New Delhi : People are often confused about how much money they can keep in a bank account. At the same time, some people also feel that more than 5 lakh cash cannot be kept in the bank. You must have heard someone saying like this that you should not keep much money in the bank, but if you ask them the reason for that, then they will definitely not be able to tell.
In fact, the truth is that there are many apprehensions in the minds of people regarding keeping money in banks. Some people think that if you keep more money in the bank, then the income tax will send a notice to them. Although there is no such rule. You can keep as much money in your bank account as you want. In case of bank sinking or bankruptcy, the rule says that the government will give you five lakh rupees.
Can hold cash more than five lakhs or not
Some people also say that more than five lakh rupees should not be deposited in the bank, although there is no such rule. You can keep as much money in your bank account as you want.
In case of bank sinking or bankruptcy, the rule says that the government will give you five lakh rupees, that is, the bank has a guarantee of security up to five lakh rupees. If you have five lakh rupees deposited in your bank account and the concerned bank becomes insolvent then your five lakh rupees will be completely safe. Perhaps because of this people would think that not more than five lakh rupees should be kept in the bank.
There are also disadvantages of keeping more money in the bank
However, keeping more money in the bank also has some disadvantages. First of all, due to excess money in the account, you can come in the eyes of income tax. But there is no need to worry about it. Income tax notice will come on your money only if the source of that money is not known. Therefore, you have to keep complete details of your money deposited in the bank, where did the money come from, how it got deposited in your account.
Income tax department will have to tell the source
If you have more money in your bank account and you are not able to prove the source of that money in front of Income Tax, then problems can arise. Your bank account can therefore be frozen, action can be taken against you.
Not get much interest
One of the disadvantages of keeping more money in a savings account is that the interest on deposits is less. In such a situation, there is no use of depositing more money in the bank. Experts say that it would be better to make fixed deposits or invest those money in mutual funds. Interest will be more on this, that is, you will get more profit. Therefore, before keeping more money in the bank, think carefully once, so that there should be no loss.