Your money doubles in 87 months. That should attract quite a few people out there. Hoping so is SBH, which introduced ‘SBH Double’ that will double your investment (fixed deposit) in exactly 87 months. If you happen to be a senior citizen, you can achieve the double figure 4 months earlier, in just 83 months.
The minimum amount to be deposited is Rs.10000. By their estimates, over the 87 months period, the interest rate offered will turn out to be 13.86% (or 14.56% in case of senior citizens in 83 months).
The benefits you have with SBH Double are that you can even take loan with this deposit as security. Also, you can cancel your SBH Double account once 60 months have been completed without any pre-mature penalty.
This kind of scheme is nothing new from banks’ as we’ve earlier seen Central Bank offering its Cent Double scheme, where your deposit will double in 84 months.
Since this is a long term investment (7 ½ to 8 years period), you have to investigate if you will have any need for money with in this period. If not, you may consider this as a ‘safe option’. If you can take risks, you may also want to consider investing in stock markets since they prove to be quite efficient for long term investors and offer (generally) greater returns.
Remember that although this scheme is for over 5 years, you will still have to pay taxes over your returns from SBH Double. In other words, this is not a tax saving scheme.
Update: When this scheme was introduced in 2011, the starting interest rate is 9.50%. Right now, the current interest rate offered under this scheme (which is now named as SBH Double ka Meetha) is 9.25%. But, with interest added back and compounded, the final yield will still be well over 13% but definitely it will take that little bit longer than before to double your money.
You can also open SBH Double via its Internet Banking site. Following the specific rules of Double scheme, you may even close it prematurely online.