Thinking of making an FD? Find out how much the deposit limit is.
FD Deposit Limit: If you want a safe investment, FDs are a good option. But do you know how much you can invest in an FD? Learn the limit.
FD Deposit Limit: Nowadays, people are very cautious about investing. Many consider investing in fixed deposits (FDs) to be quite safe. FDs have always been the first choice for those who want to avoid risk and seek stable returns on their money.
You get a fixed interest rate along with a guaranteed return over a fixed period. This is why everyone from employed people to retired people considers FDs a reliable investment. However, many people don't know the maximum amount that can be deposited in an FD and what the limit is. Let's understand the full details.
How much can be deposited in an FD?
Many people don't know how much money can be invested in an FD. It's worth noting that the Reserve Bank of India (RBI) has not set any maximum limit for FD investments. This means you can invest in FDs of lakhs or even crores of rupees. Many banks also allow a single customer to open multiple FD accounts.
However, for banking security, each customer is only covered by the Deposit Insurance and Credit Guarantee Corporation (DICGC) for up to ₹5 lakh. This covers both principal and interest. If the bank defaults for any reason, your money will be protected only up to this amount.
Some Important Points About FDs
FD rules vary slightly from bank to bank. However, in most cases, the minimum deposit amount is between ₹1,000 and ₹10,000. FD tenures can range from 7 days to 10 years. If an FD is broken before maturity, the bank may impose a penalty or a lower interest rate. Interest rates vary depending on the bank and the term of the deposit. Senior citizens generally receive higher interest.
Interest earned on FDs is taxable according to your income tax slab. If the interest income exceeds Rs. 40,000 (Rs. 50,000 for senior citizens), the bank deducts TDS. Investing in tax-saving FDs also provides tax benefits under Section 80C of the Income Tax Act.
