Bank Rules: Often people are afraid of keeping more money in banks. Not only this, even those who keep money in banks also do not keep more than five lakhs. Some people think that more than five lakhs cannot be kept in the bank. Or else people think that if you keep more money in the bank, the income tax person will send a notice to them.
You must have heard someone saying this that you should not keep much money in the bank, but if you ask them the reason for that, then they will definitely not be able to tell. Actually, many misconceptions are spread among people about bank and money. Some people also say that one should not keep more than five lakh rupees in the bank, while there is no such rule.
You can keep as much money in your bank account as you want. In case of bank sinking or bankruptcy, the rule says that the government will give you five lakh rupees, that is, the bank has a guarantee of security up to five lakh rupees. If you have five lakh rupees deposited in your bank account and the concerned bank becomes insolvent then your five lakh rupees will be completely safe. Perhaps because of this people would think that not more than five lakh rupees should be kept in the bank.
However, keeping more money in the bank also has some disadvantages. First of all, due to excess money in the account, you can come in the eyes of income tax. But there is no need to worry about it. Income tax notice will come on your money only if the source of that money is not known. Therefore, you have to keep complete details of your money deposited in the bank, where the money came from, how it got deposited in your account.
If you have more money in your bank account and you are not able to prove the source of that money in front of Income Tax, then problems can arise. Your bank account can therefore be frozen, action can be taken against you.
One of the disadvantages of keeping more money in a savings account is that the interest on deposits is less. In such a situation, there is no use of depositing more money in the bank. Experts say that it would be better to make fixed deposits or invest those money in mutual funds. Interest will be more on it, that is, you will get more profit. Therefore, before keeping more money in the bank, think carefully once, so that there should be no loss.