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.
Banks providing Double Scheme Fixed Deposits
There are a few banks which offer Fixed Deposit Double Schemes, some of which are mentioned below.
- Tamil Mercantile Bank – Tamil Mercantile Bank offers a “Double Deposit” scheme to customers, aiming to double a particular investment in a specified time period. This scheme is open for individuals and companies alike, with the time period to double an investment standing at 98 months and 10 days for senior citizens and 104 months and 11 days for others. The minimum deposit for this scheme stands at Rs 1,000.
- Allahabad Bank – Allahabad Bank offers a scheme titled “Double Deposit Plan” which is a combination of a Fixed and a recurring deposit scheme. Interest on this deposit is compounded quarterly, with a minimum investment of Rs 1,000.
- Bank of Baroda - Bank of Baroda offers a scheme titled “Baroda Double Dhamaka Fixed Deposit” which is primarily targeted to customers who wish to see their money grow. This account can be opened by individuals and companies alike, with a minimum deposit of Rs 5,000 and a maximum deposit of Rs 1 crore. The period to double an amount is 105 months and 3 days for senior citizens and 112 months for others.
- Oriental Bank of Commerce – The “Oriental Double Deposit Scheme” offered by Oriental Bank of Commerce aims to double the deposit of a customer over a specific time period. The minimum deposit amount for this scheme is Rs 1,000, with the time taken to double the money standing at 105 months for senior citizens, 114 months for the general public, 99 months for staff members and 96 months for former staff members and senior citizens.
- Punjab National Bank – Punjab National Bank offers the “PNB Dugana Fixed Deposit Scheme”, aimed at doubling the deposit of a customer. This scheme can be availed by individuals and companies/firms alike, with a minimum deposit of Rs 5,000. An amount doubles in 99 months, post which it is returned to the depositor.
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.
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.