Finance, Forex and Investments

Are Public Sector Bank in India Very safe,as I want to deposit more then 10 Lakh in one Bank?

Even as the Insured amount is 1 lakh only per depositor, they are own by the Central Goverment and I think maybe they will be quite safe. If I want to avail of the insurance it means I have to Deposit 1 lakh each in ten different Bank and that is so unreasonable.

Public Comments

1. Very safe as Govt.of India is the major holder.
2. Yes, but don't broadcast it like this
3. The public sector banks in India (Like State Bank of India and many more) are a safe to invest and deposit your money If I were you instead of depositing one lump sum in one Bank I will deposit the same amount in 2 or 3 banks depending on the interest rates and terms. I wouldn't put all eggs in one basket
4. yes it safe..you can try canara bank , sbi, karnataka bank they will give you more benefits also...
5. you may invest in post office savings instead, which is paying 8% pa as agianst 7.25% in banks..
6. You can go with any PSU bank fixed deposit. See the interest rates of different banks before depositing A TDS of 10 % will be applicable while distributing interest.
7. Yes,as you mention they are insured for only 1 lakh but the Indian Goverment is very stable and in case one Public Sector Bank fail RBI will jump to its rescue and bail it out or merge it with other PSB,so it is very safe for its depositor.
8. Yes.10% TDS is considered.