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


  • Kashyap

    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 ?

  • rajeev

    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.

  • Anita

    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

      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.

  • jose

    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?


  • Prem

    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.




    • 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.

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