# Banking in India

> The boring part of your money is where most of it sits. Get deposit safety, FD rates and payment charges right before you chase returns anywhere else.

Savings accounts, fixed deposits, UPI and deposit insurance, explained for Indian savers

_Last updated: 2026-10-18_

Canonical: https://www.tldr.money/banking

## Is your money safe?

The Deposit Insurance and Credit Guarantee Corporation (DICGC) insures bank deposits up to INR 5 lakh per depositor per bank. That limit covers principal and interest together. Deposits in different banks are insured separately, while branches of the same bank are added together. Deposits with NBFCs, such as company FDs, are not covered.

If you hold more than INR 5 lakh, spreading it across banks keeps all of it insured.

## Fixed deposits

FD rates vary widely. After RBI's October 2026 repo hike, small finance banks offer senior citizens up to 8.50%, while the largest banks pay around 7.05-7.10% at their best tenures. Compare the full list in [best FD rates for senior citizens](/articles/banking/best-fd-rates-senior-citizens), and weigh FDs against government-backed options in [small savings interest rates for October-December 2026](/articles/tax-planning/small-savings-interest-rates-oct-dec-2026).

## UPI and payments

UPI is free for you. NPCI's new merchant discount rate is paid by larger merchants on payments above INR 2,000 and cannot be passed on to customers. See [UPI charges after Diwali](/articles/banking/upi-mdr-charges-explained). UPI is also the usual way to apply for an IPO: the bank blocks the amount rather than paying it out. See [how to apply for the Jio IPO](/articles/ipo/how-to-apply-jio-ipo) and our [IPO guide](/ipo).

## Account aggregators

Account aggregators let you share bank and investment data between institutions with your consent. RBI plans to make them interoperable and to show bank deposits in your depository statement by the end of 2026. See [account aggregators and bank deposits in your CAS](/articles/banking/account-aggregator-cas-bank-deposits).

## Where banking meets borrowing

Rate changes affect both sides of your balance sheet. Savers gain when rates rise; borrowers pay more. Our [loans guide](/loans) covers the borrowing side.