What is the maximum FD limit?

There is no maximum limit set by the Reserve Bank of India (RBI) for fixed deposits (FDs) in India. Customers can invest as much as they want in FDs. However, financial institutions may implement some internal limits or certain conditions for investing very large FD amounts:

1. For most individual customers, there is no upper ceiling for investing in FDs across multiple financial institutions.
2. Financial institutions may ask for a declaration of the source of funds if the FD amount is unusually high.
3. Some financial institutions have internal caps per entity for non-individual customers, such as companies, trusts, etc.
4. Instead of keeping a very high amount blocked in one financial institution, it is advised to diversify across multiple FDs.
5. The interest earned gets accrued and compounded with the principal amount annually. It is reinvested and paid out on maturity, along with the original principal FD amount.