Benefits of having a Recurring Deposit Account. Here is how you can save more money

 

Life of every middle-class family man or an average incomed person’s family running is very difficult in the present times of increasing prices and the increased standard of living of the people. So seeing to the present increased cost of living of the people and also the ongoing lockdown and crisis, every person is forced to plan to save and invest wisely. Many many options and schemes are suiting your income level and saving capacity but in this particular article, no scheme is been explained but a very good idea of investing your hard-earned money wisely and also a safe place to invest in.

Here’s how you can earn Rs 1,07,100 by depositing Rs 1,450 every month. This is not any kind of a scheme but for investing in a Recurring Deposit which has a guarantee of your money. You can open a Recurring Deposit or RD account in any of the bank or post offices. 

In the present covid situation and imposition of lockdown, each and every person of the country has been suffered in one or the other way. A few who had to get admitted to the hospital had to face a lack of money issues etc. So we get to learn from this that a person has to not only just invest in anything but has to invest and save it wisely so that their hard-earned money won’t go to waste and comes to use at times of need. Therefore we are not suggesting any kind of a scheme but a suggestion on how and where to invest your money properly.

So here all you need to do take equal amounts of money every month from your salary deducting all your expenses and other crucial responsibilities and save it without fail so that at the end of a particular period, you get a large amount of money in your hands. 

A recurring deposit is a special kind of term deposit offered by banks which helps people with regular incomes to deposit a fixed amount every month into their recurring deposit account and earn interest at the rate applicable to fixed deposits.

All you need is discipline in investing every month. On investing in discipline and by having a target then Recurring Deposit will be too profitable to you. For example: Assuming that you have invested in Recurring Deposit (RD) with an interest rate of 8% and you have opened this account for the time period of 5 years. Let’s assume you have decided to invest Rs 1,450 every month. So after a period of 5 years, you would have deposited Rs 1,07,100 in full. To be kept in mind, the most important point is that you have to keep investing in it regularly without missing even a single month not a single penny less. One can open a Recurring Deposit account in any bank or post office. 

What are the benefits of having/opening a Recurring Deposit Account?

The benefits of saving in a Recurring Deposit account is as follows:

1. A good way to get a lump sum by depositing equal small amounts of money over a period of time. 
2. Interest on the principal amount is added to the principal.
3. A fixed amount can be deposited by you on the decided amount every month.
4. A recurring Deposit helps you save every month.
5. Without any risk get full returns.
6. You can decide the total period of investing, it may be for 6 months to 10 years. 

So what are you waiting for? Quickly approach the nearest bank or the online portal of those banks in which you hold the account as there is an option to open an RD account online.