Is your money safe in bank? Which bank is safe for fixed deposits?

The topic discusses that is your money safe in bank? Most of indians give importance on safety so we mostly prefer bank to save our money and also like to store our money bank. But after PMC bank crisis a question is obviously come to our head that is my money safe in bank? You hear surely that the maximum withdrawal limit of PMC bank is 10000 rupees. It means if you have 2 lakh rupees in pmc bank account but yet you can withdraw only maximum 10000 rupees.

For this money of many people is stuck. In this case there is a chance of fraud by bank’s top management with HDIL(real estate company). Here people have no fault but yet they are facing problems. After pmc bank yes bank was also in news because their bad loans were rapidly increasing. On this time people have a question on their mind that should they withdraw their money from yes bank? So let’s start discussion(is your money safe in bank in india?).

Is your money safe in bank?

Goverment starts Deposit Insurance Scheme for the money that people deposit in bank. And the scheme is applicable for all banks which is under RBI. The scheme is managed by Deposit Insurance and Credit Guarantee Insurance Corporation. Now maxium 1 lakh rupees insurance is covered by the scheme. It means your maxium 1 lakh rupees in bank is insured yet you have more than 1 lakh rupees. If any bank become bankrupt then you can get maximum 1 lakh rupees covered by the scheme. And the insurance scheme is not available in co-operative banks. So any co-operative bank become bankrupt then you can not get the 1 lakh insurance. 

The deposit insurance scheme started in 1968 and then the insurance amount was maximum 5000 rupees. And after some year the insurance amount was done 10 thousand rupees. In 1976 the value of insured amount was done 20 thousand rupees. And in 1980 the limit of insured amount was increased and the amount was 30 thousand rupees. And finally the deposit insurance amount was done 1 lakh rupees in 1993.

And the amount is still remain still then. So your maxium 1 lakh rupees is covered by the scheme if the bank become bankrupt and the bank is under RBI. The insurance amount is not increased from last 27 years. In last 27 years the value of money is decreasing by inflation but the deposit insurance amount is not increased on this way.

Which bank is safe for fixed deposits?

Most of indians thinks the bank safe and they prefer the bank to deposit their money. For that reason the deposit insurance amount should be increased. Because people do not feel safe to store their money in bank then itis not good for economy. Then what is the solution of it? In which bank you should deposit your money to keep safe? The first thing is that you should not panic because it is not mandatory to happen with all banks such as happened with pmc bank. Generally goverment do not fail the big banks. Goverment bell out the big banks when they face problems. Goverment save the bank depositing public’s fund. 

If you deposit money or do fixed deposits then you obviously prefer the big banks. Because the large banks do not fail easily and also government bell out them. In most cases small banks or co-operative banks offer big interest but removing the greedy you should prefer the bank which give you safety and good returns. As you know maximum 1 lakh rupees is covered by insurance scheme. Then it is good to deposit money or fixed deposits in different banks upto 1 lakh rupees. So generally you can prefer two or three banks so that the risk is diversified. All the things that was happened with pmc bank was the fault of bank’s management.

And RBI was also a culprit in this case. And it is quite suprising of limited withdraw of 10 thousand rupees. So for this people raise their fingers on banking system. Now RBI should give confidence to people and take right decision to the depositor of pmc bank. Because banking system plays a great role for india’s economy and companies get most of fund from banks.

And the money mainly comes to bank by the depositors. So if depositors do not deposit their money on bank then companies do not get fund from bank and its direct effect fall on india’s economy. So if you withdraw money from bank and store it in home then it is obviously bad for india’s economy. So you should deposit your money in banks means large banks(HDFC bank,SBI etc.) that is safe.

You can withdraw your money from bank if you see the bank is facing problems but it is not a right decision not to deposit your money in bank. So indians should aware of it and take participate to invest in stock market,,,mutual fund  and ETF etc so that the economy can get a boost. It is obviously best for you to keep distance from co-operative banks.

If you find a better option than fixed deposits then you should invest in government bonds. Govenrment bonds are safe. It is one type of instrument that is known for safety and security. The bonds that government issue gives the guarantee of safety. So you can get good returns,tax benefits ans also safety. So you can think to invest in government bonds.

 If you have any query related to is your money safe in bank or banking system please comment below so that the topic of is your money safe in bank can be covered.

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