Tips for Smart Account Management


If you have a savings or a fixed deposit account in a bank, you should make sure it has sufficient funds. To ensure the same, you must know how to handle those accounts. If the bank where you have your account collapses, you are eligible to get Rs.1 lakh compensation from it. If you handle the accounts tactfully, you can even get over Rs.1 lakh. 

1. DICGC

‘Deposit Insurance and Credit Guarantee Corporation’ or DICGC includes all the banks in India under its purview. It includes branches of foreign banks too and provides you Rs.1 lakh for your account in case the bank collapses. If a bank does not pay the premium for three straight years, the DICGC takes away its insurance cover. Ensure your bank is covered by DICGC.

2. How can you increase your claim?

There are many ways to increase the amount that DICGC compensates you once a bank covered by them collapses. As you get Rs.1 lakh for every account from the defaulting bank, if you have multiple accounts with that bank, the compensation you receive will be higher. You will receive Rs.1 lakh for every account you hold. However, you need to understand that some accounts are linked. Hence, you have to find the right combination of account holding for you to receive a higher amount. If you have a joint account with your wife in the bank, your personal account with the same bank will be counted as a different account. This way you can have two accounts in the same bank and get Rs.2 lakh if the bank collapses.     

3. The guardian account  

The combination of different accounts works in different cases. For example, if you have a personal account in a bank and you are the guardian for your child’s account in the same bank, they will be considered as two separate accounts. Just like in the previous scenario, you will get Rs.2 lakh if the bank collapses. If you have two joint accounts with different people, they too will be counted as separate accounts.

4. Things to remember

It is important to clear all your dues before claiming the amount. Even if the bank collapses, they have the full right to clear their dues from your account. To get your full amount, ensure you do not owe the bank, or anyone, any sum from that account. 



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