(Last Updated: May 31, 2019)
Get Zerodha Account
Get Zerodha Account

What is Fixed Deposit Double Scheme? Money Doubling Schemes to Know



  • Fixed Deposit Double Scheme is meant to double your investment over a specific period of time. It is the interest earned that eventually doubles your money.

    Fixed Deposit Double Scheme:
    We all want to earn more money in a short period of time. There are many popular methods wherein; individual can invest in the share market or mutual funds or gold. But, the same is attached with high level risk.

    So, everyone doesn’t have the ability and willingness to take the risk involved with these earning methods.

    Let me take you through some conventional and low risk method with over the average return like: Fixed Deposit Double Scheme.

    What is Fixed Deposit Double Scheme?
    A Fixed Deposit Double Scheme is a scheme which is mainly launched by banks, wherein an individual investor needs to deposit fixed amount of money for pre-determined tenure of time.

    The interest earned on this sum is eventually re-invested in the scheme and the complete amount is paid along with complete interest after the maturity. This scheme is also known as cumulative fixed deposit scheme.

    Now-a-days many of the commercial, private and government banks and financial institution provide the benefit of this scheme to their account holders.

    This scheme is very similar to regular fixed deposit scheme except for below points.

    Fixed deposit Double Scheme vs Normal FD:
    The features of the schemes are as follows:

    • The differentiating feature of the scheme is double earning. This means the interest earned on the scheme is re-invested in the scheme. Thus the total yield rate of interest is higher than regular risk free scheme. Thus the rate of return on investment (ROI) is higher than normal and regular fixed deposit schemes.

    • This investment scheme cannot be opened for shorter period like in days or a month. The tenure is comparatively longer than normal FDs.

    • There is no intermediate or regular payout. That simply means that the complete payment of investment along with interest would be made at the maturity date.

    • The terms decided at the beginning of the scheme i.e. rate of interest and period of investment cannot be modified during the tenure of the investment.

    Benefits of FD Double Scheme:
    Let's now discuss the exclusive Benefits of FD Double Scheme:
    So, the overall advantages of this fixed deposit double scheme as below:

    • Easy to open: Any Individuals or companies or joint account holders can open this FD with banks following simple online or offline procedures. The interested investor after providing AADHAAR card details and other information like of tenure, amount and scheme holder name and address, can open the account.

    • Flexible: Every Individual investor is free to choose according to their financial position and market condition; the sum of amount the person is willing to invest for the tenure of such a deposit.

    • Collateral security: The scheme document can provide collateral security in case of loans. Many of the banks now-a-days offer loans against these fixed deposit schemes.

    • Easy Nomination: The investor can nominate the secondary account holder on their behalf of them by easily following either online or offline procedure.

    • Rate of Interest: The rate of interest under this scheme is higher than other related fixed deposit.

    No doubt, the said scheme has its own pros (higher ROI) and cons (fixed tenure and no modification of terms).

    At the end of the day, we need to make financial decisions based on our future prospects and current capability. Thus, every investor must analyze the same and take up their decision accordingly to satisfy their investment requirements.

    And as far as I see it “Fixed Deposit Double scheme” is a very viable and risk free option to ensure above average return. What do you feel?



Get Zerodha Account
  • 1
  • 5
  • 9
  • 3
  • 1
  • 1
  • 4
  • 1
Disclaimer: Any views/recommendations expressed in the forum, of the individuals are their own only. Fintrakk doesn't endorse or recommend any financial product or views by the users of the forum. The information/comments on the forum should not be considered as a financial advise. Please do your own due diligence before investing. Fintrakk is not responsible for any financial loss to any of its visitor/user.