FD vs SIP: Which Path Makes You a Crorepati Faster – ₹10 Lakh FD or ₹5,000 Monthly SIP?

By Siddhi Jain | Jul 18, 2025, 10:30 IST

If your goal is to build a corpus of ₹1 crore, you might be wondering: should you invest ₹10 lakh in a Fixed Deposit (FD) or start a ₹5,000 monthly SIP (Systematic Investment Plan)? Both are popular investment routes, but the journey, risk, and returns they offer differ significantly. Here's a detailed breakdown to help you decide which strategy is likely to make you a crorepati faster.

Understanding FD: Safe but Slow Growth

A Fixed Deposit is a traditional and secure investment option where you park a lump sum for a fixed period at a pre-decided interest rate. Currently, FDs offer an average interest rate of around 7% per annum. The best part about an FD is its stability – your money is safe, returns are guaranteed, and there’s no impact of market fluctuations.

Benefits of FD:

Guaranteed returns
No market-linked risk
Senior citizens get extra interest
Ideal for risk-averse investors

Drawbacks:

Lower returns (typically 6–7% per annum)
Returns often fail to beat inflation
Interest is taxable
Very slow long-term growth

How Long Will It Take to Turn ₹10 Lakh FD Into ₹1 Crore?

Assuming a constant 7% annual interest compounded annually and no withdrawal during the tenure, here’s the timeline:

Years	Maturity Amount
10	₹19.67 lakh
15	₹27.59 lakh
20	₹38.70 lakh
25	₹54.23 lakh
30	₹76.12 lakh
33.5	₹1 crore

So, it would take 33.5 years for your ₹10 lakh FD to grow to ₹1 crore — assuming stable rates and no taxation on interest. That’s a long wait!

SIP: Small Steps, Big Dreams

SIP allows you to invest a fixed amount regularly into mutual funds. Equity-based SIPs are linked to the stock market and, while volatile in the short term, have historically delivered 12% average annual returns over the long term.

Advantages of SIP:

Start with as low as ₹500
Power of compounding is higher due to monthly contributions
Flexible – can start, pause, or stop anytime
Lower long-term capital gains tax

Risks:

Returns are not guaranteed
Completely market-linked
Requires long-term discipline and patience

How Fast Can ₹5,000 Monthly SIP Grow to ₹1 Crore?

Assuming a 12% average annual return:

Duration	Total Invested	Corpus Value
20 years	₹12 lakh	₹34.88 lakh
25 years	₹15 lakh	₹67.28 lakh
29 years	₹17.4 lakh	₹1 crore
30 years	₹18 lakh	₹1.53 crore

So, a ₹5,000 SIP can make you a crorepati in 29 years. And if you continue for 33.5 years — same as the FD — the corpus could grow to over ₹2.7 crore, almost three times more than what FD would yield in the same period.

Moreover, if your SIP fetches 15% annual return (possible with high-performing equity funds), the ₹1 crore mark can be achieved in just 21 years and 4 months — that’s over 12 years earlier than FD.

FD vs SIP: Which is Right for You?

Factor	Fixed Deposit	SIP
Risk Level	Very Low	Moderate to High
Returns	6–7%	12–15% (equity-based)
Lock-in Period	Fixed	Flexible
Taxation	Interest Taxed	LTCG tax (after ₹1 lakh)
Suitable For	Capital safety	Long-term wealth building

If capital preservation and zero risk are your top priorities, FD might suit you. But building ₹1 crore will take over three decades — a very slow approach.

On the other hand, if you can tolerate market risks and stay invested long-term, SIP offers faster, more powerful returns with lower monthly investments.

Conclusion

A ₹10 lakh FD will take nearly 33.5 years to become ₹1 crore, while a ₹5,000 SIP can reach the same milestone in 29 years — or even earlier if markets perform well. SIP clearly has the edge when it comes to long-term wealth creation through disciplined investing.

Bottom Line: If you want to become a crorepati faster and can handle some market volatility, SIP is the better choice. But always consult a financial advisor before making investment decisions.

Disclaimer: This article is for informational purposes only and not financial advice. All investments are subject to market risk. Please consult a certified financial advisor before investing.