Is the deposit insurance of 1 lakh, per deposit or per individual (PAN)? If it is per deposit, would it be better to have for example 4 FDs of 1 lakh each instead of one FD of 4 lakh? (Of course it may be more hassle, but ignore that.)
It is per individual per bank. So if you open more than one FD or FD in different branches of the same bank, they would be combined together. Further its not just FD's – any amount in Savings/Current/Recurring accounts are also combined and the total insurance is Rs 1,00,000. This is for both principal and interest. So if you had a principal of 90,000 and an interest of 5,000 accrued not yet paid, you are insured for the entire 95,000.
The term individual is meant as in same capacity. Hence if you open one account in your name and another in your child's name with you as guardian, another with your wife as joint holder, all 3 accounts will be treated differently and you would be insured up to Rs 3,00,000.
Hence if you want more insurance, you should open accounts in different capacity and in different banks.
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