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Fixed Deposit Double Scheme

Every individual would like to see his or her wealth grow, and this has prompted many institutions to introduce financial instruments that will help them accomplish it. While it may not be possible to double one’s money overnight, there are ways by which money can actually double, with minimal risk. Fixed deposit double scheme - a type of FD - can help depositors to double the amount invested in a safe and secure manner.

Fixed deposit double schemes are usually offered by banking institutions, and require entities to deposit certain sums for a fixed duration. The interest that is earned on such deposits will eventually double the money. This is then handed back to the customer at the end of the term.

Difference Between a Normal Fixed Deposit and Fixed Double Deposit Scheme?

Under normal fixed deposits, the account-holder is given the flexibility to choose the tenure of the deposit. The interest on the deposit comes down to the term selected by user. The longer the period of deposit, higher will be the interest rate. The account-holder will receive the principal amount with interest at the time of maturity.

In case of a fixed deposit double scheme, an individual would need to deposit a fixed amount of money for a pre-determined period. The interest remains constant over the period, ensuring that the funds invested doubles by the end of the period. The interest earned on this deposit gets re-invested in the scheme. The rate of return on Fixed Deposit double schemes are greater than regular FD schemes.

Top Fixed Deposit Double Scheme in India

Some of the top fixed deposit double schemes in India are as follows:

Double Deposit Plan - Allahabad Bank

DDP is an amalgam of fixed deposit scheme and recurring deposit scheme. The interest is compounded at quarterly intervals. However, it is paid with the principal only at the end of the stipulated period.

The minimum deposit amount required to open this account is Rs.1,000, and higher amounts in multiples of Rs.1,000 are also accepted.

The maximum period for which DDP deposits are accepted is restricted to 120 months.

The account can be opened by the following entities:

  • Individual - Single Accounts
  • Two or more individuals - Joint Accounts
  • Limited Liability Companies
  • Association, Clubs, Societies, Trusts, etc.
  • Minors, Blind Persons, Illiterate Persons
  • Sole Proprietary Concerns
  • Partnership Firms
  • Joint Hindu Families
  • Municipalities, Panchayats, Govt. & Quasi Government Bodies
  • Religious, Educational, Charitable Institutions, etc.

Source: Official website of Allahabad Bank

Double Benefit Term Deposit - Bank of India

This account provides a higher yield on the principal at the end of the stipulated period as the interest is compounded on a quarterly basis. However, the principal and accrued interest is payable at the end of the period for which the deposit is placed with the bank. This scheme is best-suited for short-term and medium-term investments, ranging from 12 to 120 months.

The accounts can be opened by the following entities:

  • Individual — Single Accounts
  • Two or more individuals — Joint Accounts
  • Sole Proprietory Concerns
  • Partnership Firms
  • Illiterate Persons
  • Blind Persons
  • Minors
  • Government and Quasi-Government Bodies
  • Panchayats
  • Limited Companies
  • Associations, Clubs, Societies, etc.,
  • Trusts
  • Joint Hindu Families
  • Municipalities
  • Religious Institutions
  • Educational Institutions (including Universities)
  • Charitable Institutions Source: Official website of Bank of India

FAQs on Fixed Deposit Double Scheme

What is double fixed deposit scheme?

A fixed deposit double scheme is a kind of FD that is intended to help depositors double their investment in a safe and secure manner. They are offered by banking institutions, and require entities to deposit certain sums for a particular duration. The interest earned on this will eventually double the money.

Can a loan be taken against fixed deposit double scheme?

Yes, the loan facility is generally available against the pledging of double deposit fixed scheme.

Will TDS be deducted on double fixed deposit scheme?

Yes, TDS on interest shall be deducted as per guidelines issued by the government from time to time.