Fixed Deposit Double Scheme

A fixed deposit double scheme is an investment scheme offered by banks and financial institutions. It allows investors to deposit a particular sum for a fixed period. Unlike regular Fixed Deposits, where one can choose the tenure, FD double deposit schemes generally come with a pre-defined tenure that can range from a few years to 10 years.

How Does FD Double Scheme Work?

Fixed Deposit Double Scheme offers a fixed interest rate which is higher than the regular FD rates. Here, the interest on the deposited amount is compounded quarterly, which means the interest earned is added to the principal amount, which earns interest in the subsequent periods. This compounding effect helps your money grow faster and work towards doubling your investment.

Benefits of Fixed Deposit Double Scheme

FD Double Scheme is a popular investment option in India. It provides a safe and secure way to invest money and earn interest on it. 

Given below are some of the benefits of fixed deposit double scheme:

• Attractive Interest Rates: The FD Double scheme provides higher interest rates compared to normal FD, and it assists investors in doubling their deposits over a certain period of time.
• Easy and Simple Account Opening: Individuals can open an account easily, either physically by visiting the bank or online through the portal.

• Flexibility: Investors have the flexibility of choosing the deposit amount according to their financial flexibility. Most banks will accept deposits ranging from a few thousand to lakhs.

• Nomination Facility: One can also nominate individuals on their behalf. In case of unforeseen death of the account holder, the nominees will get the deposit amount.

• Tax Benefits: The bank will deduct TDS on FD Double Scheme income if the interest income in a financial year exceeds Rs. 40,000 (for regular citizens) and Rs. 50,000 (for senior citizens). The TDS rate is 10% when the investor discloses the PAN Card details. If not, the bank will levy TDS at 20%.

• Loan Against FDs: Banks also allow investors to obtain loans against their FD Double schemes. This provides financial flexibility during emergencies without the need to prematurely break the deposit.

Difference between Regular FD and FD Double Scheme

In the Fixed Deposit Double Scheme, the maturity amount is double the investment amount. Whereas, in the case of a regular fixed deposit, the maturity amount remains fixed with consistent interest rates.

The table below shows the major differences between regular Fixed Deposits and Fixed Deposit double scheme:

List of Banks Offering Fixed Deposit Double Scheme

• State Bank of India (SBI)
• ICICI Bank
• HDFC Bank
• Axis Bank
• Punjab National Bank
• Bank of Baroda
• Canara Bank
• Union Bank of India
• Central Bank of India
• Tamil Nadu Mercantile Bank
• IDBI Bank
• Bank of India

Eligibility Criteria for Fixed Deposit Double Scheme

The Fixed Deposit double scheme has the following eligibility criteria:

• It is open to both single and joint account holders.
• Minors are eligible to open an account under this scheme.
• Joint-stock companies can opt for the FD double scheme.
• Educational institutions, such as schools and colleges, are also eligible to apply for the scheme.
• Clubs, partnerships, and organisations can apply for the FD double scheme.
• Senior citizens and general citizens are also eligible to open an account under this scheme.

List of FD Double Deposit Schemes in India

Fixed Deposit double scheme is a popular scheme among investors due to its low risk and guaranteed return. Given below is the list of FD Double Schemes available in India:

• SBI Fixed Deposit Double Scheme
• ICICI Bank Double Your Money Scheme
• Axis Bank Double Advantage Scheme
• Bank of Baroda Double Dhamaka Fixed Deposit Scheme
• Canara Bank Dhanvarsha Double Deposit Scheme
• Bank of India Double Benefit Term Deposit
• Tamilnadu Mercantile Bank Double Deposit Scheme
• IDBI Bank Double Money Scheme
• Post Office Fixed Deposit Double Scheme
• Kisan Vikas Patra Scheme