BAJAJ FINSERV DIRECT LIMITED
Investment Insight

How Many Fixed Deposits Can You Have? Smart Ways to Maximise Your Savings

authour img
Deepshikha Nainani

Table of Contents

Overview

Fixed deposits (FDs) offer a safe and predictable way to grow your money without the ups and downs of the market. While one FD may serve a single goal, multiple FDs can give you more control, better liquidity, and higher flexibility with your savings. You may wonder how many FDs can be opened or how many FD accounts can I have—there’s no official limit. By opening fixed deposits for different purposes and timelines, you can build a smart savings strategy that works for you. Knowing how many FDs can be opened by a person helps you plan more effectively.

How Many Fixed Deposits Can You Have

There is no restriction on how many FDs can be opened by a person. You can hold multiple fixed deposits either in the same bank or across several banks. The Reserve Bank of India (RBI) does not impose any limit on the number of FD accounts you can maintain. If you're wondering how many FD accounts can I have, the simple answer is—as many as you find useful for your financial goals. Each FD can have its own deposit amount, tenure, and interest payout option, giving you full control over how and when you access your savings.

Why You Should Open Multiple FDs

Opening multiple fixed deposits allows you to manage your money based on different financial needs. Instead of putting a large amount into a single FD, you can split it across smaller deposits with different tenures. This gives you the flexibility to access funds when required, without affecting your long-term investments. Each FD can be aligned with a specific goal, such as emergency funds, travel plans, or future education expenses.

By using this approach, you reduce the risk of breaking a large FD early, which often leads to lower interest earnings. If you're wondering how many FDs can I open, the answer depends entirely on how many goals you want to plan for. Multiple FDs give you better control over your money and allow you to maximise returns while keeping your savings accessible.

Pros and Cons of Multiple FDs

Having multiple fixed deposits can offer better flexibility, liquidity, and control over your money. However, it also comes with a few challenges. Here’s a clear comparison to help you make an informed decision:

Pros of Having Multiple Fixed Deposits

Here are the key benefits of having multiple fixed deposits, helping you manage your savings more efficiently and meet different financial goals with ease:

Better Liquidity

You can access funds at different times without breaking a large FD early.

Goal-based Planning

Each FD can be aligned to a specific financial goal like travel, education, or emergencies.

Higher Average Returns Through Laddering

Staggering FD tenures allows you to reinvest at better rates as they mature.

Reduced Interest Rate Risk

If rates rise, matured FDs can be renewed at higher rates while older ones continue earning stable returns.

Diversification Across Banks

Spreading FDs across banks helps manage risk and lets you benefit from better interest rates.

Unlimited FD Accounts

There is no restriction on how many FDs can be opened by a person, giving you full flexibility.

Customised Tenures and Payout Options

You can choose different durations and interest payout modes for each FD based on your needs.

Cons of Having Multiple Fixed Deposits

Here are the common drawbacks of having multiple fixed deposits that you should consider before deciding to split your investments:

Difficult to Track

Managing multiple FDs can get confusing without proper records and reminders.

Loss of Bulk Rate Advantage

Splitting a large amount into smaller FDs may prevent you from earning higher interest offered on large deposits.

Minimum Deposit Limits

Some banks require a minimum investment amount, which can restrict how you split your funds.

More Administrative Effort

Opening and maintaining FDs in different banks may involve more paperwork and attention.

What Is FD Laddering

FD laddering is a strategy where you split your investment into multiple fixed deposits with different maturity dates. This approach prevents your entire amount from being locked in for a long period and gives you periodic access to funds. For example, if you invest ₹1,50,000, you can create three FDs of ₹50,000 each with tenures of 1, 2, and 3 years. As each FD matures, you can choose to use the amount or reinvest it at current interest rates. This method balances liquidity with returns and helps you manage changing interest rate trends more effectively.

Should You Use Different Banks for FDs

Here are the key reasons why using different banks for your fixed deposits can help you reduce risk and make the most of your savings strategy:

  • You can benefit from higher interest rates by comparing FD offers across different banks

  • Your deposits stay insured up to ₹5 lakh per bank under the DICGC scheme

  • Spreading FDs across banks lowers the risk of relying on a single financial institution

  • Using multiple banks allows you to diversify your savings and reduce exposure to one bank’s performance

  • You can stagger maturity dates across banks to align with different goals and needs

  • Opening FDs in various banks may offer access to different interest payout options and tenure flexibility

  • Always choose banks that are well-rated and regulated to ensure the safety of your principal amount

Mistakes to Avoid with FDs

Here are some common fixed deposit mistakes that can reduce your returns or complicate your savings plan, and how you can avoid them from the start:

Choosing the Wrong Tenure

Locking in funds for too long without checking interest rate trends may reduce your flexibility and returns.

Ignoring FD Renewal or Reinvestment

Forgetting to renew or reinvest matured FDs can lead to idle funds earning little to no interest.

Not Comparing Bank Interest Rates

Failing to compare FD rates across banks can result in lower earnings over the same period.

Overlooking Tax on Interest

Interest earned on FDs is taxable, and not factoring this in can impact your final returns.

Opening Too Many FDs Without a Plan

While there’s no limit on how many FDs can be opened, too many without a clear goal can become hard to manage.

Missing Out on Bulk Deposit Benefits

Splitting large amounts into many small FDs may prevent you from qualifying for higher interest rates on bulk deposits.

Not Checking Bank Credibility

Opening FDs in lesser-known or unregulated banks can put your principal at risk despite high returns promised.

Ignoring Penalties for Early Withdrawal

Withdrawing FDs before maturity can lead to interest loss and penalty charges, reducing overall gains.

How to Manage Multiple FDs

Here are simple and effective ways to manage multiple fixed deposits without losing track or missing out on better returns:

  • Use a spreadsheet or FD tracking app to record deposit amounts, tenures, interest rates, and maturity dates

  • Set calendar reminders to renew, withdraw, or reinvest matured FDs without missing deadlines

  • Label each FD with a clear purpose—such as travel, education, or emergencies—for better financial planning

  • Choose a mix of short-, medium-, and long-term tenures to ensure steady liquidity when needed

  • Group FDs by bank to simplify tracking and avoid confusion with account statements

  • Review interest rates regularly and consider breaking or reinvesting if better rates become available

  • Keep maturity amounts in a separate account to avoid spending them unintentionally

  • If you're thinking how many FD accounts can I have, focus equally on whether you can manage them efficiently over time

What to Check Before Opening an FD

Here are the key things you should check before opening a fixed deposit to ensure your money works efficiently for your goals:

  • Compare interest rates offered by different banks for the amount and tenure you plan to invest

  • Choose a tenure that matches your financial goal without locking in funds for too long

  • Check if the bank charges a penalty for premature withdrawal and how it affects your returns

  • Understand whether interest will be paid monthly, quarterly, or at maturity, and choose based on your income needs

  • Confirm that the bank is covered under the ₹5 lakh DICGC deposit insurance scheme for added safety

  • Check the minimum deposit amount required, as it varies from bank to bank

  • Ensure the FD terms offer auto-renewal or easy reinvestment options if you're not tracking it manually

  • Review any special interest rates offered to senior citizens, which may give higher returns if applicable

How to Open an FD Online

Here are the simple steps to open a fixed deposit online without visiting the bank or filling out physical forms:

  1. Log in to your bank’s mobile app or internet banking portal

  2. Navigate to the fixed deposit or term deposit section from the main menu

  3. Enter the deposit amount and choose a suitable tenure based on your financial goal

  4. Select the interest payout option—monthly, quarterly, or at maturity

  5. Choose the source account from which the amount will be debited

  6. Review the FD details including maturity date, interest rate, and penalties for early withdrawal

  7. Accept the terms and conditions and submit the request to confirm your FD

  8. Receive a confirmation message or email, and track your FD easily through your bank’s online platform

Conclusion

There’s no restriction on how many FDs can be opened by a person, but the real value lies in how you structure and manage them. By combining smart strategies like FD laddering, diversifying across banks, and aligning each deposit with a clear goal, you turn fixed deposits into a flexible savings tool—not just a passive investment. With careful planning and consistent tracking, multiple FDs can offer liquidity, security, and steady returns without added risk. If you're looking for a safe way to grow your money while staying in control, fixed deposits deserve a serious place in your financial plan.

Author Image
Hi! I’m Deepshikha Nainani
Blogger

Deepshikha is a marketing and communications expert with over a decade of experience across various industries. With expertise in performance content, digital campaigns and brand management, she excels in creating data-driven, creative solutions that drive growth and engagement. Holding certifications in digital marketing and content strategy, she is passionate about combining creativity with analytics to create compelling marketing narratives that resonate. During her downtime, Deepshikha enjoys watching films and documentaries, listening to music, cooking and traveling.

Most Viewed


6 Min Read | Posted on 24 Jun

5 Min Read | Posted on 24 Jun


Academy by Bajaj Markets

alt 11886

All Things Tax

Navigate the tax maze with ease! Uncover Income Tax 101, demystify jargon with Terms for Beginners, and choose between Old or New Regimes.

Seasons 6
Episodes 25
Durations 1.3 Hrs
alt 7286

All Things Credit

Unlock the world of credit! From picking the perfect card to savvy loan management, navigate wisely.

Seasons 12
Episodes 56
Durations 3.0 Hrs
alt 1879

Money Management and Financial Planning

Money Management and Financial Planning covers personal finance basics, setting goals, budgeting...

Seasons 5
Episodes 19
Durations 1.1 Hrs
alt 2463

The Universe of Investments

Explore the investment cosmos! From beginner's guides to sharp-witted strategies, explore India's treasure trove of options.

Seasons 5
Episodes 23
Durations 1.5 Hrs
alt 216

Insurance Handbook

Discover essential insights on various types of insurance in India.

Seasons 2
Episodes 6
Durations 0.5 Hrs
alt 1358

Tech in Finance

Welcome to Tech in Finance, where we explore the exciting intersection of technology and finance...

Seasons 1
Episodes 5
Durations 0.3 Hrs
Home
Home
ONDC_BD_StealDeals
Steal Deals
Credit Score
Credit Score
Accounts
Accounts
Explore
Explore

Our Products