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.
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.
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||6.50%|
|Allahabad Bank||7 days to 10 years||4.00% to 6.60%|
|Bank of India||12 months to 120 months||6.60% to 6.65%|
Fixed Deposit Double Schemes come with a host of features and benefits, some of which are mentioned below.
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.
Q. 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.
Q. 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.
Q. Are accounts auto renewed?
A. Yes, most banks offer auto renewal of accounts, unless specific instructions are given for the contrary.
Q. 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.