How many FDs can I open?

Generally, there is no limit on the number of fixed deposit (FD) accounts a customer can open with a financial institution. However, the following points are important to consider for each FD:

• Minimum Investment: Each FD must meet the minimum investment criteria set by the institution, which typically ranges from ₹5,000 to ₹10,000*
• KYC Compliance: Your Know Your Customer (KYC) documentation is mandatory for all types of FD accounts.
• PAN Requirement: As per income tax regulations, your Permanent Account Number (PAN) is mandatory for all FDs if the total annual interest income from the institution is expected to exceed the prescribed limit.
• Account Management: It is advisable to manage and track each FD separately, including its tenure, interest rate, and maturity date.
• Potential Internal Limits: While uncommon for larger banks, some smaller financial institutions might have internal limits on the number of accounts per customer due to operational factors.
• Taxation: The interest earned from all your FDs is considered part of your taxable income.

To sum it up, you can open multiple FDs as long as you fulfil the individual requirements for each account. Each FD is treated as a distinct investment with its own terms.

While most financial institutions do not impose a cap on the number of FDs, some may have internal policies or operational considerations that limit the number of accounts per customer.