• Fixed Deposit Double Scheme

    Doubling our income is a dream which everyone has, often thinking of multiple ways which can double our hard earned money. While it might not be possible to double our money overnight, there are methods through which our money can actually double, without any risk on our part. Contrary to popular belief one doesn’t have to invest in shady schemes which promise to double your money, for fixed deposits can do the same, in a safe and secure manner.

    What is a Fixed Deposit Double Scheme?

    A Fixed Deposit Double Scheme is a plan which aims to double the investment of a customer over a period of time. These schemes are generally offered by banks and require customers to deposit certain sums for a fixed period of time. The interest earned on this sum eventually doubles the money, which is then given back to the customer at the end of a term.

    Top double income FD schemes in 2019

    Given below is the list of some of the best and highest-paying double income FD schemes in India:

    Bank/tenure Tenure Rate of interest
    Central Bank of India 7 days to 120 days 6.55%
    Allahabad Bank 7 days to 10 years 5.00% to 6.75%
    Bank of India 6 months – 10 years 6.25% to 6.70%
    1. Cent Double Deposit Scheme
      • Minimum investment amount is Rs.5,000 in semi-urban and rural centers and Rs.10,000 in metro and urban areas.
      • Maximum investment amount is less than Rs.1 crore
      • The rate offered is 6.55% p.a.
    2. Double Deposit Plan - Allahabad Bank
      • The Double Deposit Plan (DDP) offered by Allahabad Bank is another good investment choice.
      • The interest rate ranges from 5.00% p.a. to 6.75% p.a.
    3. Double Benefit Term Deposit - Bank of India
      • This fixed deposit will give a comparatively higher rate of return because the interest is compounded on a quarterly basis
      • The rate of interest ranges from 6.25% to 6.70%.

    Read also : Post Office Monthly Income Schemes

    Features and Benefits of FD Double Scheme

    Fixed Deposit Double Schemes come with a host of features and benefits, some of which are mentioned below.

    • Hassle free – Individuals/companies wishing to open this FD can open it without hassles, with banks following simple account opening procedures.
    • Flexible – Individuals can choose to deposit amounts according to their financial standing, with most banks accepting deposits ranging from a few thousand to lakhs.
    • Loans – Most banks offer loans on these fixed deposits, ensuring funds do not become a liability.
    • Nomination – Accountholders can nominate others on their behalf.
    • Interest rate – These deposits earn attractive interest rates, enabling them to double over a certain period of time.
    • Premature Withdrawals – certain banks allow premature withdrawal of funds from this deposit.

    How Fixed Deposit Double Scheme differs from Normal Fixed Deposit

    Both the normal fixed deposit and double scheme fixed deposits are essentially from the same family. Individuals having normal fixed deposits can choose the tenure for such deposits, which generally range from a few days to a few years. Interest earned on these deposits depends on the tenure, with longer tenures earning higher interests. The entire amount with the accumulated interest is returned to the depositor on maturity.

    In case of Fixed deposit double schemes, there is only a fixed tenure and one cannot modify this tenure. The interest rate remains fixed throughout this period, ultimately ensuring that an investment is doubled on its completion.

    FAQs

    How does money double in these FDs?

    A. The money doubles on account of the interest earned, with the interest component accounting for half the money.

    Is the interest same for everyone?

    A. No, the interest is different for different classes of customers, with senior citizens and members of the armed forces earning higher interest compared to others.

    Are accounts auto renewed?

    A. Yes, most banks offer auto renewal of accounts, unless specific instructions are given for the contrary.

    Will TDS be deducted on deposits?

    A. Yes, TDS might be deducted, subject to the rules in force and the interest component an individual earns.

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