How to double your money in the bank

Earlier, money deposited in the bank would double in five or six years. It is no longer like that. After fixing the interest rate on loans at 9 per cent and interest rate on deposits at 6 per cent, it now takes double the time to double the money.

It takes 7 to 12 years depending on the bank. This is about fixed deposits. There is also opportunity to double the money by making deposits every month. In that case it may take longer.

The rest depends on the customer. He has to select a bank, taking several factors into consideration. First, one should consider the standard of the bank and default loan records. The client can look into who are on the board of directors and in the management.

In case of fixed deposits, the bank has no chance of any change in the interest rate that it had promised to double the money on the first day of contract. The rule is the same for the monthly saving schemes or DPS too. There are two options for monthly deposits. The rate of interest is fixed in one option while in the other option, the bank has the power to change the rate. The customer can often be deceived if he signs the contract without reading or understanding the terms. Sometimes such cases go to the court too.

Each bank has highlighted its various options including fixed deposit for depositing money on its website. Almost all the banks have programmes to double money. As the state-owned banks are no longer offering FDR for long term, it is irrelevant to discuss how long it takes at these banks. However, it takes less time to double the money at some private banks.

According to Janata, Agrani and Rupali bank, they deposit FDR for three months to two years on an interest rate of 5 to 6 per cent. Among them, Rupali Bank receives deposit for three years on 5 to 5.50 per cent interest.

Pubali Bank doubles the fixed deposit in nine years on 8 per cent interest. The deposit gets double in 12 years at Uttara Bank on 6 per cent interest. Premier Bank takes 90 to 96 months on 6 per cent interest. It takes eight and half years at Prime Bank.

The new generation bank South Bangla Agriculture and Commerce Bank has promised to double money in 7 years offering over 10 per cent interest. It will triple the deposit in 11 years and 5 months. Padma Bank will take 10 years to double the deposit and 15 years to triple it.

Not much paperwork is required to deposit money. The bank will finish procedure in one hour after submitting the application form along with two passport size photographs, photocopy of National Identity Card or passport.

One can get up to 80 per cent loan against the fixed deposit anytime. This is an added benefit over investment in savings certificate.

Rupali Bank managing director Mohammad Obayed Ullah Al Masud said, “As the interest rate is low now, many don’t want to deposit money with the bank on long term. Also, it’s not yielding much results for depositing money for long on part of the bank. So, we have moved away from programmes that double deposit in 7 to 10 years.”

*This piece has been rewritten in English by Nusrat Nowrin.