What is the taxation on the FD double scheme?

Interest earned on fixed deposits is taxable under the head "Income from Other Sources" as per the investor's income-tax slab. TDS is deducted under Section 194A at 10% if interest exceeds ₹50,000 per year for regular citizens and ₹1,00,000 per year for senior citizens (FY 2026–27). Eligible individuals can submit Form 121 to avoid TDS.

Where can we get the FD double scheme?

You can invest in cumulative fixed deposits offered by banks and financial institutions, which may help your investment grow significantly over time through compounding. Always compare interest rates, tenure, and terms before investing. Banks do not officially sell products called "FD Double Scheme."

Is there any minimum and maximum deposit amount for the FD double scheme?

The minimum and maximum deposit amounts vary among institutions offering cumulative fixed deposits. It is advisable to check with the specific provider for their terms and conditions.

Can we renew the money double scheme?

Renewal options for long-tenure FDs depend on the terms set by the bank or the financial institution. Some may offer automatic renewal, while others require manual renewal at maturity.

Can I get a loan against the FD double scheme?

Many financial institutions allow loans against FDs, including long-tenure cumulative FDs. Banks typically offer loans of up to 70%–90% of the FD value, depending on internal policies. Check with your bank for more details.

Is premature withdrawal allowed in the fixed deposit double in 5 years scheme?

Irrespective of the tenure, premature withdrawal depends on the terms and conditions of the bank or financial institution. However, it may come with certain charges or reduced interest rates (typically 0.5%–1% penalty).

Is Fixed Deposit Double Scheme safe?

Yes, it is generally considered low-risk because it works like a fixed deposit. Bank FDs are insured up to ₹5 lakh per depositor per bank under DICGC. However, safety still depends on the bank or institution's credit quality and terms.

How does money double in a Fixed Deposit Double Scheme?

The invested amount grows through fixed interest and compounding over a pre-defined tenure. The maturity value may become approximately double if the rate and period are sufficient (e.g., at 7%, it takes approximately 10.3 years to double based on Rule of 72).

What documents do I need to submit to open a Fixed Deposit Double Scheme?

Usually, you need PAN and KYC documents such as Aadhaar, passport, voter ID, or driving licence. The entities may also need incorporation, partnership, trust, or board documents depending on the applicant type.

What is Fixed Deposit Double Scheme & Its Benefits?

Fixed Deposit Double Scheme: List of Banks Offering FD Double Scheme

6 min read•Updated on 19th Jun, 2026•by Angel One

To make Fixed Deposits (FD) more appealing, some banks and financial institutions now offer Fixed Deposit Double Schemes, which allow the invested amount to grow over a set period of time by leveraging the power of compound interest. These schemes are suitable for long-term financial planning since they provide predictable returns with little risk.

Investors simply deposit a large sum for a set period of time, and the earned interest contributes to long-term wealth growth. Learn what the FD Double Scheme is, its benefits, eligibility requirements, and the banks that now provide this investment option.

Key Takeaways

“FD double scheme” is not a standard, regulated bank product name in India; it is usually an informal term for a long-tenured fixed deposit that may grow substantially through compounding.

The maturity value of an FD depends on the interest rate, compounding frequency, and tenure, so the principal does not automatically double in every case.

Individuals under the old tax regime can still claim deductions up to ₹1.5 lakh under Section 80C, but those following the new tax regime cannot claim these deductions.

Effective April 1, 2026, Form 121 is the new unified self-declaration form in India, replacing Forms 15G and 15H, enabling individuals to receive interest income without TDS if their total estimated annual income is below the taxable limit.

What is the FD Double Scheme?

The FD Double Scheme is not an officially named banking product in India. It is an informal term used to describe a long-term cumulative fixed deposit where the invested amount may approximately double over a predetermined tenure through the power of compound interest. The scheme works on the principle of compound interest, where the interest earned is reinvested, helping the deposit grow steadily over time.

Here are some of the key features of the FD Double Scheme:

Offers fixed and assured returns

Uses the power of compounding to grow investments

Investment tenure usually ranges between 5 to 10 years

Interest rates vary across banks and financial institutions

Suitable for conservative investors seeking capital safety

Here’s an example scenario. Suppose Mr A invests ₹50,000 in an FD Double Scheme at an annual interest rate of 7% p.a. (compounded quarterly), which is representative of mid-tenure FD rates offered by scheduled banks in 2026. Hence:

Investment amount: ₹50,000

Interest rate: 7% per annum (compounded quarterly)

Estimated doubling tenure: Approximately 10 years (basis: Rule of 72, i.e., 72 ÷ 7.19 ≈ 10.01 years)

By the end of the tenure, the investment would grow to approximately ₹1,00,000 purely through the power of compounding, without any additional contribution.

Note: The exact tenure required for the deposit to double will vary based on the specific interest rate, compounding frequency, and the terms set by each bank. Investors should use an FD calculator to estimate their maturity value accurately.

Read More About: What is Fixed Deposit?

Eligibility Criteria For the FD Double Scheme

The eligibility requirements for a Fixed Deposit Double Scheme in India are broadly as follows:

There is no minimum or maximum age restriction for individual applicants.

Resident individuals, Hindu Undivided Families (HUFs), sole proprietorships, partnership firms, companies, trusts, and clubs are generally eligible.

Both single-holder and joint-account FDs are permitted.

Non-Resident Indians (NRIs) should check with their respective bank, as eligibility for specific long-tenure schemes may vary.

Investors must note that eligibility terms may differ across banks and financial institutions; investors are advised to confirm with their chosen bank before applying.

Advantages of the FD Double Scheme

Here are some of the key advantages:

Compounded growth: The scheme leverages the power of compounding, where interest earned in each period is reinvested to generate further returns. Over a long tenure, this leads to steady and accelerated wealth accumulation even without any additional investment.

Fixed returns: The interest rate is locked in at the time of deposit, providing a predictable and stable income stream unaffected by market fluctuations. This makes financial planning more straightforward for conservative investors.

Capital appreciation: With the principal amount doubling within a specified period, investors experience capital appreciation, providing a clear financial goal and a tangible increase in wealth.

Risk mitigation: Unlike market-linked investments, the FD Double Scheme offers a secure option with minimal risk, making it suitable for those prioritising capital protection.

Long-term planning: This scheme is ideal for individuals with a long-term financial horizon, providing a disciplined approach to wealth-building and achieving financial goals.

Read More About: Compounding in Fixed Deposits

List of Banks Offering FD Double Scheme in India

Several public sector banks, private sector banks, and small finance banks across India offer long-tenure fixed deposit schemes where the invested amount can potentially double over the deposit period through the power of compounding.

Some of the major banks offering long-tenure cumulative FDs (5–10 years) where investment can potentially double include:

Bank Type	Bank Name
Public Sector Banks	Typically offer tenures up to 10 years with rates ranging from 6.25%–7.00% p.a. for general citizens (as of May 2026). These are government-backed and carry the DICGC insurance cover up to ₹5 lakh per depositor.
Private Sector Banks	Offer competitive rates, often with digital FD booking. Rates for long-tenure FDs generally range from 6.50%–7.40% p.a. depending on tenure and deposit size.
Small Finance Banks	SFBs continue to offer higher FD rates compared to traditional banks, with rates up to 8.10% p.a. for general depositors.

Note: Small Finance Banks often offer higher FD rates (up to 7.75–8.5% for senior citizens) but ensure the bank is DICGC-insured before investing.

Also Read More About: How to Invest in Fixed Deposit?

Fixed Deposit Double Scheme vs Normal Fixed Deposit Scheme

Here’s a table to understand the differences between a regular fixed deposit and a fixed deposit double scheme.

Criteria	FD Double Scheme	Normal FD Scheme
Interest Rate	Same fixed rate as a regular cumulative FD of the same tenure; the doubling effect comes from compounding over a longer period, not from a higher rate	Fixed and predetermined rate.
Maturity Period	Typically longer	Varies, i.e. can be short or long term.
Returns	Higher potential due to compounding	Fixed returns
Principal Growth	Doubles over a specified period	Principal remains the same
Flexibility	Usually less flexible with premature withdrawal	More flexibility, may allow premature withdrawal with penalties
Goal	Ideal for long-term wealth accumulation	Suitable for various financial goals, short or long term
Income Frequency	Interest compounded, maturity payout	Regular interest payouts, maturity payout

Taxation on FD Interest

Interest earned on fixed deposits is taxable under the head "Income from Other Sources" as per the investor's income-tax slab.

Tax Aspect	Details
TDS Threshold (Regular Citizens)	₹50,000 per financial year (FY 2026–27)
TDS Threshold (Senior Citizens)	₹1,00,000 per financial year (FY 2026–27)
TDS Rate	10% (20% if PAN is not provided)
Form to Avoid TDS	Form 121 (replaces Forms 15G/15H from April 1, 2026)
Eligibility for Form 121	Resident individuals and HUFs with nil tax liability
Section 80C Deduction	Up to ₹1.5 lakh for tax-saving FDs (5-year lock-in) under old tax regime only

Conclusion

The long-tenure cumulative fixed deposit (informally called "FD Double Scheme") in banks is a suitable investment option for individuals seeking stable returns with minimal risk over the long term. By leveraging the power of compound interest, the scheme helps investors gradually grow their savings and potentially double their investment within a fixed tenure. It combines the safety of traditional fixed deposits with the advantage of long-term wealth creation.

Before investing, compare institutions based on interest rates, compounding frequency, tenure, premature withdrawal terms, and DICGC deposit insurance coverage. Using a reliable FD calculator can help you estimate the exact maturity value and plan for your financial goals more effectively.

Looking to invest? Open a Demat Account with Angel One and start trading seamlessly.