How Many FDs Can You Have? (2024)

The simple answer to this question is ‘Yes’. You can open as many Fixed Deposit accounts as you want with a single bank or multiple banks, as per your financial requirements. Not all investors want to invest in assets that are risky in nature, like mutual funds, cryptocurrencies, stocks, and more. Fixed Deposits, on the other hand, help a user to make safe investments that provide assured, risk-free returns

You can also have two or more FDs in the same bank as there is no limit to the number of fixed deposit accounts you can have. However, if you are planning on opening an FD account with different banks, the minimum deposit amount varies from one bank to the other. It can range anywhere from ₹1,000 to ₹15,000 depending on the issuer you choose. One of the major perks of investing in multiple fixed deposits is that it diversifies your FD investments, meaning you can easily remove money from a single Fixed Deposit account and all your other accounts will continue to earn interest for you.

In a Fixed Deposit account, you need to invest a lump sum amount right at the beginning for a fixed tenor. As FDs are one-time investment schemes, monthly deposits are not an option. For monthly deposits, many investors look for aSystematic Deposit Planor Recurring Deposit schemes. However, you can invest money into multiple Fixed Deposits every month as there is no limit of how many FDs one can create.

As per the Income Tax Act, 1961, interest earned from fixed deposits is fully taxable. However, for senior citizens, interest income up to ₹50,000does not attract TDS (tax deducted at source). The same is capped at ₹40,000for non-senior citizens. However, investors can opt for a tax-saving fixed deposit (FD) account. Under Section 80C of the Income Tax Act, such FDs will help you to claim a maximum deduction of ₹1.5 lakh per financial year. The minimum tenor for atax-saving fixed deposit(FD) account is5 years. Thus, you can invest in multiple tax-saving FD accounts each with a 5-year-long tenor. However, remember that the maximum deduction is capped at ₹1.5 lakh.

This is quite a common question asked by several investors. As per a famous investment quote, you must "never put all your eggs in a single basket". In simple terms, having multiple Fixed Deposits spread across different banks will help you achieve the right balance between risk and returns. Also, multiple small fixed deposits will ensure that you do not cross the TDS threshold applicable on interest income from FD.

You can opt for aBajaj Finance Fixed Depositas it enables you to earn greater returns with a higher interest rate. You can also leverage the benefits of flexible tenor and easy online application process to start investing with just ₹15,000. Bajaj Markets offers various Bajaj Finance Fixed Deposit schemes that will fit perfectly with your investment plans. Apply for a Bajaj Finance FD on Bajaj Markets today!

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