Do you keep wondering how you can save fixed small amount every month with out bothering much about any market risks?
Then Recurring Deposit(RD) is one of the better options available for you.RD allows you to save amount every month with defined interest rate that is agreed during the opening of the account.
Most of us doesn't bother much about 500/1000/2000 or even more rupees depending on the way we live.We don't even bother if that money is lying in our account or in our pocket with no spend plan.That money will somehow get spent by end of the month though no way it was planned.
If you somehow make that amount go into an RD every month then you can definitely make a good amount of sum depending on the period selected for RD.
These days most of the banks allow online transactions and if you have an online account,RD can very well be opened from your home it self.
That too if you give the bank standard instruction to deduct money every month,then you no need to worry about adding money to RD account on your own every month.
If you are earning around 25k per month and if around 2000 rupees per month are booked for RD,then you don't even feel like some amount is getting deducted every month from your account.
After few months ,you will get into a mood like the salary you get is only 23k and not 25k. The remaining 2000 will get saved every month with no hassle and will in turn create a lump sum for you in the long run.
This even helps you in financial emergency as you can very well close the account with minimal pre-closure charges.Instead of closing the account completely,we can go for another approach where at least we can continue doing RD.
Instead of opening one RD account with 2000 rupees per month, you can either
create two RD accounts with 1000 rupees per account per month or
create four RD accounts with 500 rupees per account per month.
With this approach,when ever any financial emergency, you can close one or two accounts depending on the required money and can keep continuing other RD accounts.This way you can meet your financial emergencies and can keep saving for future.You can even minimize pre closure penalty charges with this way.
Will discuss about how regular savings in RD in the long run can become a gold mine in my next post.
HAPPY SAVING !!!!!!
Then Recurring Deposit(RD) is one of the better options available for you.RD allows you to save amount every month with defined interest rate that is agreed during the opening of the account.
Most of us doesn't bother much about 500/1000/2000 or even more rupees depending on the way we live.We don't even bother if that money is lying in our account or in our pocket with no spend plan.That money will somehow get spent by end of the month though no way it was planned.
If you somehow make that amount go into an RD every month then you can definitely make a good amount of sum depending on the period selected for RD.
These days most of the banks allow online transactions and if you have an online account,RD can very well be opened from your home it self.
That too if you give the bank standard instruction to deduct money every month,then you no need to worry about adding money to RD account on your own every month.
If you are earning around 25k per month and if around 2000 rupees per month are booked for RD,then you don't even feel like some amount is getting deducted every month from your account.
After few months ,you will get into a mood like the salary you get is only 23k and not 25k. The remaining 2000 will get saved every month with no hassle and will in turn create a lump sum for you in the long run.
What if some emergency happens:
This even helps you in financial emergency as you can very well close the account with minimal pre-closure charges.Instead of closing the account completely,we can go for another approach where at least we can continue doing RD.
Instead of opening one RD account with 2000 rupees per month, you can either
create two RD accounts with 1000 rupees per account per month or
create four RD accounts with 500 rupees per account per month.
With this approach,when ever any financial emergency, you can close one or two accounts depending on the required money and can keep continuing other RD accounts.This way you can meet your financial emergencies and can keep saving for future.You can even minimize pre closure penalty charges with this way.
Will discuss about how regular savings in RD in the long run can become a gold mine in my next post.
HAPPY SAVING !!!!!!
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