Become a millionaire in 20 years by saving Tk 13,803 per month

At one time, becoming a millionaire was considered a very significant achievement in the country. As a milestone of wealth, Tk one crore (10 million) was regarded as a high benchmark. In other words, anyone who owned Tk 10 million was considered wealthy.

For those who are hesitant about investing, one of the most reliable ways to become a millionaire is through savings.

Many banks now offer schemes that allow individuals to become millionaires simply by saving a fixed amount every month. One such bank is NCC Bank PLC.

By depositing a minimum of Tk 13,803 per month, it is possible to become a millionaire at the end of 20 years through this DPS (Deposit Pension Scheme).

Let us take a closer look at how you can save under this scheme. The available tenures are 2, 3, 4, 5, 10, 15 and 20 years. Government tax and duties will be deducted from the total amount.

Before saving under this scheme, it is important to review the monthly instalment and tenure. The interest rate is assumed to be 10 per cent per annum.

The longer the tenure, the lower the monthly instalment; conversely, the shorter the tenure, the higher the monthly instalment.

According to information available on NCC Bank’s website, if you wish to become a millionaire within two years, you will need to deposit Tk 376,436 per month. This is a large instalment, but it allows you to receive Tk 10 million in just two years.

For a three-year tenure, the monthly instalment is reduced to Tk 238,826. For four years, the instalment stands at Tk 170,333. For five years, it further decreases to Tk 129,485.

Now let us consider the longer tenures. To become a millionaire over 10 years, you need to deposit only Tk 49,602 per month.

For a 15-year tenure, the monthly instalment is Tk 24,881. For a 20-year tenure, the monthly instalment comes down to Tk 13,803.

To open an account under such a millionaire savings scheme, certain documents are required, along with some rules and features, such as:

1. Any Bangladeshi citizen may open this account.

2. The account can also be opened in the name of a minor. Until the minor reaches the age of 18, the account will be operated by a legal guardian.

3. All types of firms, institutions, organisations and companies approved in Bangladesh are eligible to open this account.

4. A customer may open one or more accounts, either individually or jointly.

5. Free internet banking and SMS services are provided.

6. Funds can be transferred from a current or savings account to the scheme account.

According to standard practices in the Bangladeshi banking sector, encashing an FDR before maturity results in some financial loss and the same applies here.

Based on information from NCC Bank’s website, no interest will be paid for deposits held for less than six months.

For deposits held for more than six months but less than one year, the interest rate applicable will be the three-month FDR rate for the first six months, with the savings account interest rate applied for the remaining period.

For deposits held for more than one year but less than two years, the six-month FDR rate will apply for the first year, and the savings account interest rate will apply for the remaining period.

For deposits held for more than two years but less than the full tenure of 3, 4, 5, 10, 15 or 20 years, the one year FDR rate will apply for each completed year, while the savings account interest rate will apply for the remaining period.

The documents required to open this account are generally the same as those needed for opening a regular bank account.

These include your photograph and National Identity Card (NID), the nominee’s photograph and NID and an introducer who already holds an account with the bank.

Signatures of all relevant parties are required in the designated sections of the form. You must also provide the name and address of a contact person whom the bank can reach in case of emergency.

Various banks in the market offer different types of savings schemes. Therefore, before saving, it is advisable to review the bank’s financial health and other relevant features. Otherwise, investing in a weak bank may place customers at risk.

Another important principle to bear in mind when saving, is to set aside savings from your income before spending.

In other words, do not save what remains after expenses; instead, decide in advance how much you will save and spend the remainder.

Alongside savings, some well-informed investment may also be considered. Even if the amount saved is small, it is important to save regularly.

If increasing income is not possible, reducing unnecessary expenses can help increase savings.

If this practice is followed consistently, you will eventually find that it is possible to build meaningful savings even within limited means.