How to become millionaire / Crorepathi by investing in a bank recurring deposits

Overview – How to become millionaire / Crorepathi by investing in a bank recurring deposits

Is it easy to become millionaire / Crorepathi without taking risk in investment? No investment in stock markets or in mutual funds, but can we attain this goal by investing in bank recurring deposits? Yes it is possible. Once you start investing on regular monthly basis for longer term in bank recurring deposits, your money grows faster. You would have heard about compound interest.

If you invest Rs 100 at 8% interest, for one year, your money would be Rs 108. In Second year, you earn interest of 8% on Rs 108 and not on Rs 100. This is called compound interest.

Your investment amount + interest would get re-invested each year (or Quarter) for longer term thereby benefitting through Compounding.

What are bank recurring deposits?

An investor can invest a fixed amount per month in bank recurring deposits for a specific period. The investment amount can be Rs 100 and with no upper limit. Currently Indian banks deposit rates are ranging between 8% to 9% on recurring deposits. Choose a bank recurring deposit which earns highest interest rates.

How to become millionaire / Crorepathi by investing in bank recurring deposits?

  1. Save Rs 1,600 per month: Are you aware that, if you save Rs 1,600 per month and invest in bank recurring deposit for 8.5% interest rate for 20 years, your money would grow more than Rs 10 lacs.
  2. Multiply above savings to 10 times i.e. Save Rs 16,000 per month and invest for 20 years at 8.5% interest rate, you would earn Rs 1 Crore? No risk, no second thoughts, just invest in bank recurring deposits and forget.
  3. When you want to become Crorepathi? See how much you need to save and invest in bank recurring deposit earning 8.5%.

    1. 10 years – You need to save Rs 53,500 to become Crorepathi
    2. 15 years – You need to save Rs 28,000 to become Crorepathi
    3. 20 years – You need to save Rs 16,000 to become Crorepathi
    4. 25 years – You need to save Rs.9,800 to become Crorepathi
    5. 30 years – You need to save Rs.6,100 to become Crorepathi

Conclusion: This is one of the best ways to become millionaire/Crorepathi. Start investing early in bank recurring deposits, as low as Rs 6,100 for 30 years @ 8.5% interest rate to become Crorepathi. Choosing a recurring deposit which offers highest interest rates would help you to reach your goal faster. Please refer my article on top bank deposit rates for maximising the returns. This is not a option for people who want to get rich quickly.

Readers, are you investing in bank recurring deposits? What is your experience?

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Article by Suresh

Suresh KP i.e. me have written 500+ articles on this blog. I love doing analysis and identifying the Best investment options.


  1. Binu K Menon says:

    Nice post

  2. jay says:

    Hi this’s jay..,i want to invest 10000rs per month ,how much i cn get after 5years…

  3. priynka says:

    i am getting 16000 as interest from fd of 3 years….ky muje iske liye tax dena hoga ky..

  4. Arun says:

    As you said if I invest 16,000 for 20 years I’ll get a crore rupee in my saving account rite so at that time they will deduct anything in the name of tax.

  5. Kashyap says:

    Hi im 27 years old male i want to invest Rs 4,000 per month to earn a good return after 5 years.

    I have started investing Rs 10,000 montly from 19/08/2014 on Recurring Deposit of SBI for 1 year at 9% . I don't have any insurance policies at present. Should i stop the stop the RD and start investing in something else ?

  6. rajeev says:

    hello this is rajeev .
    àctually wat is meant by recurring deposit . does banks offers rd’s for 5 years and is there any risk factor in this? can i withdraw my money in emergency.

  7. Anita says:

    Hi Rajesh,

    It is really very useful. I used to have lot of RD for Short term and i use to close that if any need arise also. After reading this article i just calculated the long term benefits, and it is amazing. I should not close any RD going forward and it yeilds good return. Thanks for sharing with us.

    • deepak says:

      Dear Suresh,

      Your calculation is really good. But  what about inflation…. the thief which slowly eats up your saving and when you factor in inflation, the actual numbers can take your breath away.

  8. jose says:

    Hi Suresh,

    Banks offer only 10 year RD Scheme.Then how can i opt for a monthly investment of 28,000 for period of 15 yrs/16,000 for a period of 20 yrs to become a Crorepathi?


  9. Prem says:

    Dear Suresh,

      I am 27yrs old Working in South Africa . I want to work here only more 5 years , i want to know how much amount i have to invest and where to invest to get minimum of 50 lacs in 5 years currently i have an bank FD for INR 5 lac which will mature on next year + 5000 RD with bank opened in 2011 & 1000 SIP in SBI Magnum Tax Gain investing from 2010.




    • Suresh says:

      Prem, For NRI’s good way to invest is bank FD where interest is not taxable. Other options is to look for mutual funds. consider diversfiied funds and large cap funds for next 5 to 8 years investment. Check my articles about top mutual funds.

  10. RAM says:

    Hi suresh i would like to invest 60k in FD in IOB.How much would i get in returns per month and can i withdraw the amount in case of emergency? kindly suggest

    • Suresh says:

      Hi Ram, IOB is good bank you can invest. You can check latest interest rates about hte maturity amount. You can withdraw in case of any emergency, however they might charge you premature withdrawal. What you can do is invest small amount seperately in seperate FD In case of emergency, you can break that instead of breaking your entire FD amount.

  11. raghu says:

    dear sir,

    i have recently started investing 1000 rs/month in the sip for the tenure of 20 years, on meturity will i get the amount greater that my investment ? i have this doubt as i am dealing with the share market ( what if NAV drops at the time of meturity)

  12. Thomas says:

    Hi Suresh,

    I couldn't find any banks which offer variable Recurring Deposit schemes having maximum tenure of 15+ years. Could please help me with this?



    • Suresh says:

      Thomas, The idea is to create RD for long term. Currently banks are offering RD for 10 years only. You need to re-create after 10 years. Yes currently there are no 10+ years RD schemes.

  13. Dr. Suman K Kasturi says:

    Dear Suresh,

    My only question is "Can I get an assured return of 1500/- p.m or more on every one lakh rupees I would like to invest?" I want the return as a regular income, everymonth. If there is any possibility, please notify me through e-mail. I am in need of your suggestions for few of my friends, who are about to retire and want to invest in such plans.

    Thank & Regards!!

    Dr. Suman K Kasturi

    • Suresh says:

      Hello Dr. Suman, Since you wanted assured return, there are few options like Bank FD where you can get 9% return. You can opt for Qtrl pay out or annua payout. You may expect Rs 1,500 per month. However this is taxable income. If you want higher tax free, you can opt for tax free income like IIFCl Tax free bonds or NHPC tax free bonds where you would get 8.92% tax free returns. It would be almost Rs 1,500, but it would be paid per annum. Beyond this, there are other options, but they are little riskly or they would give lower returns.

  14. karthick says:


    I am going to buy a plot for some 15 lakhs.I have planned to pledge jewells and rise money at may be 9.25% or so .i also have some deposits for 8.5 lakhs at 10% interest.some advice to close the deposit and reduce the loan pressure.i am not interested in it. i have planned to repay the loan by paying arund 70000 per month.will it be wise to break the fd and create it later ?or can i go as planned. do advice.thanks in advance.

    • Suresh says:

      Karthik, You should understand that 9.25% interest rate is on home loan and it is floating rate. Means this would fluctuate. Over a period of time it may go to 10%+. Now coming to plot, I think the interest rates would be high. Let us assume both are same for a moment. Taking home loan at say 9.25% and getting FD interest at 10%, you may benefit 0.75% on Rs 8.5L which translates to Rs 6,000+ By paying Rs 70K per month, let us assume that you would finish your loan in 5-6 years. Means you would benefit for Rs 30K to Rs 36K (approx) in entire process. Beyond this you are taking risk of high interest rates for plot + floating rate increase risk. Do you want to take these risks for small savings ? If I am in your place, I would use Rs 8.5L and balance go for loan of Rs 6.5L and pay off this in next 10 months and create my new FD’s from 11th month onwards. Another way is don’t pay balance of Rs 6.5L after 10 months, but just pay EMI for Rs 20K to 25K per month and invest balance 50K per month in bank RD. There could be several other ways to do it, but I felt these 2 are good choices.

  15. Ashish says:

    Dear Suresh

    I have one 2 bhk flat worth Rs. 80 lacs & i want to sell it & want to get settle in my hometown. I need your suggestion of how to invest this amount so that i can get atleast 50thousand per month as a fixed monthly income for my monthly expenses. I am thinking of FD as one option but how many FD do i have to get done to save the tax also. Please suggest other option also if you have. i done have much knowledge about Shares,Equity or mutual funds. 

    • Suresh says:

      Ashish, My suggestions is to invest in Bank FD, Post office TD and other options. I got several queries about such investment options this week. I would provide an article early next week. Basd on that you can take decision

      • Ashish says:

        Dear Suresh

        Thank you so much for your answer. I will definately & desperately wait for your article next week. I hope & would like to request you that if you can cover up all the queries that came to you so far. There are few queries of mine listed below :-

        1. I have four members in the family can i split the FD in four parts of 20 lacs each on every family memebers name to save the tax.

        2. Is it safe to do the FD in one bank only (approx 80 lacs).

        3. Best options to save the taxes.


        Ashish Gautam

  16. Tarun says:

    Hello Sir,

    I wish to invest monthly 2000 INR in RD for 20 years. Can you please let me know which bank provides monthly deposit facility?

  17. hitesh says:

    Dear Suresh.

    I'm working in gulf and have an NRE account.

    My age 29 and married. planing to work for another 5 years only.

    I want to save 50 lakhs as early as possible with a monthly investment of around 90K. without any risk.

    im planning to open an RD account of 87K for 4 years at 9% intereset. that will give a sum of 50 lakhs on maturity.

    since it is an NRE account no tax deduction is applicable. please correct if im wrong.

    I dont have any idea about MF and Equity so i dont prefer it as of now. 

    Please suggest me is these is the right way im going towards my goal.

    or is there any other more efficient and safe way to reach my goal and ultimatly become financialy independent.

    Thanks & regards,



    • Suresh says:

      Hitesh, 1) About tax component, yes, if you invest in NRE account, the returns which you get are not taxed 2) If you want to invest in mutual funds, invest in variety of funds and choose 5 to 7 mutual funds so that you diversify your portfolio. 3) If you do not want to invest in MF/Equity, you have limited options like FD/RD or real estate or if your parents/spouse is in India, you can invest in post office saving schemes on their names


    Dear Suresh Sir, from past 5months im working in one pvt ltd company n i am getting 9kper month and i open rd account in sbi bank with 2years tenure and 2k/month.Is it better for 2 years or otherwise should increase the tenure.

    • Suresh says:

      Anvesh, If you are young investor, you can take some risk and invest in stocks and mutual funds. RD for 2 years, you would get less interest. Invest in diversified funds or large cap funds to gain more. However even mutual funds investmnts should be done for long term.

  19. Renjith says:

    Hi Suresh,

    Thanks for providing this excellent article…

    I have a query. Generally banks are offering RD with the maximum duration of 10 years… is any bank providing recurring deposit for the duration of 15 or 20 years. If yes, can you kindly provide the bank names. I believe investments for 15 or 20 years will provide better returns because we will get the full benifit of cumulative interests.




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