What is the maximum amount of money that a bank account can hold?
Typically, a bank will not turn away deposits so essentially the sky is the limit in terms of holding money. Dan Ogden is right: there is a $250,000 per depositor, per insured bank, per account type i.e. checking, savings, money market accounts. Here is a link to the FDIC website on this.Many banks now have ways of circumventing the insurance cap. For instance, the CDARS service allows you to work with one custodian bank that will spread a large deposit out to multiple other banks thereby allowing you to retain your FDIC insurance on all of your deposit and not just $250,000 worth. Here is the link to CDARS (Certificate of Deposit Account Registry Service). It is not a difficult service to get.
If someone put 1 million dollars in a bank account, what would they earn in interest in a year?
Interesting question, and as soon as I saw it, I did the math. Here’s the thing, though. You have to define “savings.” I’m going to assume the searcher meant “savings account.” But even then, are we talking regular brick-and-mortar bank savings account, or a high-yield savings account?Let’s assume you put the money in a savings account, and took out the interest every year to live on.$1,000,000 in a brick-and-mortar savings account, earning 0.02% a year (pretty standard), would earn only $2,000 – could you live on that?$1,000,000 in a savings account earning 5% a year would yield $50,000. How about $50,000 – could you live on that?Most banks offer an account that will pay you a higher interest rate if you keep a significant amount of money in the account – $1,000,000 certainly counts as a “significant amount.” For example, Bank of America offers a Money Market Savings Account that would pay 1.55% on $1,000,000 – thus yielding $15,500 on your cool million.What about insurance? Well, the Bank of America account says it’s FDIC insured “to the maximum amount allowed by law.” I’m not really sure how much that is, but I do know that most online high-yield savings accounts are insured up to $250,000. Maybe you should just spread your million out between savings accounts at four different banks!Still, the Bank of America money market account doesn’t give you as good of a rate as an online savings account: ING’s Orange Savings offers 2.75% APY on any balance – whether you’ve got $1 or $1,000,000 in there. On $1,000,000 that would be $27,500 a year – perhaps that’s a bit closer to money you can live on?Ideally, though, if you have a million dollars, you might want to look into investing it in something a little more aggressive than a savings account, especially if you’re young and you don’t have to live off the money.
Can I deposit 5 lakhs in my 2 bank account, per a/c 2.5 lac? Will I need to pay tax according to new govt policies?
You got it all wrong, may be because of the media.Government's policy is not like if you deposit morethan 2.5 lakh in bank account, you have to pay tax and penalty.It says if you deposit morethan 2.5 lakh (upto 2.5 lakh income tax is exempted) they monitor your past income tax records and compare it to your returns and if IT department wants to know more about that deposited money,They have to give you a notice regarding its source of income,you have to explain it to them.If that deposited money is black money(income on which tax was not paid) then that money is treated as income which evaded tax i.e tax evasion.Then you have to pay 30% plus 3% cess and 200% penalty as per 270A of Income tax actAnswering your question if you deposit 2.5 lakh two times in two bank accounts doesn't make any difference as ultimately it is under your name and PAN number.They can track it easily. If your money is white its okay to deposit how much ever you want if not consult your auditor.Hope it clarifies your question.
If I deposit a $40,000 check to my bank account will I be red flagged from IRS?
The agency that deals with this is FinCEN. If the bank thinks that what you are doing is suspicious, then they will report it to FinCEN, and if FinCEN thinks that you are evading taxes, then they will bring in the IRS.The IRS doesn’t red flag accounts. Usually what happens is that if the IRS has suspicion that you are evading taxes, they will contact the bank and the bank will give them all your bank records. In some sense, everyone’s accounts are red flagged by the IRS.A USD 40k check from inside the US shouldn’t cause any issues because it’s likely that the money is recorded by some one else that they can check if there is an issue. For example if you got the money from the sale of a house, the real estate agent will issue that information to the IRS so there is no need for the IRS to track the money coming in.The one situation where a USD 40k would raise flags is if it came from foreign sources. If you suddenly started getting lots of checks from BVI corporations, then the bank would issue a report to FinCEN, FinCEN would contact the IRS, the IRS would check if you’ve reported any association with overseas corporations. If you didn’t, the IRS would assign an case worker to investigate further. If they can’t come up with anything, you’ll never know anything happened.
If I deposit more than 10 lacs in savings account, then how much is taxable?
Savings account’s interest is tax free up to Rs. 10,000 in a year. Any interest more than this will be taxable as per your slab. So, if you deposit 10 lakhs in your saving account, you will earn 35,000 as interest with 3.5% rate of interest. And, you will have to pay tax on Rs. 25,000 if your total annual income exceeds 2.5 lakh.
How much cash can I deposit into my NRO account?
If you are a Non-Resident Indian (NRI) and have currency of Rs 500 and Rs 1,000 you can deposit them in your NRO account. There is no limit on how much you can deposit. The same rules will apply to these accounts as the regular savings bank accounts. So, if the deposit is more than Rs 2.5 lakh, you may face enquiry about the source of the money and it should match your income. The interest rates on NRO deposits are also similar to domestic accounts, both savings and term deposits.But this is possible only if you are India currently. Those who are abroad would not be able to exchange or deposit the currency because foreign branches of Indian banks are neither accepting deposits in these currencies nor exchanging them.According to a list of Frequently Asked Questions (FAQ) on the Reserve Bank of India’s website, beyond December 30, 2016 the notes can be exchanged at specified RBI offices. So, if you are unable to come to India before the deadline, you can still exchange the notes, but not at any bank branch.If you are not in India currently, but have the withdrawn currency notes in India, you can authorise someone in writing to deposit the notes into your bank account. The authorised person has to come to the bank branch with the specified banknotes, the authority letter given by you and a valid identity proof, which includes Aadhaar card, driving license, voters ID card, passport, PAN card, etc.Another option is to send the notes to a family or friend in India and ask them to deposit it on your behalf.
How can I transfer more than 25k from my Paytm wallet?
You cannot transfer more than 25k directly as it’s the maximum limit.Few ways I can suggest would be, either transferring the amount to an another wallet and linking that wallet to some other bank account of yours.Or this method which I think works:In thisSuppose you add any amount through the card linked to that bank account in which you want the final amount to be transferred.Now you have that balance in your account and using ‘send money to bank’ transfer that amount to your account and maybe cross the limit.Now after this, if you want to transfer more, remember the amount you’d added in first point, now if you check in your paytm passbook, this particular amount you’ve added will have an option below it stating “Return to Bank”.Select that option, and now the extra amount loaded in your wallet will be transferred again to your bank account, but as a refund.Now in this method you can transfer more, but this amount is sent back to bank as a “refund”, hence this amount will take more time to credit in your bank a/c (time depends on your particular bank). In my case, I’ve a HDFC bank a/c, the refund was acknowledged immediately by sms, but it took around 4 days to credit finally in my account. Also you can transfer only that same fixed amount you’d added, like suppose you’d added 1k in a transaction, then using this, you can transfer only 1k at that time, nothing smaller or larger than that amount will be accepted or transferred respectively.Also you can use this as you like, suppose you’ve finished your limit, then you receive a larger amount from a friend, use this “return to bank” option and now transfer that amount too.I’ve tried this method and I’ve found that it works, I’ve tried it for a small amount and didn’t add too much above the 25k limit as to avoid losing the money or having to keep that amount for another month if the amount is too much more(because if it doesn’t work for some reason, you can’t ask paytm to send that now, they might reject it saying limit crossed, hence you’re having more amount in your wallet and can’t transfer that month), but you can try this with small amount initially and once you find it to your satisfaction, start transferring more. Do update here if someone finds this working for larger amounts or it doesn’t work, I didn’t have the need for transferring more and hence didn’t try. I’ll too give an update if I transfer more amount like this and find it to be working perfectly.
Suppose I deposited more than 10 lacs in a savings account but failed to clarify the source. What will be the consequences?
Generally any deposit with an amount of more than 50000 at single generally any deposit with an amount of more than 50000 at single instance in one day needs to have a pan linking with the account. I deposit of more than 10 lacs of cash to any account is automatically fetched as a suspicious transaction which needs clearance from the concerned bank officer and if at all he or she reports it as a suspicious is well then you might get a letter from the income tax authorities regarding the clarification of such deposits. If at all you will be able to provide a genuine clarified answer of the same then there is no hampering or issue with it but if at all you are not then you might be on the list of the IT Department which can be disastrous to you in future as well so be careful before doing anything so