citizens to access high-quality healthcare without financial stress

Final Words

The Ayushman Bharat PMJAY Senior Citizen Scheme is a landmark initiative aimed at securing the health of India’s elderly population. With no income or category barrier, this scheme ensures that every senior citizen aged 70 and above can access free medical care up to Rs 5 lakh annually.

Whether for yourself or your elderly family members, make sure to complete the enrolment process and download the Ayushman Vay Vandana Card to start accessing these healthcare benefits immediately.