Bank FD investment limit: If we have crores of rupees, can we invest them in FDs? Is there any limit on this?
Bank FD investment limit: Many people in India prefer to invest in bank FDs. Bank FD investments are considered a safe investment option. Furthermore, this investment avenue offers guaranteed returns. FD investments don’t expose you to the risk of fluctuations like the stock market. This is why bank fixed deposit schemes are the preferred investment choice for many people in the country.
Many people often ask, what is the maximum amount that can be invested in a bank FD? If we have millions of rupees, can we invest them in FDs? Is there any limit on this? Different banks have different policies and conditions regarding bank FDs.
The Reserve Bank of India (RBI) has not set a maximum investment limit for fixed deposits. This means you can open an FD for any amount. However, you should be aware that, under the bank’s regulations, account holders receive insurance coverage of up to ₹5 lakh under the Deposit Insurance and Credit Guarantee Corporation.
This means that if the bank defaults, the amount of Rs 5 lakh will be considered safe. In the event of a bank default, you will receive Rs 5 lakh. The minimum investment limit for an FD can range from Rs 1,000 to Rs 10,000, depending on the bank.
There’s no maximum limit. FD investment tenures can range from 7 days to 10 years. Premature termination of your FD could result in a penalty. Furthermore, you’ll receive a lower interest rate.
Senior citizens receive higher interest rates than normal when investing in fixed deposit schemes. You should know one important thing about fixed deposits: If you earn more than ₹40,000 in interest annually (₹50,000 for senior citizens), banks deduct TDS.
