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Of late, I have been thinking about working towards having a “single source of financial truth.” Let me explain what I mean. There are four financial categories which I would like to track every month. These are:
- Savings, and
More often than not, cash flows into and out of these categories happen from multiple bank accounts, which steadily grow in number as you shift jobs but retain these bank accounts for no readily explainable reason. The result: You have no clue what’s happening where. Your income’s being credited into Account A, your EMIs are being debited from Account B, your investments are happening from both Accounts A and B, you’re worried about delayed transfers from Account A to Account B, and so on. That’s the problem when you have multiple sources of financial truths. Trying to consolidate them into a single source of truth is close to impossible. There’s a side effect too: You end up with too many PINs and too many passwords and you end up remembering none.
Here’s my idea for a single source of financial truth.
A savings account that is not related to your employment and from which you conduct transactions across the four financial categories every month. At the end of every month, you review this account’s statement and you have a clear idea of your financial dealings.
I’d like this savings account to have zero to low minimum balance requirements, low operation and maintenance charges, a debit card with sufficient withdrawal limits, check book, internet banking, and third-party transfer (NEFT/RTGS) facilities, Electronic Clearing Services (ECS), and mobile alerts.
Explains why I’ve been on an account closing mission, trying to eliminate all sources of financial clutter and mess.
What do you think? Do you have better ideas? Which bank would you recommend for such a savings account?
Thanks for reading this article. I'd love to hear your opinion. Please use the comments section below to share your thoughts. I frequently write new articles that also cover several other aspects of personal finance including credit cards, financial goals, health insurance, income tax, life insurance, mutual funds, retirement planning, and much more. You can Subscribe through Email and receive new articles directly in your Inbox or you can Subscribe through the RSS Feed and receive new articles in your feed reader.