When creating a new business, one of the questions that comes to mind of every business owner is, "How Many Bank Account Should I Create For My Business?". Before making a conclusion on this topic, you need to consider some of the merits and demerits of having multiple accounts. Let's first consider the advantages;

Disadvantages Of Having Multiple Business Accounts For Your Business

Below are some of the disadvantages of having multiple business accounts for your business:

— Difficulty In Remembering Passwords

If you have multiple bank accounts, you will need to keep separate profile forms and passwords for each bank you open. Consider an example in which these banks require you to update your password every six months for security reasons, and you have to do so for five accounts. Isn't that strenuous? What happens if you forget any of the passwords to these accounts by mistake? These questions serve as an excellent reminder of disadvantageous it is to create multiple bank accounts.

— High Charges

Do you know that each savings accounts you open comes with its charges? This means you'll have to pay a few small fees for things like ATM Card, SMS alerts, and ATM use, among others. Furthermore, at banks like UBA and other commercial banks, the service costs for maintenance could be as much as five hundred naira. As a result, having multiple bank accounts will result in higher charges.



— May End Of Being Dormant

You may have an inactive savings account if you are unable to maintain track of your finances. Unscrupulous persons may detect that your account is dormant and try to take advantage of it, especially if the savings account has a balance. Inactive accounts also yield low interest rates.



— Requires More Time To Manage

One of the main disadvantages of having multiple bank accounts is also that you must keep records of all of them. You don't want to risk having insufficient funds in one of your accounts when a bill arrives because overdraft fees can add up quickly. To keep your accounts flush, you may need to constantly make transfers between them. While it's not impossible to manage many accounts, it may need a little more work than creating a single account.

Read the full details here [https://www.trouperblog.com.ng/2022/04/plan-on-opening-multiple-business.html]