Safety is always a prime factor for any investment.Whether it is a mutual funds or fixed deposits risk is always associated with any financial instrument.Though bank fixed deposits are considered to be of highest safety,credit risk is always there and risk of human errors is always there.But,bank deposits are insured upto extent of Rs 1 Lakh and some important highlights are as follows:
1.Deposit insurance coverage is provided by Deposit Insurance And Credit Guarantee Corporation.It is a subsidiary of Reserve Bank Of India.
2.Cost of premium is beared by the concerned bank.
3.This facility is available for all co-operative ,Nationalized and private banks who are members of DICGC.
5.Max. deposit insurance available is Rs.1 Lakh combining saving account, fixed deposits and recurring deposits plus interest accured.
6.Deposit insurance is not available for company fixed deposits and deposits of co-operative credit socities.
7.Different combination of names are considered for separate insurance.E.g: Mr”A” make a fixed deposit of 3 Lakh on his name ,then deposit coverage will be Rs 1 Lakh . But if he made 3 separate deposits with different combinations with “B” and “C” like “A”,”A+B” and “A+C” then each account is eligible for separate deposit insurance of Rs. 1 lakh..
8.If depositor distributes the amount in the different branches of same bank,max deposit insurance will be Rs.1 Lakh combining all the accounts.
9.If depositor distributes the deposit amount in different banks then deposit insurance coverage available will be Rs 1Lakh per bank
10.List of listed banks,delisted banks is available on the website of DICGC.
If we take a little care while depositing money systematically,it will surely relieve you from psychological tensions in future.
