All You Need to Know About FD Double Scheme

Manish Kothari
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isVerifiedExpertAuthor is a Zfunds Verified Expert
Manish Kothari

What is FD Double Scheme

Every investor out there would like to see their wealth and savings go double and this has led many financial institutions and banks to introduce investment alternatives that will help them to accomplish this vision. While it may not be feasible and possible to double the funds overnight, there are options through which money can actually double with limited or minimal risk. Fixed Deposit Double scheme is a kind of FD that can help investors to double their investments in a secure and safe manner. This scheme is usually offered by banks and financial institutions and requires investors to deposit certain funds for a particular tenure. The interest that is earned on these FDs will double eventually and handed back to the customers at the end of the tenure. The workings of these FD is such that they operate in a way that the interest rate and tie horizon align with one another and double the sum, which is then paid to the depositor on maturity. 

In this article, we will discuss different aspects of this scheme and get a deeper understanding.

FD Double Scheme Features


The risk can be considered identical to the risks possessed by any other Fixed Deposit. Comparatively, the bank FDs have less risk as the interest rates/returns are not directly linked to the stock market, and investors are offered fixed returns.


The minimum amount to initiate a double scheme FD is in hundreds or thousands while the maximum limit stands at lakhs or any amount, which makes it flexible and feasible for every investor to invest in these schemes depending on their financial condition and position. (Deposit amounts and interest rates differ from bank to bank)


Nowadays, banks have amazing infrastructure which makes it very convenient and easy for investors to walk in and start a Fixed Deposit. Some entities also offer doorstep services via online infrastructure. 

Interest Rates

The interest/return rates are aligned with the tenure so as to double the funds of deposit after a fixed time period. The interest rates are decent and vary from bank to bank. 


The sum deposited in these FD schemes can be pledged to get loans from some commercial banks that facilitate and allow loans against FD. 

Premature Withdrawals

The terms and conditions regarding premature withdrawal vary across banks. Usually, the banks allow premature withdrawals to investors but subject to applicable penalties. 


While applying for a double scheme Fixed Deposit account, depositors can opt to nominate another person in the process. 

Also Read : SBI Bank Fixed Deposit Interest Rates 2023  

Banks FD double Scheme

Bank of India Bank Double Benefit Term Deposit 

This plan offers a higher return on the principal at the end of the stipulated tenure as the interest is compounded quarterly. Nevertheless, the principal and returns accrued are payable at the end of the tenure for which the plan is started with the bank. This plan is ideal for short & medium-term investors who aim to invest for 6 months to 10 years.

Currently, many banks are not offering Double FD schemes. But it is expected that these schemes will soon be offered in near future. To get regular updates regarding the same, you can check out this space for more such related articles. 

Difference Between FDs and Double Scheme FDs

When we talk about the usual Fixed Deposit Scheme, the investor is given a wide choice to opt from different options that have different interest rates and tenure. The longer the tenure, the higher the interest rates will be. These rates vary from bank to bank and are complemented with higher rates for senior citizens. The interest payouts are made annually, semi-annually, quarterly or monthly. The principal along with applicable returns is paid back to the investor at the time of maturity. 

Now if we talk about the Double Scheme Fixed Deposits, here the tenures are predetermined and certain. The investor will receive double of their funds at maturity and throughout this period, the returns are constant which makes sure the fund is actually doubled in the given tenure. The interest thereon gets reinvested in the principal amount benefitting from the power of compounding. If mathematically we come to the computation, the interest on Double FDs will most often be higher than usual FDs. There are no payouts of interest during the tenure as it is paid at the time of maturity along with the principle. 

Frequently Asked Questions (FAQs) - FD Double Scheme Online 

Q. Is FD Double Scheme Save for investment ?

A. Fixed Deposit double schemes are safe investments as they are offered by banks. These fixed deposits Scheme  guarantee returns and pays the principal plus the interest in a lumpsum at the time of maturity.  

Q. What is fixed deposit double scheme ?  

A. These FD Schemes offered by banking institutions and needs entities to deposit particular sums for a fixed period.

Q. Will TDS be deducted on interest income?

A. Yes, TDS will be deducted but in cases where the interest income received by the investor in an FY exceeds Rs.40,000.

Q. Are double scheme fixed deposits accounts auto-renewed?

A. Most banks offer auto-renewal options so it is possible. But to stop the renewal of FD, a prior notification with the bank needs to be sent.

Q. How does money gets doubled in this scheme?

A. As discussed in the article, the tenure and interest rate align with one another and the reinvestment of interest result in doubling the funds at the time of maturity of the plan.

Q. Is the interest rate similar for everyone?

A. The returns are the same for general citizens. Nevertheless, the scheme offers higher interest rates to senior citizens & members of the armed forces.   

Also Read : 

SBI Bank Senior Citizens Fixed Deposit 

Post Office FD Scheme 

How to Close Fd in SBI

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