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SBI Fixed Deposit Double Scheme
The SBI Fixed Deposit Double Scheme is primarily an investment scheme offered by the State Bank of India that caters to investors looking to double their money at maturity. Under this scheme, the tenure is pre-decided and can range from a couple of years to a maximum of 10 years. It is a reinvestment plan where the accrued interest is added to the principal to generate compounding benefits.
Returns as high
as 7.1%*
Includes life cover
Completely Tax free+
as 7.1%*
Includes life cover
Completely Tax free+
Maximum returns Offered by
Guaranteed
Highest
7.1%*
Guaranteed Plan
(by insurance companies)
(10 Years)
6.5%**
Fixed Deposits
(by SBI bank)
(5-10 Years)
7.1%***
Public Provident Fund
(other popular options)
(15 Years)
Get Guaranteed returns up to 7.1%*
Fully Tax-Free* (unlike FD), Life Cover Included
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FD Interest Rates
- SBI Fixed Deposit Double Scheme
How Does SBI Fixed Deposit Double Scheme Work?
The SBI FD Double Scheme offers higher fixed interest rates than that of regular FD rates. One of the best features of this scheme is that the interest is not paid, but rather gets reinvested in the account. Interest applied quarterly is reinvested for a compounding benefit. As a result, you receive the cumulative maturity value at the tenure’s end, comprising the invested principal plus the accumulated interest.
Information About
Guaranteed Return Plans
Returns Before Tax
7.1% (TAX-FREE)
Returns After Tax
7.1%
Guaranteed Returns
Yes
Life Cover
Yes
Tax on Profit
Tax Free*
Risk
No Risk
Fixed Deposits
Returns Before Tax
7% (TAXABLE)
Returns After Tax
4.8%
Guaranteed Returns
Yes
Life Cover
No
Tax on Profit
Taxable
Risk
Low Risk
Debt Mutual Fund
Returns Before Tax
8% (TAXABLE)
Returns After Tax
5.5%
Guaranteed Returns
No
Life Cover
No
Tax on Profit
Taxable
Risk
High Risk
*For annual premium upto ₹5 Lacs
Advantages of SBI Fixed Deposit Double Scheme
The SBI FD Double Scheme is one of the most preferred investment options in India. It helps your money grow in anticipation of receiving double the investment. The common advantages offered by the SBI Fixed Deposit Double Scheme in India are:
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Hassle-free Account Opening:
You can open an account in any SBI branch after opening a savings account with them. The same customer ID allotted to you acts as the master identification to avoid KYC compliance once again. A simplified account opening form with an instruction to debit your account suffices. In addition, you can request account opening online or offline, according to your convenience.
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Competitive Interest Rates:
The SBI FD Double Scheme offers higher interest rates than those of regular FDs, which helps you double your deposits at a predetermined time in the future.
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Flexibility:
You can choose the amount to invest and the tenor aligned with your specific financial objectives. Whether the deposit is big or small, there are no restrictions prescribed for the scheme.
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Liquidity:
Though the deposit is for a contracted period, you are allowed to withdraw the deposit prematurely, subject to complying with the underlying conditions. So let us see what they are:
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The penalty for premature withdrawal for deposits up to Rs. 5 Lac is 0.50% across all tenors.
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For deposits above Rs. 5 Lac, the penalty is 1%.
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The bank’s applicable interest for the deposit period is 0.50% or 1% below the card rate, and 0.50% or 1% below the contracted rate, whichever is lower.
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However, you do not earn any interest on deposit tenors less than 7 days.
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Nomination:
You can assign a nominee while opening the account or later. In addition, you can change the nominee subsequently, anytime before the maturity date.
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Overdraft Facility:
You can seek a loan on your deposit with applicable margins based on the remaining tenor.
Difference Between SBI Regular FD and SBI FD Double Scheme
An SBI regular FD and an SBI FD Double Scheme have certain differences in their core nature. Given below are the common differences between a regular FD and an FD Double scheme at SBI:
| Key Features | SBI Regular FD | SBI FD Double Scheme |
| Ideal For | Suitable for those needing regular income or shorter-term savings. | Ideal for long-term investors aiming for wealth multiplication. |
| Flexibility | Under this, you have the flexibility to choose the investment tenor as per your financial goals. | Under this, in order to double the principal amount, the FD tenor is predetermined. |
| Maturity Amount | Fixed Payout | Almost double the principal amount. |
| Compounding | Interest is typically compounded simple (e.g., annually, half-yearly) or paid out. | Interest is compounded more frequently (e.g., quarterly) leading to faster growth. |
| Interest Rate | Lower than the FD Double Scheme. | It is higher than regular FDs. |
| Interest Payment | It is paid either at fixed tenures or at maturity. | Interest generated is added to the principal amount and finally received at maturity. |
FD interest rates India have fallen consistently over the last 12 years.
What is the Eligibility Criteria for Fixed Deposit Double Scheme?
All resident individuals are allowed to park their funds in the deposit. In addition, the following are significant:
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Both senior citizens and the general public qualify to establish an account through this scheme.
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You can operate the account singly or jointly. Minor accounts are self-operated or through a guardian.
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The FD Double Scheme is open to applications from clubs, partnerships, and various organizations.
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HUF Karta, Firms, Companies, Local Bodies, and any other Government Department can invest in the SBI Fixed Deposit Double Scheme.
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Schools, colleges, and other educational bodies may also participate in this scheme.
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The SBI FD Double Scheme is accessible to joint-stock companies.
List of Banks Offering Fixed Deposit Double Scheme
Apart from the State Bank of India, some of the major banks that offer the Fixed Deposit Double Scheme are:
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HDFC Bank
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ICICI Bank
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Bank of Baroda
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Axis Bank
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Punjab National Bank
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Union Bank of India
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Canara Bank
All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
Conclusion
The SBI Fixed Deposit Double Scheme is a specialized investment that aims to nearly double your principal at maturity through quarterly compounding. Offering higher interest rates than regular FDs, it's ideal for long-term investors seeking significant wealth growth rather than regular income. While providing flexibility in investment amount and essential facilities, it also entails penalties for premature withdrawals. Consider if this scheme aligns with your long-term financial goals.
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Bank of Baroda FD Interest Rates
Bank of Ceylon FD Interest Rates
Bank of India FD Interest Rates
Bank of Maharashtra FD Interest Rates
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Allahabad Bank FD Calculator
Andhra Bank FD Calculator
AU Bank FD Calculator
Axis Bank FD Calculator
Bajaj Finance FD Calculator
Bandhan Bank FD Calculator
Bank of Baroda FD Calculator
Bank of India FD Calculator
Bank of Maharashtra FD Calculator
Canara Bank FD Calculator
Central Bank FD Calculator
Corporation Bank FD Calculator
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FAQ's
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What is the SBI FD Double Scheme?
It's a special investment plan from SBI that aims to nearly double your original investment by the time it matures. -
How does the interest work in the SBI FD Double scheme?
The interest you earn is not paid out regularly; instead, it's added back to your principal amount every three months (quarterly), helping your money grow faster. -
Does SBI apply TDS to the accrued interest of its Special Term Deposit?
As per the IT Act, 1961, the accrued interest in the scheme during a financial year is subject to TDS at applicable rates after considering exemptions. -
Can you request a TDS waiver for the accrued interest in the SBI Special Term Deposit?
According to your eligibility, TDS is not applied to the account if you submit a 15G or 15H form. However, the request is valid during the financial year it is submitted. -
Can I take my money out before the maturity date in SBI Fixed Deposit Double Scheme?
Yes, you can withdraw early, but there might be a small penalty charge, and you won't earn interest if you withdraw within 7 days.
*All savings are provided by the insurer as per the IRDAI approved
insurance plan. Standard T&C Apply
+ Trad plans with a premium above 5 lakhs would be taxed as per
applicable tax slabs post 31st march 2023
#Discount offered by insurance company
++Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
˜Top 5 plans based on annualized premium, for bookings made in the first 6 months of FY 24-25. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
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