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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Suresh KP


  • RAM

    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

    • 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.

  • raghu

    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)

  • Thomas

    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?



    • 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.

  • Dr. Suman K Kasturi

    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

    • 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.

  • karthick


    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.

    • 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.

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