Does the ₹5 lakh DICGC figure cover only your deposits, or the interest earned on them too?

Principal and interest together, inside the same ₹5 lakh

Principal only — interest is covered on top

Interest only, since the principal is the bank's liability anyway

You leave a job and no salary is credited for a few months. What happens to the salary account?

Many banks convert it to an ordinary savings account, with a minimum balance requirement attached

It stays a salary account indefinitely — the label is permanent

It closes automatically with no charges

Lesson 1 of 3 · 8 min

Savings, current and salary accounts

They look identical in an app and behave nothing alike. One pays you interest, one charges you for it, and one changes type when you leave a job.

You were probably handed whichever account the bank had open on its screen, and nobody explained the difference. Inside the app there is barely any difference. On your statement there is a lot of it.

The four you are most likely to be offered

A current account never pays interest. If a bank steers a salaried individual toward one, ask why.
Account	Who it is for	Interest	The catch
Savings	Individuals, everyday money	Yes, usually 2.5–4%	Minimum balance penalties, and a cap on free cash transactions
Current	Businesses with high transaction volume	None at all	Higher minimum balance; you are paying for transaction capacity, not earning
Salary	Salaried employees, opened by the employer	Yes, like savings	Often converts to an ordinary savings account with penalties if salary stops for a few months
BSBDA / zero-balance	Anyone who wants no minimum balance	Yes	Limited free withdrawals and no cheque book by default

Two numbers to know about any account

DICGC deposit insurance: ₹5,00,000
Minimum balance penalty: ₹100–₹600 a month

Quick check

You are salaried and a bank suggests a current account. What is the most important thing to know?

Check yourself

1 / 3

Kabir asks

You hold ₹4 lakh at one branch and ₹3 lakh at another branch of the SAME bank. How much does DICGC cover?

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