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 400+ articles on this blog. I love doing analysis and identifying the Best investment options.


  1. 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 ?

  2. 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.

  3. 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.

  4. 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?


  5. 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.

  6. 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.

  7. 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)

  8. 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.

  9. 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.

  10. 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.

  11. 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

  12. 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?

  13. 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.

  15. 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.




  16. Ananth says:

    Hi Suresh!

    Your investment strategies and suggestions are very informative and helpful. Thank you in advance for these suggestions. I have a couple of questions. I have an OCI status, currently Canadian citizen living in Canada. In 3 to 6 months time, I would be like to invest regularly into FDs, Mutual Funds, and/or Stocks. My target to start is roughly about 10,000 rupees per month.

    Can you please suggest me how best to enter into the India market, whether it is for FDs or Shares investment. Just an extra note. Since I have recently turned 40 with two kids aged 9 and 4, my appetite for risk is low to medium in nature. Thank you once again!



    • Suresh says:

      Ananth, If you are low risk investor, you should invest following options 1) Bank RD’s 2) Balanced mutual funds 3) Debt mutual funds 4) FMP Mutual funds etc.,

  17. Santosh says:

    Dear Suresh,

    Investing  5000PM in FD  or in RD for 10 years which is more profitable.

  18. rony says:

    HI Suresh

    Now iam working in abroad  iam married person we can both save one laks and little above that .we have a plan to work only five years over there .is it possible to make one crore within five years ,if its possible please guide me ,now we dont have any idea to nvestment just we are depositing to FD in coperative bank please give me some sugestion

    • Suresh says:

      Rony, To achieve Rs 1 Crore in 5 years for Rs 1 lakh investment per month, you need to get 18% returns. Alternative you can invest Rs 1.15 Lakhs per month for 5 years and can get Rs 1 Crore if you can get 15% returns. It is very much possible to achieve 15% returns provided you invest in multiple investment options. You should look for combination of mutual funds, growth stocks, bank FD and real estate. Regd mutual funds you should select diversified funds and large cap funds. Refer our articles on regd MFs to invest. Also invest 10% of portfolio in sector based funds. These are little high risk investment, but you can choose FMCG and Pharma MF’s. Invest in debt mutual funds too so that they would be beneficial during fall in interest rates. Regd stocks, you should invest like TCS or any other stock which is fundamentally strong and provides solid growth and returns. 

  19. Ramesh says:


    I want to invest a low risk investment of around 10 lks for my kids education, thy are aged around 8 and 10 now, please suggest me some good investment plans with low risk and high returns

  20. Namrata says:

    Excellant blog………………very good analysis done………………

    I am working woman, but needs to earn more to secure my son's future. Thinking of a small business which I can manage along with my other responsibilities. I have a PC at home., and i have taken one Work from home job, but not yet started working on it. What you think is it really workable….i,e, Work from Job is doing online surveys, online data entry, clicking AD's like wise. Is this online job profitable and the main thing is it really works?…………….pls tell me…..


    • Suresh says:

      Namrata, What is your aim. If you want to earn small amount of Rs 1,000 per month you can choose them. There are several good part time business ideas where you can earn thousands of rupees every month that too at your leisure time. You would not pay anything to me. But this is the fact. Please refer where we are posting several ideas for home based moms or college students or retired who want to work at their leisure time and earn money. 

  21. Nanmith says:

    Dear Suresh

    Excellent articles and suggestions offered. I have made some computation and want your opinion, and iam sure this would benefit other readers who are thinking on similar lines.

    Considering year 2020 which is age 40 for myself. Family of 2 adults, 1 child + 2 grandparents above 75 yrs age spending only on 'needs'. Monthly expenditure is 60K. 8% inflation assumed every year on monthly expenses. 6 Crore Corpus invested in FD yielding a conservative 7% int with 30% tax on interest.

    No loans. 1 home for staying and 1 x 3 BHK home yields 15k rent p.m. this rental income takes care of the maintenance exp of both the homes.

    will rotate 6 lakhs every month and do online stock trading with expectations of 30k profit per month (which is very much possible).

     this is totally a risk free, less headache plan. besides with FD schemes like double dhamaka which is currently offered by SBH the yirld returns are 14%, cause an investment of 50 lakhs gives 1 crore in 7 y and 7 m its comparable to less risk MF's

    Will the above be a safe assumption for retiring at 40 with above investment plan ? Please advise, if not then please advise alternatives.

    Yours Truly




    • Suresh says:

      Nanmith, I could not understand some of the points. Rs 6 lakhs investment in stock market getting Rs 30k per month, you said very much possible. don’t take me wrong. Stock market investment is not a game. You may loose your money too. If you have plan to retire at 40 age, my suggestion is to create “assets” that provide assure income with some risk. A debt mutual fund provide 9% to 11% returns. A post office scheme provides 8%+ assured returns. Bank FD would provide 8%+ returns. Stock marke may provide returns for one month, but not all times. 

    • Nanmith says:

      Hi Suresh

      I have been investing in stocks and have made 25 – 30k every month over the last 1.5 yrs..the idea is to pick up 6 good A list stocks and spread the 6 lakhs and sell it within a week or 10 days as and when the amount goes up. my target has been to reach 25k overall profit every month and i have made this amount consistently over last 1.5 years, hence feel its very much possible.

      besides the stocks, pls advise if the rest of the 6 crore INR investment in FD considering a conservative 7% returns + 30 % tax and 8% inflation every year, will this be sufficient to retire at age 40 ?




      • Suresh says:

        Nanmith, Thought inflation of 8% is higher side, your returns would be very hig comparing to your current expenses which is a good plan.

  22. maggie says:


    I am a OCI -australian citizen but returned to india. I want to invest about 20 lakhs in fixed deposits.I am not currently working and the interest earned will be my sole souce of income for me and my daughter.I am expecting to earn an interest at 9% for investing this money for 390 days with monthy interest option.

    What are my options so I can save on taxes.Also if my total interest on investments is less than 2 lakhs will I get any tax exceptions what do I need to do.Please guide me  in this regard. 


    • Suresh says:

      Maggie, Point no.1. To invest for 390 days, you can choose bank FD or Debt mutual funds. Bank FD’s would generate 9% interest rate (approx) and debt mutual funds would anywhere between 9% to 11%. Point no.2. If your total income including interest does not exceed Rs 2,00,000 in India, there is no tax. 

  23. Dev says:

    Hi Suresh, 

    I am new to this website/blog and found most of the topics really interesting and eye-catching. I along with my wife earning around 60000/month and money flowing outside in form of 50000/annum in HDFC investment plan and wife has a lic policy of 24000/annum plan and no other investment. Interested in going for real estate investment, stock market (as having some knowledge of stocking which I did before in equity), recurring deposit schemes, other investment and other schemes as mentioned in your crorepathi plans. I have a back of approx 6 lakh liquidity in account to invest at this time. So, please suggest me the very best way to put my money so that in long run after 20 -30 years can get a good amount as a saving for life time. 

    • Suresh says:

      Hi Dev, In current sitatuation, invest in Debt mutual funds or Bank FD only. Due to volatile market, majority of the mutual funds have returned minus 3% to minus 9% returns in last 9 months to 1 year period. You can systematically invest thru SIP to get more returns. All the beste.

      • Dev says:

        Hi Suresh, 

        Thanks for the suggestion, I am also thinking to invest some part in the property and some in the recurring deposit. Not sure about the investment in policies, as I think lot of policies makes us fook, end of the day. Don't know much about the debt funds. I am looking for a long term plan with a slow and steady investment, if you can suggest one. Also tell me how about the investment in good stocks, the blue chip stocks. 

        • Suresh says:

          Dev, the only way you can create faster wealth is investing in stocks, diversified mutual funds and some amount in Bank FD. It would depend on your risk appetite. Keep reading articles on our blog for the topics you are looking for

  24. dr sushil kumar jha says:

    hello suresh

    honestly one thing i must say ,your investment ideas are simple but very  informative,

    thanks for suggesting good ideas.

    i want to invest Rs.100000/-but where slight confuse

    my 80 c limit i.e rs 1 lakh is please suggest such investment ideas other than 80 c 

    • Suresh says:

      Hello Dr. Sushil. If you want to invest in other than 80C, that too a lumpsum amount, you can invest in balanced mutual funds and debt mutual funds. You can expect 9% to 12% annualised returns. Alternative if you are high risk taker, invest in company FD’s like Mahindra FD or unitech FD, however this involves risk.

  25. Gurmeet says:


    Well as you have explained about the compound interest so the same works with PPF as well,

    if you check the PPF calc your formula is wrong.

    e.g. 6,400 p/m INR = 76,800 INR P.A. for 5 years should give 10,000/- INR



    • Suresh says:

      Gurmeet, I could not get it. Can you pls inform where exactly it is wrong. I have calculated bank FD rate and not shown PPF computation anywhere. Am i missing anything ?

  26. chandra says:

    Hi Suresh,

    Can a FD be withdrawn before its maturity? How much would be charges in general?


    • Suresh says:

      Hi Chandra, It depends on the bank which you have chosen. Some of the banks are not charging pre-withdrawal charges. Check with your bank. 

  27. arun says:

    Hello Rajesh

    If we spent 53K per month as per example suggested by Suresh , and get 1 crore than how much TDS we need to pay on that money , assuming there is zero income from any other sources.




  28. BAJANI DINESH P. says:

    very good informations & guidance to gen.public. THANX

  29. Marine Mukherjee says:

    Good article Suresh ! But how do you continue with a RD for 10 or 20 or 30 years ? If the money is not reinvested it will never grow at compound interest rate and the 'crorepati' goal will not be reached.

    • Suresh says:

      Hi Marine, I agree that banks are offering RD only upto 10 years. One side it is good for investors. Few years back, I opened RD where I was getting 7.5% p.a. rate. Now I opened a RD 6 months back and I am getting 9.5% p.a. It could be otherway also. What I meant by this article is you can become crorepathi by investing in low risk investments like FD. You just need to choose a good bank and invest for long term. If you complete for 10 years, start another FD and re-invest this FD (lumpsum) for another 10 or 20 years.

  30. Rajesh says:

    Sir ,what  is the correct time to deposit money in ppf so I can earn max interest on it ,thanks

    • Suresh says:

      Rajesh, PPF interest are credited pro-rata. If you invest for 3 months, you would get 3 months interest only. Best way for tax planning is invest from Apr itself in such PPF every month

  31. hitesh says:

    Hi suresh,

    I need some financial planning tips from you.

    I'm an engineer and working in gulf, my monthly saving is approx 1 to 1.2 lakh per month,

    i want to invest money in such a ways that i can get an monthly income of around 40k to 50k,

    my current age is 29, i want to achiev these target by the age of 35, 

    i do not have any current bank balance as i have finished home loan,


    please guid me reaching my target .







    • Suresh says:

      Hitesh, If you want to get 50K per month after 6 years from now, you need a corpus of Rs 67 lakhs. For this investment, @ 9% bank interest, you would be able to achieve this target. You can invest in a combination of equity and debt for Rs 61,500 per month and easily achieve this target. This is what we educate our customers in our “paid services” section

  32. Raj says:

    Hi Suresh, Please email me with details as I am very much intrested in fixed recurring deposits scheme. 



  33. kranthi says:

    Is there any bank which lets you do RD for more than 10 years?

    • Suresh says:

      Kranthi, good question. Honestly, I do not have any answer. As per my knowledge banks do not offer RD, FD for more than 10 years as there are chances that interest rates would go down and they may need to pay higher rates.

  34. Vishal Gupta says:

    Hi Suresh,

    I have one doubt. If I will invest in FD for 5 year locking period then I will get tax benifit . But will the final amount received at matuarity will be taxable.

    If yes then how to get that 10(10D) benifit also.


    Vishal Gupta

    • Suresh says:

      Vishal, Interest on Tax saving FD (5 years maturity) are taxable. However bank would deduct TDS as per applicable rates if it exceeds Rs 10,000. Benefit 10 (10d) you are talking about is pertaining to life insurance maturity receipt and not bank deposits.

  35. Heeral Shah says:

    Good article to explain the very basics of RD's. But I don't know of any banks in India providing tenures of more than 10 years. 10 year RD does not seem sensible. Taking your Crorepati example of 10 years, one would effectively pay 53500 * 12 * 10 = Rs. 64 lacs to get Rs. 1 crore in the end. i.e. 56% return in 10 years. Mutual funds would also give equal or better returns than this with tax saving options.

    • Rajesh says:

      My friend heeral ,tds is not applicable on recurring  deposit money ….


      • Suresh says:

        Rajesh, TDS is not deducted by banks. Agreed. But the tax needs to be paid by individuals based on their income tax slabs.

        • Rajesh says:

          Dear suresh ,can I assume in this way in term of tds nd tax ! it better to go with ppf instead of recurring account as ppf seems  to  offer more advantage of not having tax on intrest amount earned on ….nd tds too….

          • Suresh says:

            Rajesh, I agree with you, that could be another option to become millionaire. Thanks. There are several things to be looked into. Regd PPF 1) Maximum is Rs 100,000 p.a.. 2) 15 years lock-in period 3) Liquidity issues. Regd RD, there are no such restrictions on the amount deposited.

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