Insurance cover of 5 lakhs for bank deposits

Querist : Anonymous (Querist) 15 February 2020 This query is : Resolved
I have joint saving bank account with my wife on Either or Survivor basis. we have been given two separate customer IDs. We are holding Two Separate FDs of 5 lakh each......

I have one FD for 5 Lakhs in which I am the first Holder (Primary) and my wife is second holder (Secondary) with my PAN Number.

In second FD of 5 Lakhs my wife is the first holder (Primary) and am second holder
( secondary) with her PAN Number.

Does the insurance cover of 5 Lakh is covered for each FD or for both the FDs.

Pleasw give me clarification. Both, my wife and I are Senior Citizens and are worried about safety since lot of scams are taking place in banking sector.

Also clarify whether this insurance cover applies for Private. Public and cooperative Banks.

Thanks.

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Quick Summary

This discussion clarifies the Rs 5 lakh deposit insurance cover for bank accounts, particularly for joint accounts and Fixed Deposits (FDs). The insurance limit has been raised to Rs 5 lakh per depositor, and it generally applies to savings, fixed, current, and recurring deposits across public, private, and cooperative banks. For joint accounts, each individual is typically covered up to the limit, meaning two separate FDs of Rs 5 lakh each in a joint account could be covered.

Advocate Suneel Moudgil (Expert) 15 February 2020
1. if you are asking about the new provision introduced in the budget then you both are separately entitled to the scheme,

KISHAN DUTT KALASKAR (Expert) 15 February 2020
Dear Sir,
Insurance covering depends upon the terms and clauses mentioned in the insurance policy. You need not worry about the safety of your FD’s. It is better to approach the Bankers and disclose your identity and ask them not to release FD’s to any other person except you.

Raj Kumar Makkad (Expert) 15 February 2020
The terms and conditions prevailing at the time of making of FDs are final and subsequent provisions introduced in the budget has no bearing in your case. It shall be better to personally visit the bank with the copy of mentioned FDs and clarify your suspicion from there as our reply shal be based upon surmises and conjectures which shall have no use for you.

T. Kalaiselvan, Advocate (Expert) 16 February 2020
Depositors may heave a sigh of relief as the government has raised the deposit insurance limit five-fold to Rs 5 lakhs after twenty seven years.
The Corporation insures all bank deposits, such as savings, fixed, current as well as recurring deposits.
The Deposit Insurance and Credit Guarantee Corporation (DICGC) has been permitted to increase Deposit Insurance Coverage for a depositor, which is now ` one lakh to ` five lakh per depositor”

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