Monthly 1 lakh using Bank RD 22000 per month- Possible ?

[timepass]

I came across this poster of Central Bank of India and it got me thinking.

Now, if I invest in all the 10 years schemes, it costs Rs. 22000 per month for 1 year, and then starts returning 1 lakh per month from 13th month onwards.

Another advantage is "No TDS" !!

How does it sound ?

https://www.centralbankofindia.co.in/English/rdc_Cent_Lakhpati.aspx

Is there a mistake in my calculation ?? It sounds way too attractive.

 

[wisp]

I came across this poster of Central Bank of India and it got me thinking.

Now, if I invest in all the 10 years schemes, it costs Rs. 22000 per month for 1 year, and then starts returning 1 lakh per month from 13th month onwards.

Another advantage is "No TDS" !!

How does it sound ?

https://www.centralbankofindia.co.in/English/rdc_Cent_Lakhpati.aspx

Is there a mistake in my calculation ?? It sounds way too attractive.

its maturity amount at the end of the term, not monthly 1 lakh!

 

[timepass]

its maturity amount at the end of the term, not monthly 1 lakh!

Of course it's maturity amount, but I am looking at it from a sort of pension plan.

 

[wisp]

Of course it's maturity amount, but I am looking at it from a sort of pension plan.

Am I missing something completely

At the end of the 10 year period you will get 10 lakhs or multiples thereof , how can you get monthly 1 lakh?

 

[Smart_trade]

its maturity amount at the end of the term, not monthly 1 lakh!

1) Your calculation is wrong.For 2 yr,3yr,4yr ......you have to invest that amount every year and continue for 10 years.

2) So in 10 years you will get 10 Lakhs. 1 L at the end of each year.Interest accrued on RD is taxable in your hands in each year.

3) They are compounding with 6.5 % interest pa which is pathetically low.

IF the investment span is 10 years ,best is invest in any Multicap fund which will give > 15 % pa which will comfortably beat inflation and create a retirement fund for you. If you want to build retirement fund in 10 years,you will have to invest atleast 20-25 K per month for 10 years which will give total fund of over 55-60 Lakhs after 10 years in mutual fund.That could just be barely sufficient to meet expenses after 10 years from its interest.Dont consider bank RD...you have to take risk with mutual funds.

Mistake in calculation is in your plan, you are getting annual income of Rs 1 L it is not a monthly income.

Smart_trade

 

[timepass]

See that 1 lakh is not at the end of 10 years. The whole scheme expires at the end of 10 years.

I am looking at it this way,

First year I pay 22000 per month
Second year I pay 14000 per month + 1000 tax (TDS), and I receive 1 lakh per month.
Third year I pay 10000 per month + 1000 tax, and I receive 1 lakh per month.
..
..
Tenth year I pay 600 per month + 1000 tax, and I receive 1 lakh per month.

So for a basic investment of 22000 per month in the first year, it starts earning me 85000 from the 13th Month. That 85000 pm is pretty good income or the corpus for funding some other investment scheme for the next 9 years.

In short, 22000 becomes 85000 in 13 months.

 

[timepass]

See that 1 lakh is not at the end of 10 years. The whole scheme expires at the end of 10 years.

I am looking at it this way,

First year I pay 22000 per month
Second year I pay 14000 per month + 1000 tax (TDS), and I receive 1 lakh per month.
Third year I pay 10000 per month + 1000 tax, and I receive 1 lakh per month.
..
..
Tenth year I pay 600 per month + 1000 tax, and I receive 1 lakh per month.

So for a basic investment of 22000 per month in the first year, it starts earning me 85000 from the 13th Month. That 85000 pm is pretty good income or the corpus for funding some other investment scheme for the next 9 years.

In short, 22000 becomes 85000 in 13 months.

 

[Tuna]

And do factor in the rate cut. All developed nations have rates close to 0 or 2% on saving (borrowing is also cheap). If Inflation goes down and makes way for a further rate cut, it will decrease the interest we get on savings as well (little faster than the rate cut on borrowing, as banks want to make the business of rate cut more profitable for them).

All I wanted to say, 10 years extrapolation of RD saving based on current rate - will not happen. Already planned this out and found the possible failure points.

You want to make it Big, if have to take the Risk.

 

[Smart_trade]

See that 1 lakh is not at the end of 10 years. The whole scheme expires at the end of 10 years.

I am looking at it this way,

First year I pay 22000 per month
Second year I pay 14000 per month + 1000 tax (TDS), and I receive 1 lakh per month.
Third year I pay 10000 per month + 1000 tax, and I receive 1 lakh per month.
..
..
Tenth year I pay 600 per month + 1000 tax, and I receive 1 lakh per month.

So for a basic investment of 22000 per month in the first year, it starts earning me 85000 from the 13th Month. That 85000 pm is pretty good income or the corpus for funding some other investment scheme for the next 9 years.

In short, 22000 becomes 85000 in 13 months.

In second year you pay 14000 per month +Rs 1000 tax then you get Rs 1 lakh at end of 2nd year which the maturity amount of 2 yr deposit..how you get 1lakh per month ?

..........same for subsequent years....

ST

 

[msa5678]

Assuming that u start investing from June 2017. You will be receiving your First 1 lakh rupees in June 2018 and your second 1 lakh will come in June 2019 ...and so on. It will be 1 lakh per year and not 1 lakh per month.

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