Anyone can open a savings account. In this, no limit has been set regarding maximum balance. However, if more money is deposited in your savings account than the limit, it has to be immediately reported to the Income Tax Department. If you do not do this, you may have to face problems later.
Savings Account: At present, everyone has at least one savings account. This gives you a lot of convenience in managing your finances. It is very easy to deposit and withdraw money in this. This is the reason why most of the people complete their daily banking related work through this. After the introduction of online payment and UPI facility in the country, its use has increased even more. But do you know that some limits have been set by Income Tax for savings account also.
Let us tell you that if you have a savings account in any bank, you can deposit and withdraw money from it anytime. Apart from this, many facilities are provided to you by the bank and it also has some limits. Let us know how much money you can deposit in a savings account.
How much money can be deposited in savings account?
Different types of facilities are provided by different banks with savings account. Most of the people do most of their banking related work through savings account. However, in most of the banks, no limit has been set regarding the maximum amount deposited in the savings account. But if you deposit more than Rs 10 lakh in your savings account, it is necessary to inform the Income Tax Department. The same rule also applies to investments made in fixed deposits, mutual funds, bonds and shares.
Tax is levied on savings account interest
You also have to pay tax on the interest received on the amount deposited in your savings account in a financial year. Under the Income Tax Act, any individual account holder has to pay tax if he gets more than Rs 10,000 interest on savings account in a financial year. Senior citizens have been given a rebate of up to Rs 50,000. Apart from this, you also have to pay tax on linking your savings account to any other income source.
How much interest is given on deposits in savings account?
Major public and private sectors of the country pay interest on deposits in savings accounts ranging from 2.70 percent to 4 percent. The interest rate on balance up to Rs 10 crore deposited in savings account is 2.70 percent and on the amount more than Rs 10 crore, this rate is 3 percent. However, some small finance banks also give you up to 7 percent interest on savings account with conditions.
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