SBI Fixed Deposit Double Scheme 2020
Overview
Every individual in today’s financial world has a dream to double his/her money in a minimum time limit with the available investment option. This imaginative thought makes some people come up with the idea of fake or fraud schemes which claim that they can double money within a period or sometimes within a short span. This is not practical to increase the person’s money in a night. These schemes trap numerous people, and their dream of doubling their hard-earned cash remains in the idea only. However, if someone tells you that increasing your income is no longer a dream? The entire system is legal and is offered by some of the significant prestigious and nationalized banks of India, will you believe? So here is the doorway to double your hard-earned money, and this method is known as Fixed Deposit Double Scheme.
Background
A Fixed Deposit Double Scheme is a system or a plan which focuses on doubling customer’s investment over some time. The scheme is generally limited to individual banks and necessitates the customer to deposit a certain amount of money for a fixed period. The entire process is simple, while it offers handsome interest at the time of maturity. The interest earned on this principal doubles the amount, which is paid back to the customer at the end of the term.
Normal Fixed Deposit vs. Fixed Deposit Double Scheme
State Bank of India (SBI) offers a variety of investment options. Regular Fixed Deposits and Fixed Deposit Double Scheme are among those investment options and mostly belong to the same family. The only difference lies in choosing the tenure of the scheme.
Regular Fixed Deposits or Term Deposits is one of the chief options. It gives the flexibility to the account holder to decide the tenure of the deposit, which generally ranges between 7 days and ten years, the interest offered in this scheme ranges from 2.90% to 5.40% per annum for the ordinary peoples. Senior Citizens are offered an additional benefit of 0.05% on all the tenures. Thus the longer term you choose for your Fixed Deposit, the higher will be your income from the interest over the mandate. You receive the principal sum with excitement at the time of maturity.
On the contrary, in the case of the Fixed Deposit Double Scheme, the bank does not provide any flexibility to the account holder to decide the tenure; instead, the bank chooses to it on its own. Moreover, the interest remains fixed throughout tenure, which makes sure that the invested amount is doubled at the time of maturity. Also, the interest earned is different for different categories of account holders or investors, senior citizens and armed force personnel gain more attention compared to other types of investors.
Features
Fixed Deposit Double Scheme can provide a flock of gorgeous benefits and features. Some of them are discussed below:
- The bank offers a simple account opening procedure and is completely hassle-free.
- The bank gives power to the account holder to decide the amount to be deposited according to their financial position ranging from a few thousand to even lakhs.
- Many banks offer loans to the account holder to ensure that there is no pressure on their customers for the funding of these Fixed Deposits.
- Investors can nominate others on their behalf.
- An attractive interest rate is earned by the deposits, ensuring them to double at the time of maturity.
- Premature withdrawal of the amount is also allowed by individual banks.
Other Banks Offering this Scheme
Not only the State Bank of India, but more such prestigious banks offer Fixed Deposit Double Scheme. They are:-
- Bank of Baroda
- Allahabad Bank
- Tamil Mercantile Bank
- Punjab National Bank
- Oriental Bank of Commerce
Official Website
You can visit the online portal here.
Frequently Asked Questions
Q. What is Fixed Deposit Double Scheme?
A Fixed Deposit Double Scheme is a kind of Fixed Deposit which is aimed to help the investor to double their investment in a legal, safe and secure manner. This scheme is offered by banking organizations and depositing a certain amount of money for a particular period is mandatory. The money is doubled by the interest earned throughout tenure.
Q. Is the interest rate the same for everyone?
No, the interest rate is not the same for everyone. Different classes of people have different interest rates. Senior citizens and armed forces personnel are offered higher interests compared to others.
Q. Is investing money in a Fixed Deposit Double Scheme safe?
Yes, it is safe, secured, and legal to invest money under Fixed Deposit Double Scheme.
Q. Is there any minimum amount to open an account under the Fixed Deposit Double Scheme?
No, the bank provides full flexibility to the account holder to decide the principal sum to be deposited, taking into consideration the financial standing of the account holder.
Q. Does the bank provide loans against Fixed Deposit Double Scheme?
Yes, the bank provides loans against Fixed Deposit Double Scheme, to ensure no liability for the funds.
Q. How does the principal amount double in Fixed Deposit Double Scheme?
The first amount doubles on account of the interest earned, with interest component accounting for half the money.
Q. Are accounts auto-renewed?
Yes, unless the account holder provides any specific instructions, most banks offer auto-renewal of accounts. That means the interest earned on this deposit gets reinvested in the scheme.
Q. Will TDS be deducted on deposits?
Yes, Tax Deducted at Source (TDS) is applicable on the interest an individual earns and also depends on the guidelines issued by the Government from time to time.
Q. Who decides the tenure of the Fixed Deposit?
The bank decides the period of the Fixed Deposit.
Q. Whose return rate is highest: Normal Fixed Deposit or Fixed Deposit Double Scheme?
The return rate of the Fixed Deposit Double Scheme is higher than the Normal Fixed Deposit.