Being an employee, earning a monthly salary might not be sufficient nowadays to look after a family, which is why you need a saving apart from your salary.In case you encounter a sudden medical or financial emergency you will need to quickly respond and get money; if you have a saving in your bank it will be more of a relief than asking someone. Hence a saving at any point of time is vital if you are the lone bread winner of your family.
Why you need to have a recurring deposit?
Recurring deposit is a financial investment scheme offered by various financial institutions like banks where you as an investor can deposit your fixed share of the money every month into the bank by opening an account for a specific time period and gain a good interest rate and lump sum returns upon maturity. While schemes like these are available in the banks, at times we are not aware of the same and at others we ignore the same thinking that it is not beneficial for us.
Develop a saving habit
Opening a recurring deposit account in the bank help to instil in people the good habit of saving a few extra rupees. Depositing a minimum balance of just a few thousands every month, will not give you any tension but that in return will give you monetary benefits which you cannot even fathom. These financial schemes help to encourage the public to save more and make themselves independent without relying on others. Investing in recurring deposit is a good habit as you gain a higher rate of interest compared to other schemes like fixed deposit and it is also available for short as well as long periods
Example:
If you have thought of buying a new car or a new television set or bike, you can start saving your money months ahead by opening a recurring deposit account. Depositing smaller quantities of money every month will gain you good returns once your tenure of 6 months or 1 year is finished. This way you will make your own money to buy your new car, bike or television.
And if you have a sudden financial emergency where you need to avail a loan, having a recurring deposit account in the bank will make it easier for you get a loan equivalent or upto 80% or 90% the original value of the deposit amount.Plan ahead and start investing early, you will be amazed at the results and how beneficial recurring deposit will be for you, taking off the tension from your life and putting you at ease.
