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?
- 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.
- 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.
When you want to become Crorepathi? See how much you need to save and invest in bank recurring deposit earning 8.5%.
- 10 years – You need to save Rs 53,500 to become Crorepathi
- 15 years – You need to save Rs 28,000 to become Crorepathi
- 20 years – You need to save Rs 16,000 to become Crorepathi
- 25 years – You need to save Rs.9,800 to become Crorepathi
- 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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I am 26 years old and just started to research about investing for good returns in the future. Your articles are really informative. Thanks a lot for posting such useful information.
I have an account in ICICI and came across a Flexible recurring deposit plan.
I think it is the same as the Variable Recurring deposit plan you mentioned in another article.
The plan looks good and I am interested to invest in it.
However, I did not understand a line mentioned in their benefits section.
Tax Free: No Tax Deducted at Source (TDS) either on interest or on principal
Please let me know if you have any advice regarding this plan.
Generally for all recurring deposits (RD), banks would not deduct TDS. The same applies here in this. However you need to pay income tax based on your income tax slab even though banks are not deducting tax
Hi this’s jay..,i want to invest 10000rs per month ,how much i cn get after 5years…
i am getting 16000 as interest from fd of 3 years….ky muje iske liye tax dena hoga ky..
Priyanka, you need to add this into your yearly taxable income and pay income tax based on your slab.
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.
Arun, for interest on FD you need to declare every year in your tax returns and pay tax based on your tax slab