Cash Deposit Limit in Saving Account (2024)

3 min read Dec 21, 2023

Cash deposit limit in Savings Account explained

Depositing funds into your Savings Account is an essential step towards building savings securely. Besides bank transfers and depositing cheques, deposits in the form of cash are another way to increase your bank balance. Rather than keeping cash stored at home, depositing it into your savings account is prudent. A cash deposit limit refers to the maximum amount of funds you can deposit into your account in one day.

Also Read: 6 things to consider before opening a Savings Account

Cash deposit limit in your Savings Account

If you are wondering how much cash can be deposited in your Savings Account, you are in the right place. As per the Reserve Bank of India (RBI) guidelines, you can deposit up to ₹50,000 into your Savings Account without furnishing your PAN card details. However, if you want to deposit a higher amount, you will need to provide your PAN card details.

The cash limit set per day, per transaction, and from one person is ₹2 lakhs. On the other hand, the cash deposit limit in a Savings Account per financial year is set at ₹10 lakhs. Your bank will report a transaction that exceeds this limit to Income Tax authorities.

Also Read: Savings Account uses you might not know about

Tax rules for cash deposits in your bank account

The RBI has set a Savings Account deposit limit of ₹10 lakhs per financial year. If your cash deposits exceed this amount, then you may receive a notice from the Income Tax Department, flagging your transactions. However, the amount is not directly taxed.

You will need to file your returns, clearly mention your source of income, and pay taxes as per the relevant income bracket. If you are unable to verify the source of funds, then the Income Tax Department, under Section 68 of the Income Tax Act, can impose a 60% tax, plus a 25% surcharge and a 4% cess on the deposited amount.

Rules for cash deposits in Savings Account

Here is a quick summary of the rules for your Savings Account maximum deposit:

You don't need to furnish PAN card details to your bank for a cash deposit of up to ₹50,000.
For deposits above ₹50,000, you need to furnish PAN card details.
Suppose you make a maximum deposit in a Savings Account of ₹2 lakhs or more in a single transaction, in aggregate from a single person, or in a day. Under Section 269ST, a 100% penalty is applied.
The maximum amount in your Savings Account you can deposit in cash per year is ₹10 lakhs.

Rules for large deposits in Savings Accounts

If you make a cash deposit of ₹10 lakhs and above in a financial year, then in all probability, your bank may notify the Income Tax authorities. In such a case, you may receive a notice from the IT department, which will want to know the source of the income. You will need to declare the source of funds when filing your returns, and you will be taxed as per your income bracket.

Other cash transaction limits

The cash withdrawal limit of a Savings Account per day varies from bank to bank. Typically, a more premium account allows you to withdraw a higher limit. Your bank may also have a monthly withdrawal limit. Be sure to know the rules well when choosing the right Savings Account for you.

Also Read: 10 benefits of opening an Axis Bank Digital Savings Account

Conclusion

It’s essential to know the various rules that apply to any financial product, from maximum deposit in a Savings Account to cash withdrawal limits. Axis Bank offers a spectrum of Savings Accounts to suit every income, lifestyle and profile. You can activate your account with a paperless onboarding process and a seamless video Know Your Customer (KYC) process. Access a Debit Card, other services, a rewards programme, and exclusive deals with your Axis Bank Savings Account.

Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision

Cash Deposit Limit in Saving Account (2024)

FAQs

How much cash can I deposit without being questioned? ›

A cash deposit of more than $10,000 into your bank account requires special handling. The IRS requires banks and businesses to file Form 8300, the Currency Transaction Report, if they receive cash payments over $10,000. Depositing more than $10,000 will not result in immediate questioning from authorities, however.

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Is there any limit for cash deposit in a savings account? ›

Cash Deposit Limits in a Savings Account

A common daily cash deposit limit in savings accounts is ₹50,000 and any amount higher than this requires your PAN details or Form 60/61 in case you do not have a PAN card. Depositing cash above the limit of ₹1 lakh may attract the attention of the Income Tax department.

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How much cash can I put in my savings account? ›

You can generally deposit as much as you want at a bank or other financial institution, but some banks may have extra rules and restrictions due to federal law and bank policy. For example, ATMs can limit the amount of bills you can deposit.

Is it okay to deposit $3,000 in cash? ›

When it comes to cash deposits being reported to the IRS, $10,000 is the magic number. Whenever you deposit cash payments from a customer totaling $10,000, the bank will report them to the IRS. This can be in the form of a single transaction or multiple related payments over the year that add up to $10,000.

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Is depositing $2000 in cash suspicious? ›

In the United States, when individuals or businesses deposit $10,000 or more in cash with a bank or financial institution, it triggers a mandatory report to the Financial Crimes Enforcement Network (FinCEN), as mandated by the Bank Secrecy Act.

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What is the $3000 rule? ›

Rule. The requirement that financial institutions verify and record the identity of each cash purchaser of money orders and bank, cashier's, and traveler's checks in excess of $3,000. 40 Recommendations A set of guidelines issued by the FATF to assist countries in the fight against money. laundering.

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Can I deposit $5000 cash in a bank? ›

If you're headed to the bank to deposit $50, $800, or even $1,000 in cash, you can go about your affairs as usual. But the deposit will be reported if you're depositing a large chunk of cash totaling over $10,000.

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How much cash can I deposit in one day? ›

Cash deposit limits can be different for each bank or financial institution, but banks must report any deposits over $10,000 to the IRS. So, while you may be able to deposit more than $10,000 into your bank account, know that the bank will investigate, track and report that payment as a result to ensure it's legal.

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How to justify cash deposits? ›

Here are some examples of how to explain a cash deposit:

Pay stubs or invoices.
Report of sale.
Copy of marriage license.
Signed and dated copy of note for any loan you provided and proof you lent the money.
Gift letter signed and dated by the donor and receiver.
Letter of explanation from a licensed attorney.

More items...

Oct 5, 2023

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How often can I deposit $10,000 cash without being flagged? ›

The IRS requires Form 8300 to be filed if more than $10,000 in cash is received from the same payer or agent in any of the following ways: In one lump sum. In two or more related payments within 24 hours. As part of a single transaction or two or more related transactions within 12 months.

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How much cash can you keep at home legally in the US? ›

The government has no regulations on the amount of money you can legally keep in your house or even the amount of money you can legally own overall. Just, the problem with keeping so much money in one place (likely in the form of cash) — it's very vulnerable to being lost.

Can a bank ask where you got money? ›

Banks may ask where the money in your account comes from or how you plan to use it. Bank tellers are instructed to document actions that are out of place with an unusual transaction report (UTR) or Suspicious Activity Report (SAR).

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Does IRS look at cash deposits? ›

The Short Answer: Yes. Share: The IRS probably already knows about many of your financial accounts, and the IRS can get information on how much is there. But, in reality, the IRS rarely digs deeper into your bank and financial accounts unless you're being audited or the IRS is collecting back taxes from you.

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Can I deposit 2000 cash in a bank? ›

Deposit into accounts can be made without restrictions. The ₹2000 banknotes can be deposited into bank accounts and cash requirements can be drawn thereafter, against these deposits.

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