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Savings Account Cash Limit: Most of the people in the country have a bank account. Most of the economic activities of the people are conducted through these bank accounts. Most of these people know about the minimum balance of the account. But, apart from this, there are dozens of rules related to bank account which you should know about. There are many things like maximum limit of cash deposit in the account, charges for ATM-debit cards, charges for cheques… etc. The Reserve Bank of India (RBI) has issued detailed guidelines regarding all these things.
Before coming to the maximum amount that can be kept in the account, we would like to tell you that in every case you have to keep a minimum amount in your account. If the minimum amount is not maintained, the bank deducts penalty charge. Different banks have set their own minimum balance limits. In some cases the minimum balance limit is Rs 1,000 and in some it is Rs 10,000.
cash deposit limit
There is also a limit for depositing cash in these savings accounts. According to income tax rules, a person can deposit a maximum of Rs 10 lakh in cash in his savings account in a financial year. If more cash is deposited than this, banks have to give information about that transaction to the Income Tax Department. Along with this, when you deposit 50 thousand rupees or more cash in your account, you will also have to provide PAN number along with it. You can deposit cash up to Rs 1 lakh in a day. Also, if you do not deposit cash in your account regularly then this limit can go up to Rs 2.50 lakh.
10 lakh limit!
If you deposit cash in your account in excess of the Rs 10 lakh limit and do not provide satisfactory information about its source in the income tax return, scrutiny is possible. If you are caught in this investigation, you will be fined heavily. If you do not disclose the source of income, then 60 percent tax, 25 percent surcharge and 4 percent cess may be levied on the deposit amount.
Now coming to the point. Actually, we all deposit money in savings account to keep our earnings safe. In such a situation, its maximum limit is not fixed. But, it is certain that if you keep more money in the account and do not disclose the source of its arrival, then it is possible that it may come under the scrutiny of the Income Tax Department. If the source of the influx is clear then you do not need to be afraid.
Secondly, if you have kept a lot of money in your savings account then you should convert it into fixed deposit. This will give you a fair return on your money. Very nominal returns are received on money deposited in savings account. Banks have deposit schemes ranging from short term to long term i.e. from a minimum of seven days to tens of years. With this you will get good returns on your money.
