Don't Put All Your Eggs in One Basket: DICGC's 5 Lakh Rule Explained

• Depositing over 5 lakh rupees in a single bank can be risky due to DICGC's insurance limit.
• DICGC, an RBI subsidiary, insures bank deposits up to 5 lakh rupees (principal + interest) per customer per bank.
• Splitting deposits across multiple banks ensures each bank's deposit is covered up to 5 lakh, maximizing total insured amount.
• The 5 lakh cover applies to Savings, Current, FD, and RD accounts, regardless of the number of accounts in one bank.
• This strategy protects savings from bank failures and allows for potentially higher interest rates from different banks.