I want to make Rs. 1 crore by investing an equal monthly amount for 25 years (no equity investment)
Please suggest which bank offers the best rates on recurring deposit like this.
Thanks
2 Answers
Rs 10,000/- per month @ 9.5% per annum for 25 years will fetch you 1,15,05,145/-
Most PSU banks are giving 9.5% on RDs.
Although RD may give you 9.5% ROI, interest amount is taxable, so end return may be less than even 7%. So if you want to make 1 crore in 25 years in RD, you will have to invest more than 10000 per month (around 12350).
Its not a good idea to earn only 7% ROI as it may not even beat inflation.
I would advise you to consider adding some portion to equity as 25 years is a long term and equity will perform better than any other investment.
Consider investing through SIP in balanced mutual funds like Reliance Regular Savings Balanced, HDFC prudence, DSPBR Balanced, HDFC Balanced or Birla Sunlife 95.
You may also consider investing in New pension scheme (NPS).
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