Money Clarity

Is my FD insured? How DICGC deposit insurance works

Most people know bank deposits are insured up to ₹5 lakh. Fewer know how that ₹5 lakh is counted, and the counting decides how much of their money is actually covered. The limit is per depositor per bank, not per account or per FD; it includes the interest, not just the principal; and accounts held in different capacities are counted separately.

So a family with ₹12 lakh in one bank may have ₹7 lakh uninsured, while the same ₹12 lakh arranged differently can be fully covered. Nothing about the bank changes; only the arrangement does.

This page explains the rules from DICGC's own guide and works through how to arrange deposits so the cover reaches all of them.

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Last reviewed 2026-11-01

What DICGC covers, and what it does not

DICGC, the Deposit Insurance and Credit Guarantee Corporation, is a subsidiary of the RBI. It insures each depositor up to ₹5 lakh, principal and interest together, per bank. The cover applies to savings, fixed, current and recurring deposits at all commercial banks including foreign bank branches in India, regional rural banks, local area banks and co-operative banks. DICGC's 2025-26 annual report confirms the limit was unchanged that year; it has been ₹5 lakh since February 2020.

Its guide is just as clear about what is not covered: deposits mobilised by NBFCs, and mutual funds, stocks and bonds, among others. A bond issued by a bank is not a deposit, so it is not covered either.

Covered	Not covered
Savings accounts	NBFC deposits
Fixed and recurring deposits	Bonds, including bonds issued by banks
Current accounts	Mutual funds and stocks
At commercial, foreign, regional rural, co-operative banks	Primary co-operative societies

Source: DICGC, A Guide to Deposit Insurance.

Interest counts towards the ₹5 lakh. A ₹5 lakh FD that has earned interest is already slightly over the limit

How the ₹5 lakh is counted

The technique

Count per depositor, per bank, per capacity

DICGC adds up all your deposits at one bank, across all its branches, in the same capacity, and insures the total up to ₹5 lakh. The same person's deposits at another bank, or held in a different capacity, are counted separately.

Three rules decide coverage. All your deposits at one bank, across its branches, are added together. Deposits at different banks are insured separately, even if both banks fail on the same day. And deposits held in a different capacity or right, such as a joint account with names in a different order, or an account held as guardian, are insured separately from your own.

The last rule is the one most families can use. A joint account in the names of Vikram and Neha is one capacity. A joint account in the names of Neha and Vikram, in that order, is another, and gets its own ₹5 lakh.

Opening several FDs in your own name at the same bank does not add cover. They are added together

One family's ₹12 lakh, arranged three ways

Vikram and Neha have ₹12 lakh to put in fixed deposits. Arranged three ways, the same money is insured very differently.

Arrangement	Insured	Uninsured
All ₹12 lakh in Vikram's name at one bank	₹5 lakh	₹7 lakh
₹4 lakh each at three different banks, Vikram's name	₹12 lakh	₹0
At one bank: ₹4 lakh Vikram, ₹4 lakh Neha, ₹4 lakh joint (Vikram first)	₹12 lakh	₹0

Illustrative. Keep each insured block a little under ₹5 lakh so interest does not take it over the limit.

The cheapest protection is arrangement. Splitting by bank or by holder costs nothing and can bring every rupee under cover
Leave headroom for interest: ₹4.5 lakh at 7% passes ₹5 lakh, principal plus interest, in under two years

What happens if a bank fails

If a bank is liquidated, or the RBI places it under certain restrictions, DICGC pays insured depositors up to the limit. The guide notes that deposits at different banks are insured separately even if both close on the same day. Amounts above ₹5 lakh are recovered, if at all, from what the bank's assets fetch, which can take years.

In practice most troubled banks are merged or rescued and depositors lose nothing. The insurance matters for the case where they are not, which is why money you cannot afford to wait for should sit within the limit.

Your emergency fund should be fully insured, which in practice means within ₹5 lakh, interest included, at any one bank

Checking your own cover

Ten minutes with your bank statements answers the question for your own money.

List every account and FD by bank, with the current balance including accrued interest
Add them up per bank and per capacity: your own, each joint combination, any guardian accounts
Anything above ₹5 lakh in one bank and capacity is uninsured; move the excess to another bank or holder
Remember that bonds, NBFC FDs and mutual funds are outside this cover altogether

Common questions

How much of my FD is insured in India?

Up to ₹5 lakh per depositor per bank, principal and interest together, through DICGC. All your deposits at that bank, across branches and accounts, are added together. Deposits at a different bank are insured separately.

Are joint accounts insured separately by DICGC?

A joint account with the same names in the same order is one capacity and shares one ₹5 lakh limit. A joint account with names in a different order, or with different holders, is insured separately, as are accounts held as guardian, partner or director.

Is my FD safe if the bank fails?

Up to ₹5 lakh per depositor per bank, yes: DICGC pays insured depositors. Above that, recovery depends on what the bank's assets fetch. NBFC FDs and bonds, including bank bonds, have no DICGC cover.

Is the DICGC limit still ₹5 lakh?

Yes. DICGC's guide states a maximum of ₹5 lakh per depositor per bank, and its 2025-26 annual report says the coverage limit was unchanged during the year. It has been ₹5 lakh since February 2020.

DICGC insures ₹5 lakh per depositor per bank, principal and interest together, across all branches of that bank; deposits at other banks or held in a different capacity are counted separately. NBFC deposits and bonds are not covered. Of ₹12 lakh in one name at one bank, ₹7 lakh is uninsured; split across banks or holders, all of it can be covered at no cost.

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