Is your money safe in a bank? DICGC ₹5 lakh deposit insurance explained
Opening three accounts at one bank does not give you three separate ₹5 lakh insurance limits. Use the SAFE framework to understand coverage and bank-level concentration.
Direct answer
Direct answer
DICGC insures eligible bank deposits up to ₹5 lakh per depositor per insured bank in the same right and capacity, including principal and accrued interest. Savings, current, fixed and recurring deposit balances at different branches of the same bank normally count together; eligible deposits at different insured banks receive separately applied limits.
Key takeaways
- • The ₹5 lakh ceiling includes principal and eligible accrued interest; it is not an amount per account.
- • Combine balances of accounts held in the same right and capacity across branches of one insured bank.
- • Different insured banks are separately assessed; ownership capacity can also change aggregation rules.
- • NBFC deposits, mutual funds, shares, bonds, ETFs and cryptocurrencies are not DICGC-insured bank deposits.
- • Insurance is a specific statutory backstop, not proof every financial product is risk-free or immediately liquid.
DeepScreen original framework
What this guide adds
The DeepScreen SAFE Bank-Cash Audit—Sum, Aggregate, Find coverage, Evaluate concentration—translates 'same right and capacity' rules into a practical household deposit map.
Exactly what does the ₹5 lakh insurance limit cover?
For qualifying balances, DICGC's maximum coverage is ₹5,00,000 per depositor per bank in the same right and capacity, counting principal and accrued interest together.
DICGC identifies savings, fixed, current and recurring deposits at insured banks as covered categories, subject to its exclusions. The relevant balance and coverage conditions depend on the statutory insurance event and any permitted adjustment for dues to the bank. [1][2]
For illustration, a ₹4,70,000 principal plus ₹20,000 accrued interest totals ₹4,90,000, within the monetary cap if otherwise eligible. A ₹5,00,000 principal plus ₹25,000 accrued interest totals ₹5,25,000, but the maximum admissible amount remains ₹5,00,000. [2]
DeepScreen SAFE Bank-Cash Audit
Sum account balances, Aggregate by bank and ownership capacity, Find insured eligibility, then Evaluate how concentrated your cash is.
DICGC warns that several accounts at one bank do not create independent limits if their ownership category is the same. Some joint, representative or other ownership capacities can be assessed separately; determine this from DICGC's definitions instead of relying on account nicknames. [2]
- • S — Sum: record every savings, current, fixed and recurring deposit along with accrued interest.
- • A — Aggregate: combine balances across branches of the same bank held in the same right and capacity.
- • F — Find coverage: verify the institution is an insured bank and the specific product is an eligible deposit.
- • E — Evaluate concentration: compare bank-level totals with applicable limits, liquidity needs and account terms.
Worked example: four accounts at two banks
Three personal accounts at Bank A can exceed the insured ceiling together even when each individual account is smaller than ₹5 lakh.
Because ₹1.8 lakh + ₹3.7 lakh + ₹0.8 lakh equals ₹6.3 lakh, Bank A's eligible personal deposits are aggregated. The separate ₹4.5 lakh deposit at insured Bank B is not added to Bank A's balance to determine Bank A coverage. [2]
This is not a recommendation to split deposits mechanically. Bank choice should also consider access, service, cash needs and applicable financial conditions. For joint accounts or trusts, consult DICGC's detailed capacity rules rather than applying this single-owner example.
| Holding | Balance | Insurance grouping |
|---|---|---|
| Bank A savings | ₹1,80,000 | Bank A personal |
| Bank A fixed deposit | ₹3,70,000 | Bank A personal |
| Bank A second-branch savings | ₹80,000 | Bank A personal |
| Bank A combined | ₹6,30,000 | Maximum ₹5,00,000 subject to eligibility |
| Bank B fixed deposit | ₹4,50,000 | Bank B assessed separately |
Method note: Real claim amounts also depend on cut-off balances, accrued interest, set-off of dues where applicable, capacity and DICGC eligibility. This is an educational illustration, not a promised payout.
Which investments and institutions are not covered by DICGC?
Deposit insurance is not a general investment guarantee.
DICGC's official guide excludes deposits mobilised by NBFCs and specifies that mutual funds, stocks and bonds, exchange-traded funds and cryptocurrencies are not covered by DICGC deposit insurance. That does not make all excluded assets inherently unsuitable; they operate under different risk and investor-protection arrangements. [1]
| Product | DICGC coverage? | What to check |
|---|---|---|
| Savings / fixed / current / recurring deposits at insured bank | Potentially, subject to rules | Bank identity, capacity, principal plus interest |
| NBFC deposit | No | Issuer creditworthiness and terms |
| Mutual fund or ETF | No | Fund mandate, assets and market risk |
| Shares / bonds | No | Market risk or issuer credit risk |
| Cryptocurrency | No | Custody, platform and price risk |
What does 'same right and same capacity' mean?
It describes the legal ownership category in which deposits are held; it is not simply the number of account numbers.
DICGC's FAQ explains that multiple individual accounts at one bank are combined. It also distinguishes balances held as guardian, partner, trustee or joint account holder, with capacity-sensitive rules for joint holder combinations and ordering. [2]
A sole-proprietor deposit and personal deposits can be aggregated under the FAQ's rules. Do not assume that registering a business name automatically doubles protection; confirm the legal capacity. [2]
What happens if an insured bank encounters a failure or restrictions?
The deposit-insurance process depends on the statutory trigger, claim information and the applicable scheme; the ₹5 lakh limit does not mean instant cash reimbursement in every scenario.
DICGC's FAQ outlines distinct arrangements for liquidation, reconstruction/amalgamation and certain RBI directions restricting withdrawals. Depositors should follow official DICGC, RBI and bank notices rather than social-media instructions to pay 'claim processing' fees. [2]
The premium for the deposit-insurance scheme is borne by the insured bank, not billed to depositors as an individual insurance purchase. [2]
Your ten-minute deposit-protection checklist
Map cash by bank and legal ownership before assuming it is insured.
- • List each bank, branch, deposit type, owner/capacity, principal and accrued interest.
- • Check the institution's DICGC-insured status if uncertain.
- • Group deposits in the same bank under the same right and capacity.
- • Compare each qualifying group with ₹5 lakh, including expected accrued interest.
- • Separate genuine bank deposits from mutual funds, NBFC products and securities.
- • Keep account documents and nominations up to date; review changes in deposit balances and ownership.
FAQ
Common questions
- Does every savings account receive ₹5 lakh DICGC insurance?
- No. Several accounts in the same bank and ownership capacity are aggregated; the limit is not per account.
- Are deposits in two different banks separately insured?
- DICGC states that deposits at different insured banks have separately applied coverage limits.
- Does the ₹5 lakh limit include interest?
- Yes. Principal and accrued interest are counted together, subject to the same maximum.
- Do fixed deposits and recurring deposits qualify?
- Eligible fixed and recurring deposits at insured banks are among the deposit types covered, subject to DICGC exclusions and grouping rules.
- Are mutual funds and ETFs covered by DICGC?
- No. DICGC expressly lists mutual funds and ETFs among products outside bank deposit insurance.
- Are NBFC deposits insured by DICGC?
- No. DICGC's guide excludes deposits mobilised by non-banking financial companies.
- Will separating accounts into different branches increase coverage?
- Not for deposits held in the same right and capacity at one bank; DICGC aggregates them across branches.
Continue your research
Sources
References
- [1] A Guide to Deposit Insurance: What's Covered and What's Not · Deposit Insurance and Credit Guarantee Corporation · accessed 7 October 2026. Primary/source page
- [2] DICGC Frequently Asked Questions: Maximum Coverage, Branch Aggregation and Ownership Capacity · Deposit Insurance and Credit Guarantee Corporation · accessed 7 October 2026. Primary/source page
- [3] DICGC Information Booklet · Deposit Insurance and Credit Guarantee Corporation · accessed 7 October 2026. Primary/source page
Editorial disclosure
DeepScreen is a financial-research platform. This article is educational and is not personalized investment, tax or legal advice. Market data, regulations, contract specifications and issuer disclosures can change; verify the latest exchange, issuer and regulator material before acting.
Author: Sooraj, Founder of DeepScreen. Facts were checked against the cited regulator, exchange, industry-association and issuer sources on 7 October 2026. No independent credentialed reviewer has been claimed.