Every investor in today’s financial market wish to double his/her money by available investment options in minimum time duration. These imaginative thoughts give origin to numerous wrong or fake schemes which have the ability to double your money over a period of time or sometimes, in a short span. The famous Ponzi scheme is more or less a perfect example of such false schemes. However, what if you are told that doubling your money is no longer a dream? And the entire system is legal and is offered by some of the leading nationalised banks of the country? Sounds exciting? So here is the gateway for you to double your money, and this method can be called as Fixed Deposit Double Scheme.
What is a Fixed Deposit Double Scheme?
A Fixed Deposit Double Scheme is a plan or scheme that doubles the customer’s investment over a period of time. The scheme is restricted to banks only and requires the customer to deposit certain amount for a fixed period of time. The interest thus earned on this principal amount doubles the principal and is made available to the customer at the end of the term.
What is the difference between a Normal Fixed Deposit and Fixed Double Deposit Scheme?
In normal fixed deposits the investors have the flexibility to decide the tenure of the deposit, which is generally for few years. The Interest accumulated on a normal fixed deposit is dependent on the term decided. Thus the longer term you opt for your fixed deposit, higher is your income from the interest on the deposit over the tenure. You receive the principal amount with the interest at the end of the tenure, upon maturity.
However, in case of fixed deposit double schemes, the bank fixes the tenure of the fixed deposit and is not left flexible to the investors. Also, the interest remains fixed over the period thus ensuring that the money invested is doubled at the end of the fixed period. The money is doubled on the interest earned. So, if you have invested an amount of Rs. 30,000, at the end of the term, the interest earned on the investment would be Rs. 30,000 thus making the total receivable amount at the end of the period, double the investment. The interest earned is however different for different categories of customers, with armed force personnel and senior citizens earning more interest compared to other category of customer. TDS (Tax Deducted at Source) is applicable on the interest one earns and dependent on the existing rules.
- The account opening process is extremely simple and hassle free.
- Though the term is decided by the bank, the amount is flexible with the customer and can range from few thousands to even lakhs.
- Loans can be availed on the Fixed Deposit Double Scheme
- Premature withdrawal of the amount is allowed by some banks.
Banks offering the scheme:
Tamil Mercantile Bank, Allahabad Bank, Bank of Baroda, Punjab National Bank and Oriental Bank of Commerce are the banks in India which currently offer the scheme.