For a long time, bank fixed deposits (FDs) have been a go-to savings instrument for conservative investors who are not much inclined towards high returns rather seek a safe approach first. But have you ever thought what is maximum universal limit is for FD investment per customer? We all wonder at some point: how much money can be placed in a fixed deposit? Is there a limit? Bollywood star Akshay Kumar once reflected on this question differently.
Akshay Kumar and a 100 crore FD
During a recent TV show, Akshay Kumar recalled an incident from his childhood. He said that he was astonished when he read in the newspaper that yesteryear superstar Jeetendra had a fixed deposit of Rs 100 crore. The question immediately came to his mind: how much monthly income would such a large FD generate?
Akshay’s father explained to him how much interest an FD generated in 1980s. His father told him that the interest rate at that time was around 13%, meaning an FD of Rs 100 crore would earn interest of approximately Rs 1.3 crore per month. This made Akshay understand that true wealth lies not just in earning, but in investing and generating regular passive income.
However, Akshay also said that a person’s financial ambition never stops. “Once you have Rs 100 crore, the goal becomes Rs 1,000 crore, then Rs 2000 crore, it never really stops.”
How much can one invest in FDs?
Now the real question – is there a limit on fixed deposits? The Reserve Bank of India (RBI) has not set any maximum limit on FDs. This means you can invest any amount in FDs and open multiple FD accounts in different banks.
However, it’s worth noting that, according to banking regulations, each depositor receives insurance (DICGC coverage) up to Rs 5 lakh, which includes both principal and interest. This means that if a bank goes wrong, only up to Rs 5 lakh will be considered protected.
Key FD rules and information
Minimum and maximum amount: Most banks set a minimum limit of Rs 1,000 to Rs 10,000 for FDs. There is no maximum limit.
Term and premature withdrawal: FDs range from 7 days to 10 years. If you need money and withdraw it prematurely, banks charge a penalty and a lower interest rate.
Interest rates: Interest rates depend on the bank and the tenure. Senior citizens are offered higher interest rates than regular investors.
Tax impact: Interest earned on FDs is taxable according to your income tax slab. However, investments in tax-saving FDs may be eligible for tax exemption under Section 80C.
Nomination facility: The RBI has made nomination facility mandatory for all FD accounts, allowing for easy transfer of funds in the event of death.
TDS deduction: Banks deduct TDS if interest income exceeds Rs 40,000 annually (Rs 50,000 for senior citizens).
Auto-renewal and maturity: Many banks automatically renew FDs upon maturity. Therefore, investors should decide in advance whether they want to withdraw the amount or renew it.
Who can open an FD?
Fixed deposits are available to everyone — whether minors, working individuals or senior citizens.
Why is an FD safe and attractive?
Fixed deposits are still considered the safest investment instrument because the capital is protected and the interest is fixed. However, it is important to understand factors such as interest rates, tax implications and insurance coverage before investing.
Summing up…
Akshay Kumar’s story teaches us that both earning money and investing it safely are important. While FDs may not offer high returns like the stock market, they offer stability, security and reliability. And yes, there’s no limit from the RBI. You can invest as much as you want, just remember that insurance coverage is limited to Rs 5 lakh.