Fixed Deposit Double Scheme

What is an FD Double Scheme?

An FD Double Scheme is a process where you invest a fixed amount of money for a set period of time and earn FD interest on it, which results in doubling your investment after a certain period. The FD interest rate depends on the time span for which the amount is invested. The most common time period mentioned for an FD investment to double your money is five years.

Here’s an example of fixed deposit double scheme with a tenure of 5 years:

Let’s say, you invest ₹1,00,000 in an account that compounds annually at a suitable interest rate, the power of compounding causes your investment, and the interest earned on it, to build up year after year; as a result, by the end of 5 years the original ₹ 1,00,000 grows to ₹ 2,00,000.

As you can see, the interest earned at the end of each year is reinvested, compounding to a higher maturity amount. By the end of the 5-year tenure, the investor's initial deposit of Rs. 1 lakh has grown to ≈ ₹200,000 with a total interest earned of ≈ ₹99,999.99

Fixed Deposit Double Scheme vs Normal Fixed Deposit Scheme

Here's a table showing the key differences between a Fixed Deposit Double Scheme and a Normal Fixed Deposit Scheme:

The main difference between the two schemes is that in Fixed Deposit Double Scheme, the maturity amount is double the investment amount. While in a regular fixed deposit scheme, the maturity amount remains fixed with consistent interest rates.

Fixed Deposit Double Scheme is better for investors who want to maximise their returns, especially if they are looking to invest for a longer tenure.  

Benefits of a Fixed Deposit Double Scheme

Fixed Deposit Double Scheme is one of the most popular investment options in India. It provides a safe and secure way to invest money and earn interest on it. 

Here are some of the benefits Money Double Scheme offers: 

1. Higher Interest Rates 

   The FD Double Scheme offers higher interest rates than normal FDs. Some banks also offer extra rates to senior citizens investing in the scheme. FD calculator online tool can be used to analyze the fixed deposit returns.

2. Fixed Returns

   Money Double Scheme provides fixed returns, which means you know how much you will earn at the end of the tenure. This is especially beneficial for risk-averse investors who do not want to invest in volatile investments such as stocks or mutual funds. 

3. No Effect of Fluctuations

   The FD Double Scheme is not affected by fluctuations in the market, which means you do not have to worry about market risks. The returns are fixed and you can be assured of getting your principal amount back at the end of the tenure. 

4. Flexibility

   The scheme offers flexibility in terms of investment tenure. You can choose the period best suited to your financial goals between 1 and 10 years. You can also choose the frequency of interest payout, such as monthly, quarterly, half-yearly, or annually, depending on your financial needs.

5. Tax Benefits

   FD Double Scheme provides tax benefits under Section 80C of the Income Tax Act, 1961. You can claim a tax deduction of up to Rs. 1.5 lakhs on the amount invested in this scheme. This makes it an attractive investment option for those looking to save on taxes.

List of Banks Offering Double Deposit Scheme in India

Double Deposit Scheme in India offers investors the opportunity to double their investment over a certain period, typically ranging from 5 to 10 years. 

Here is a list of banks in India that offer double deposit schemes:

• State Bank of India (SBI)

• ICICI Bank

• HDFC Bank

• Axis Bank

• Canara Bank

• Punjab National Bank (PNB)

• Union Bank of India

• Bank of Baroda

• Central Bank of India

• Indian Bank

List of Double Deposit Schemes in India

These schemes are popular among investors with a low-risk appetite who look to generate a guaranteed return on investment. 

Here is a list of Money Double Schemes available in India:

• SBI Fixed Deposit Double Scheme

• ICICI Bank Double Your Money Scheme

• Post Office Fixed Deposit Double Scheme

• Axis Bank Double Advantage Scheme

• Tamilnadu Mercantile Bank Double Deposit Scheme

• IDBI Bank Double Money Scheme

• Bank of Baroda Double Dhamaka Fixed Deposit Scheme

• Canara Bank Dhanvarsha Double Deposit Scheme

• Bank of India Double Benefit Term Deposit

• Kisan Vikas Patra Scheme

Eligibility Criteria

• Age: Minors (below 18 years) can also be a part of this scheme.

• Citizen Type: Both senior citizens and general citizens are eligible for this account.

• Institution Type: Educational institutions can also avail of this scheme.

• Account Type: The FD Double Scheme is available for both single and joint accounts.

• Company Type: Joint-stock companies are eligible to apply for this scheme.

• Partnership: Clubs, partnerships, and other similar entities can apply for the scheme.

Conclusion  

The Fixed Deposit Double Scheme is a lucrative investment option offering attractive returns to investors. It is a low-risk investment that provides a fixed interest rate over a specified tenure. With the FD Double Scheme, investors can rest assured that their investment will yield good returns while also providing stability and security. Apart from that, bank fixed deposits with highest returns can also be a possible option for investment.

FAQs