People normally (and obviously) get attracted when they see schemes that ‘double their investment’ in so and so years. And naturally, where there is greed, there is place for risk too. Till this time, these kind of offers used to come from little known companies that came under this ‘high risk’ category. But, if the same offer comes from a Public Sector Bank; people will be more confident in putting their money in.
Central Bank of India, a leading Public Sector Bank in India, functioning under Government of India and most importantly, regulated by the RBI, has launched a deposit scheme (called ‘Cent Double’) that will ‘double the deposit amount’ in 7 ½ years. For this to happen, the interest rate on deposits amounts to 13.33%
per annum (this will be effective interest rate over 7 1/2 years, with interest reinvested and total amount compounded annually).
For senior citizens, the doubling happens 3 months in advance, that is by 7 ¼ years. And if you are staff of Central Bank of India and even better if you are ex-staff of Central bank and are currently a senior citizen, you double your amount in 6 years 11 months and 6 years 4 months respectively.
If you stay in Urban or Metro areas, the minimum deposit should be Rs.10000 while for Rural and Semi-Urban areas, it is Rs.5000.
Obviously, for schemes like this, a maximum amount that you can invest will be mentioned and here, it is fixed at Rs.1 Crore.
It’s simple, invest Rs.1 crore (maximum investment amount should be less than Rs.1 crore) in Central Bank of India today and see yourself as a double crorepati 7 ½ years later. Like for most deposit account, the bank will grant loans with your cent double deposit account as a guarantee.
Update: The scheme has been terminated at the end of 2011-12 financial year (31 March 2012) and the bank no longer accepts deposits under this scheme. It may or may not launch the scheme in the future.