If you want to create a lot of wealth, but do not have a lump sum amount to invest in bank fixed deposits, then you should try out the bank recurring deposits. A bank RD allows you to pay a monthly amount and keep increasing your principal amount, which will keep earning greater and greater interest on your money. This is a very safe way to make money, unlike stock markets where your earnings can yo-yo dramatically as markets keep getting hit by extreme volatility as happened last Monday when they crashed. Having said that, the markets have been returning huge amounts of money to investors, sometimes in double digits. Therefore, if you are young, you should have a portion of your money there too. And now, we return to to the bank RD. To show you how well wealth can be built up, we take a look at the Bank of Baroda RD calculator.
We take the example of a fictitious investor who has some Rs 20000 to invest every month. He picks a tenure of 5 years with an interest rate of 6.5%. The investor must make sure that he keeps depositing this amount without fail, month after month and year after year. Not doing so will invite penalties and losses.
When the number crunching is done by the Bank of Baroda RD calculator, it will show that the Rs 20000 investment has turned into a massive Rs 14,19,816! In effect, the investor has earned a huge interest of Rs 2,19,816! This is for the general public. However, senior citizens will get an even higher BoB interest rate.
With everything the same, except the classificaion of the investor as a senior citizen, the returns are even more awesome. The most important aspect is the the Bank of Baroda RD interest rate, which is a whopping 7.15%! On a Rs 20000 monthly investment for 5 years, the amount he receives in his bank account on BoB RD maturity is Rs 14,44,366! The interest earned is a huge 2,44,366. Clearly, it is advantageous to be a senior citizen.
Note: These are estimated sums and the actual amounts will be provided by the bank in their passbooks.
Bank of Baroda RD calculator: A massive Bank of Baroda interest rate, and a regular contribution habit, can turn your Rs 20000 into a massive Rs 14 lakh. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
