5 min read
Suraj was recently blessed with a daughter, and he wanted to invest in a safe and guaranteed scheme to save some money for her school admission in a couple of years. With the rising cost in the education sector, he doesn’t want to take any chances and wants to have enough corpus. To help him with his objective, his friend recommended the FD money double scheme. After some research, he found the scheme apt for his situation and enquired about it with his bank.
Many people like Suraj are risk-averse and want to invest in safe and guaranteed schemes to double their money. The FD money double scheme is the right choice for them all. Let us understand the Fixed Deposit Double Scheme in detail in this post.
Fixed deposit (FD) money double scheme is one of the many investment options available in India. Money double schemes in banks and other financial institutions allow investors to double their money over a fixed period.
As the term suggests, the FD double scheme helps double your money by reinvesting your accumulated interest of the FD amount regularly. It enhances the principal amount and offers a higher investment return. Like in the regular FD scheme, the FD double scheme also allows the investor to select a tenure ranging from a few months to years. The scheme offers a higher interest rate as compared to regular FD interest rates.
The below table depicts the investment and interest earned in a Money Double Scheme over 5 years term:
|Principal Amount – Starting (INR)
|Interest Earned (INR)
|Total Interest Earned (INR)
Principal Amount – Ending (INR)
1, 16, 640
1, 25, 971.20
1, 36, 048.96
The table below shows the differences between a Fixed Deposit Double Scheme and a Regular Fixed Deposit Scheme:
|Points of Difference
|Fixed Deposit Double Scheme
|Regular Fixed Deposit Scheme
|Rate of Interest
|High rate of interest as compared to Regular FD Scheme
|Low rate of interest as compared to Fixed Deposit double Scheme
|Payment of Interest
|The interest is paid at the time of FD maturity, together with the principal amount
|Interest is paid at maturity or periodically
|Double the amount invested
|Offers high returns
|Offers low returns but with more liquidity and flexibility
The FD double scheme is a popular option for investment in India as it is a safe and risk-free way to secure your savings and earn interest. Here are some benefits of the FD money double scheme:
Compared to regular FD, the FD money double scheme allows a higher interest rate. You can use an FD calculator to analyse the returns under the FD money double scheme online.
Like the regular FD, the money double scheme offers fixed returns. Hence, you will know how much returns to expect at maturity. This plan suits risk-averse investors who do not want to invest in risky investments.
The market fluctuations do not affect the FD double scheme, so the investor doesn’t have to worry about any market-related risks. You invest your sum for a fixed tenure and receive assured returns along with the principal amount after maturity.
The scheme has a flexible tenure of 1 to 10 years. You are free to choose the term and frequency of interest payout per your choice and financial needs.
Under the money double scheme, investors can claim tax benefits u/s 80C of Income Tax of up to INR 1.5 lakhs. Thus, it is an attractive investment option for people who want to save tax.
Investors investing under the double money in the FD scheme have the option to double the investment within a period of 5 to 10 years. Here is a list of banks in India that offer double deposit schemes:
Investors with a low-risk appetite invest under double amount FD schemes to accumulate a guaranteed return on investment.
Here is a list of Money Double Schemes available in India:
|No age limit. Minors are also eligible to be a part of this scheme
|The scheme is valid for both senior citizens and the general public
|The scheme can be availed by educational institutions as well
|This scheme is open for both single and joint accounts
|Joint-stock firms can apply to be part of this scheme
|Partnerships and clubs, etc., are eligible to apply for the scheme
To Sum Up
As discussed above, the FD Double Scheme is profitable for people to invest in to earn attractive returns over a specified duration. This is a highly secure plan that is sure to yield assured returns.
It depends on factors like tenure, investment amount, and interest rate for the money to double.
Yes, there will be a TDS deduction for the interest accrued on your investment.
It depends on the bank or the financial institution where you want to open the FD Money double scheme account. Usually, the minimum deposit amount starts from INR 100 – INR 1000.
In 5 to 10 years, depending on factors like tenure, ROI, and amount invested.
PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.
Taxpayers can claim tax deductions under section 80DDB of the Income Tax Act, 1961, on the treatment expenses of certain specified diseases. This deduction can.
In most cases, House Rent Allowance (HRA) is a part of employees' salary and they can claim an exemption for HRA. Hence, if an employee.
You may already know that a rental income or the money earned from renting a property is subject to TDS or tax deducted at the.
Updated on Feb 21, 2024 We know that almost every individual owns a savings bank account. We also know that the interest earned on your.
Every taxpayer in India has to pay taxes on their income. However, the Income Tax Act offers various options to avail of exemptions in different.
Charity or giving donations is a beautiful deed. It not only brings peace of mind and inner happiness but also allows people to earn tax.
Speak to our advisor
Mahindra Insurance Brokers Limited (A Mahindra Group Company) - Unit-202, A-Wing, 2nd Floor, Amiti Building, Agastya Corporate Park, Kamani Junction, LBS Marg, Kurla West, Mumbai - 400070. Tel: +91 22 66423800
Licenced by IRDAI License No. 261; License Validity : 17-05-2025; Category : Composite Broker; CIN : U65990MH1987PLCO42609 Member of Insurance Brokers Association of India (IBAI).
Insurance is the subject matter of solicitation.
For a seamless experience, use the latest version of Chrome/Firefox/Internet Explorer.
Copyright © 2024 Mahindra Insurance Brokers. All Right Reserved.
Verify your number to activate your best premium offer
Please enter the OTP sent to XXXXXX 4099 to continue