Salary Account: Whether you should close the old salary account while changing the job? This shutting down or keeping it depends on your financial condition and PF, tax records. Know what is the best way in this article …
Salary Account Management Tips: Changing jobs has become common nowadays. But when it comes to the salary account, many people get confused, ‘Do I stop the old bank account or do it benefit in keeping it?’ This question becomes very important because it is not only limited to financial security, but is also related to income tax, PF and other benefits in the future. So let’s know what to do with the old salary account …
Benefits of closing old salary account
1. Account management is easy
If you have two or more bank accounts, it can be a bit difficult to manage transactions and bill payments. Closing the old account reduces this burden and it is very easy to manage the account.
2. low bank fees and charge
Some bank accounts have a condition of maintenance charge or minimum balance. Closing the old account can save you unnecessary charge. If you do not close it, then such fees and charges will continue to be made on your pocket.
3. Safety Causes
If an in-active account remains open for a long time, the fraud can be a victim of fraud. Closing it is quite good as a financial safety. Therefore, the old salary account should be discontinued on changing the job.
Benefits of keeping old salary account
1. Easy for pension, PF and tax records
If PF or tax deduction is attached to the old account, it can be difficult to track records. Keeping the old account makes it easy to track your retired and tax records and helps in any dispute or clearance in the future.
2. Old Payments and Credit History
Sometimes the credit history of old account can be used in new job, bank loan or credit card application. For the bank, it shows that your financial behavior has been stable and reliable, which increases the chances of approval.
3. For Emergency Fund
If there is a slight balance in the old account, it can be kept as savings and emergency funds. Suddenly, this backup fund may be useful in the event of a expense or medical emergency.
What to do when changing the job, close or keep?
According to financial experts, the account is inactive and if it does not have any necessary funds or PF links, it is better to close it. If the account has PF, tax records or old loan-investment links, you can keep it. Experts say, ‘Transfer the balance of the old account and get the account deactivated online. This keeps security and it can also be reacted if needed in the future.
What are the things to keep in mind while closing the bank account?
- Turn off online transactions. First of all shift debit, credit and autopements to new accounts.
- Don’t forget to update the new job PF and salary account.
- Fill the account closing form. Close the account properly by going to the bank or filling the online form.
- Keep an account closing response. This may be necessary for a deposit or tax claim in the future.
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