As it is rightly said, save money and money will save you in the end. From childhood, we are taught to save money for our future as life comes with surprises, and a surplus amount of funds always comes in handy when in a time of need. Opening a savings bank account is one of the safest ways to start your savings journey.
Also, modern banking techniques like digital savings account, and zero balance savings account makes the process even simpler. However, the immediate question that arises is that what is the cash deposit limit in a savings bank account? Could we put it in crores? Or we will have to stick to thousands? Worry not! Scroll down to know the detailed answer to this frequently asked question.
The most you can keep in a savings account
As such there is no limit on how much money you can save in a savings bank account, but there is always a 'but'. The maximum amount of money you can save in your account can only be set by your bank, but in most cases, there is no such limit set as the banks also earn a good amount with your deposited funds.
However, if there comes a time when your bank introduces a savings account deposit limit on your bank account, you always have an option to open another savings account. In fact, you can have numerous savings bank account under your name.
Make more money on your deposits
There is no set limit to the amount of money you can deposit in a savings bank account or a digital savings bank account; you must evaluate your choices if you have a substantial amount of funds at your disposal if so you do not want to fall under the taxman’s eye.
When you deposit money in a savings account, what you're doing is making a loan to the bank. The financial institution will take your money and merge it with the funds saved by its other clients. The bank uses that pool of money to make investments and lend to its other consumers in loans. If you have a considerable amount of money to deposit in a savings account, you should look for a bank account that rewards you with highest interest rate savings account.
How much cash can you deposit in savings account in a day
Making a cash deposit in your savings account is simple. All you required to do is carry the cash to the branch and fill out a deposit slip. But ensure that you do not surpass the daily a limit when doing this. The cash deposit limit in savings account in India for a day is set at ?1 lakh and is the same for all the banks in India.
Depositing more than ?1 lakh in an Indian bank's savings account may draw the attention of the Income Tax department and shall be considered an unethical practice.
What are the rules for cash deposits in savings account?
Cash deposit is a method of keeping money in a bank or a savings account through money transfer, ATM, or bank cashier. In broader terms, cash deposit refers to allocating funds in a financial institution for protective supervision. After fulfilment of the transaction, one can withdraw the cash.
Anyone can safely deposit up to Rs.250,000/- in the account, probably without getting a red flag from the IT department.
If the amount deposited is above Rs. 250,000/-, The IT Department will trace any deposit above a specific saving account limit in India. Still, suppose it is well maintained and legitimate in that circumstance, no questions will arise, no penalty, Otherwise Income Tax maybe imposed at the highest applicable rate, plus a 200% penalty may also be levied.
What are the rules for large deposits in savings bank account?
The IT department may examine people who deposit cash above Rs. 2.5 lakh and senior citizens who deposit cash above Rs. 5 lakhs. As mentioned before, there is no set saving account limit capped for the consumers until the money comes from ethical sources.
Any amount within the designated the cash deposit limit in a savings bank account will be excluded from the investigation, reflecting that the money is from household savings, cash withdrawals, earlier income, or any other ethical source.
Popular Searches on Kotak811
Kotak811 Insights | 811 Edge Savings Account | Free Digital Savings Bank Account | Apply for Image Debit Card | ActivMoney Savings Account | Check Your CIBIL Score | Savings Account | Kotak811 | Zero Balance Savings Account
This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empanelled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees, and contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.