cash : Have an SBI or Canara Bank Account? Here’s How Your ₹1 Lakh Deposit Can Work for You!

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cash : Have an SBI or Canara Bank Account? Here’s How Your ₹1 Lakh Deposit Can Work for You!

If you hold an account with State Bank of India (SBI) or Canara Bank, your money is not just sitting idle — it’s working silently to give you financial benefits, secure access to credit, and peace of mind. A deposit of ₹1 lakh can offer more than you may realize, from interest earnings to loan eligibility, and even insurance protection.

In this blog, we explain how depositing ₹1 lakh in these two major public sector banks can be a smart financial move.

1. Where Can You Deposit ₹1 Lakh?

Both SBI and Canara Bank offer multiple types of deposit accounts where you can place your money:

  • Savings Account: Offers liquidity and basic interest.

  • Fixed Deposit (FD): Provides higher interest for locking in funds for a set period.

  • Recurring Deposit (RD): Allows monthly savings that grow with compound interest.

  • Current Account: Ideal for businesses (note: no interest on balance).

2. Interest Earnings on ₹1 Lakh

SBI Savings Account

  • Interest Rate: Approx. 2.70% p.a.

  • Monthly Interest: Around ₹225

Canara Bank Savings Account

  • Interest Rate: Around 2.90% to 3.00% p.a.

  • Monthly Interest: ₹240 to ₹250

💡 Tip: For higher returns, consider converting your savings into a Fixed Deposit, where interest rates range from 6% to 7.5%, especially for senior citizens.

3. Your Money is Insured — DICGC Protection

Worried about bank failures? Don’t be.

Deposits in both banks are covered under DICGC (Deposit Insurance and Credit Guarantee Corporation), ensuring safety up to:

  • ₹5 lakh per account holder per bank (includes principal + interest)

Applicable to:

  • Savings accounts

  • FDs

  • RDs

  • Current accounts

 That means your ₹1 lakh is 100% secure, even if the bank runs into trouble.

4. PAN Card Rules & Tax Implications

  • PAN is required for cash deposits over ₹50,000 at once.

  • If your total annual interest crosses:

    • ₹40,000 (for regular customers)

    • ₹50,000 (for senior citizens)
      then 10% TDS will be deducted.

📝 To avoid TDS, submit:

  • Form 15G (for individuals)

  • Form 15H (for senior citizens)
    if your income is below the taxable limit.

5. Minimum Balance Rules – Avoid Penalties

SBI Savings Account

  • Urban: ₹3,000 minimum balance

  • Rural/Semi-urban: ₹1,000–₹2,000

  • Penalty: ₹10–₹15 + GST for non-maintenance

Canara Bank Savings Account

  • Minimum Balance: ₹500–₹1,000 (based on location)

With ₹1 lakh in your account, you’ll automatically meet minimum balance criteria and avoid unnecessary charges.

6. Extra Benefits of Maintaining ₹1 Lakh

Depositing and maintaining a high balance can unlock hidden perks:

  • Pre-approved loans & credit cards

  • Faster customer service or priority banking

  • Fee waivers on ATM, chequebooks, and DDs

  • Overdraft facility secured against your deposit

  • Higher daily transaction limits for NEFT, IMPS, and ATM withdrawals

7. Secure Digital Banking Access

Both SBI and Canara Bank offer robust and user-friendly digital services:

  • Mobile Banking Apps: Check balance, pay bills, transfer funds.

  • UPI & Internet Banking: Fast and safe online transactions.

  • Cybersecurity Tips:

    • Never share OTPs or passwords.

    • Use only official apps.

    • Enable two-factor authentication.

    • Regularly check alerts for suspicious activity.

Final Words: ₹1 Lakh is More Than Just Money

Depositing ₹1 lakh in your SBI or Canara Bank account is not just a safe option — it’s a smart financial step. It earns interest, keeps your funds protected under government insurance, and makes you eligible for a variety of banking benefits. Plus, it helps you build a solid financial profile that may help you access loans and credit cards when needed.