What is the Maximum Amount that You Can Invest in a Fixed Deposit?

Get up to 9.40% p.a. interest, inclusive of additional benefit of 0.50% p.a. for senior citizens and 0.10% p.a. for women Open an FD

Fixed deposits (FDs) have long been a favoured investment option for the individuals seeking stable returns and secure their savings. However, one of the most common queries that many investors have is regarding the limit on the maximum FD amount.

The answer to this query is simple. There is no maximum limit on the amount that can be deposited in an FD. However, it’s crucial to understand that the highest FD amount limit that one can invest is subject to various factors, primarily determined by the policies of the FD issuer.

Factors Determining the Maximum FD Limit

Let’s take a look at some factors that determine the maximum amount for FD you can invest:

1. FD Issuer Policies

Typically, more established FD issuers set a higher fixed deposit limit compared to small banks or NBFCs. Moreover, these issuers establish their own guidelines and policies regarding the maximum limit, which can vary widely.

2. Interest Rates and Tenure

Interest rates and chosen tenures typically determine the maximum amount you can invest in a fixed deposit. The maximum deposit limit may differ across issuers for short-term and long-term FDs.

If you are planning to deposit a substantial amount, you may benefit from longer tenures that offer higher FD interest rates.

3. Regulatory Guidelines

Regulatory bodies like the Reserve Bank of India (RBI) set guidelines to ensure the financial stability, transparency, and consumer rights are protected. They usually set the maximum FD limit that can be invested. This helps prevent concentration of funds in any single institution and reduce systemic risks.

These regulations also aim to ensure fair practices, prevent predatory pricing, and protect consumers from excessive interest rate fluctuations.

In India, the Deposit Insurance and Credit Guarantee Corporation (DICGC) provides insurance coverage for bank deposits up to ₹5 Lakhs per depositor.

Bank Specific Maximum Limits on Fixed Deposits

Here are the list of maximum limit on fixed deposit allowed in banks, categorised according to different sectors:

Public Sector Banks

Bank Name	Maximum FD Limit	Tenure Options
State Bank of India	No upper limit	7 days to 10 years
Punjab National Bank	₹10 Crores	7 days to 10 years
Bank of Baroda	₹2 Crores	7 days to 10 years
Canara Bank	No upper limit	15 days to 10 years

Disclaimer: The values mentioned in the above table are based on the latest available data as of October 2024, and may vary in future. Please check with the bank prior to making any decision.

Private Sector Banks

Bank Name	Maximum FD Limit	Tenure Options
HDFC Bank	₹10 Lakhs	1 year to 10 years
ICICI Bank	No upper limit	7 days to 10 years
Axis Bank	₹1.99 Crores (Digital FD)	7 days to 10 years
Kotak Mahindra Bank	No upper limit	7 days to 10 years

Disclaimer: The values mentioned in the above table are based on the latest available data as of October 2024, and may vary in future. Please check with the bank prior to making any decision.

Foreign Banks

Bank Name	Maximum FD Limit	Tenure Options
Citibank	No upper limit	7 days to 5 years
Standard Chartered	₹7.5 Crores	7 days to 5 years
HSBC	No upper limit	7 days to 5 years

Disclaimer: The values mentioned in the above table are based on the latest available data as of October 2024, and may vary in future. Please check with the bank prior to making any decision.

NBFCs Maximum Limits on Fixed Deposits

NBFC Name	Maximum FD Limit	Tenure Options
Bajaj Finance	₹3 Crore	1 year to 5 years
Shriram Transport Finance	₹10 Crore	1 year to 5 years
Mahindra Finance	₹25 Crore	1 year to 5 years
Aditya Birla Capital	₹1 Crore	1 year to 5 years

Disclaimer: The values mentioned in the above table are based on the latest available data as of October 2024, and may vary in future. Please check with the NBFC prior to making any decision.

Tax Implication on Interest Earnings

If you plan to deposit a large sum in an FD, you must learn the tax implications accordingly. Interest earned from FDs are subject to Tax Deducted at Source (TDS) of 10%. If the interest exceeds ₹40,000 (non-senior citizens) or ₹50,000 (senior citizens) in a financial year, TDS will be applicable.

This means that the bank deducts TDS before crediting the interest to your account. It's important to note that the interest earned from FDs is added to your total income for the year and taxed as per your income tax slab. Therefore, you need to declare the interest earned from FDs in your income tax return and pay tax accordingly. It's advisable to consider the TDS deducted while calculating your total tax liability for the financial year.

Disclaimer

The information provided by BFDL herein above is related to the Non-Partnered Banks/ NBFCs and is just for the purpose of information and under no circumstances the information provided hereinabove is intended to be source of advice or recommending any financial investment advice or endorsement of any sort.

The information including interest rates with regard to fixed deposit, provided on this website is gathered through publicly available sources over the internet and is considered as accurate and reliable to the best of our knowledge. BFDL disclaims any responsibility or liability regarding inaccuracies, omissions, mistakes etc. as well as offers by the Non-Partnered Banks. The use of information set out is entirely at the User’s own risk and User should exercise due care prior taking of any decision, on the basis of information mentioned hereinabove. You are advised to visit/ contact the respective Banks/ NBFCs to verify the information before making any investment or opening an account. Further, BFDL does not undertake any responsibility or liability to update this information. YOU ARE SOLELY RESPONSIBLE FOR ANY LIABILITY OR DAMAGE YOU INCUR THROUGH ACCESS TO OR USE OF THE SITE OR SUCH INFORMATION OR MATERIALS EXCEPT WHERE THE LAWS AND REGULATIONS OF A PARTICULAR JURISDICTION CONCERNING WARRANTIES CANNOT BE WAIVED. Additionally, display of any trademarks, tradenames, logo and other subject matters of intellectual property owners. Display of such Intellectual Property along with the related product information does not imply BFDL’s partnership with the owner of the Intellectual Property of such products.

What factors determine the maximum amount I can invest in a Fixed Deposit?

The maximum deposit limit is influenced by factors such as bank policies, regulatory guidelines, interest rates, tenor, and tax implications, among others.

Does the maximum deposit limit change across tenors?

Yes, depending on the FD issuer, the maximum deposit limit may differ across the tenors offered. Investors looking to deposit a higher amount could consider long-term FDs that come at competitive interest rates.

What are the tax implications on interest earned through FDs?

The interest earned from FDs is subject to Tax Deducted at Source (TDS). If the total interest earned on FD exceeds ₹40,000 (₹50,000 for senior citizens), then TDS is deducted at the rate of 10%.

Can regulatory guidelines impact the maximum deposit limits in FDs?

Yes, government and regulatory authorities establish guidelines to ensure the stability of the financial system. These guidelines can influence the maximum amount that can be invested in FDs.

How can I optimise my returns while investing in FDs?

Consider a diversified approach by spreading your investments across multiple fixed deposits with varying tenor. This strategy can help balance liquidity and enhance overall returns.