Have an SBI or Canara Bank Account ? Here’s How You Can Benefit from ₹1 Lakh – Know the Full Details!

Have an SBI or Canara Bank Account ? Here’s How You Can Benefit from ₹1 Lakh – Know the Full Details!

If you’re an account holder with State Bank of India (SBI) or Canara Bank, here’s some good news: Your ₹1 lakh deposit isn’t just sitting idle — it comes with multiple benefits, safety assurances, and even potential loan access.

Here’s a comprehensive breakdown of what you gain when you deposit ₹1 lakh in either of these two major public sector banks in India.

1. Where Can You Deposit ₹1 Lakh?

Both SBI and Canara Bank allow deposits of ₹1 lakh across a range of account types:

2. How Much Interest Do You Earn on ₹1 Lakh?

SBI Savings Account:

  • Interest Rate: ~2.70% per annum

  • Monthly Interest: Approx. ₹225

Canara Bank Savings Account:

  • Interest Rate: ~2.90% to 3.00% per annum

  • Monthly Interest: ₹240 to ₹250

Tip: To earn higher returns, consider converting excess savings into a Fixed Deposit, where interest rates range from 6% to 7.5%, depending on the tenure and customer type (senior citizens often receive more).

3. Your Money is Safe – DICGC Insurance Explained

Both SBI and Canara Bank deposits are insured under the Deposit Insurance and Credit Guarantee Corporation (DICGC).

  • Coverage: Up to ₹5 lakh per account holder per bank (includes principal + interest).

  • Applies to:

    • Savings Accounts

    • FDs

    • RDs

    • Current Accounts

 This means your ₹1 lakh is 100% safe, even in the rare event of a bank failure.

4. PAN Card Rules and Tax Implications

  • PAN Card Requirement: Needed if you deposit more than ₹50,000 in cash at once.

  • TDS on Interest:

    • If total annual interest exceeds ₹40,000 (₹50,000 for senior citizens), 10% TDS will be deducted by the bank.

  • Avoiding TDS:

    • Submit Form 15G (for individuals) or 15H (for senior citizens) if your annual income is below the taxable limit.

5. Minimum Balance Rules & Charges

SBI Savings Account:

  • Urban Areas: ₹3,000 minimum

  • Rural/Semi-urban: ₹1,000–₹2,000

  • Penalty: ₹10–₹15 + GST (if balance drops below the limit)

Canara Bank Savings Account:

  • Minimum balance: ₹500–₹1,000 depending on location

  • Non-maintenance charges: Similar to SBI

 With ₹1 lakh in your account, you easily maintain the minimum balance and avoid any penalties.

6. Additional Benefits of Maintaining ₹1 Lakh in Your Account

Having a higher account balance can offer several hidden advantages:

  • Eligibility for Pre-approved Loans: Banks may offer you pre-approved personal loans or credit cards.

  • Priority Banking Services: High-balance customers may receive better or faster service.

  • Fee Waivers: Charges for services like cheque books, ATM withdrawals, or DDs may be waived.

  • Overdraft Facility: You could be eligible for a secured overdraft against your deposit.

  • Increased Transaction Limits: You may get higher daily limits for NEFT, UPI, and ATM withdrawals.

✅ SBI Loan ✅

✅ Canara Bank Loan ✅ 

7. Digital Banking: Safe, Smart & Convenient

Both SBI and Canara Bank offer secure and advanced digital services:

  • Mobile Banking: Apps allow easy fund transfers, balance checks, bill payments, and more.

  • UPI & Internet Banking: Fast and secure money transfers, even to other bank accounts.

  • Cybersecurity Tips:

    • Never share your OTPs or passwords.

    • Enable two-factor authentication.

    • Use official apps only from trusted sources (Google Play Store, App Store).

    • Regularly monitor your SMS/email alerts for suspicious activity.

Conclusion: ₹1 Lakh in Your Bank is More Than Just Money

Depositing ₹1 lakh in your SBI or Canara Bank account is not just about storing cash — it’s a smart financial move that:

  • Keeps your money safe and insured

  • Earns you interest

  • Gives you access to credit, benefits, and digital services

  • Helps you build a healthy banking profile

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