It is time for your friends and family to catch up, celebrate and reconnect. It is time for a gift exchange. If you find yourself with some extra money earned as gifts, why not save it than have it in your drawer lying around? Recurring Deposit is a simple, convenient, and efficient way to multiply your savings and help meet your financial goals with high efficiency.
How does it work?
You spend a fixed sum for a fixed tenure when you open an RD Account. You deposit a fixed amount into them on a specific date monthly. The best part is that with an investment as low as Rs. 500 monthly, you start operating RDs either through Net Banking or the Banking app.
Why Recurring Deposits?
Achieve short-term goals
The best part about a Recurring Deposit Account is that it is a secure investment and is risk-free for your funds. It is a huge bonus if you plan for short-term financial goals. Unlike other investment products that perform well in the long run, like Mutual Funds and Stock Market, RDs are the best way to achieve your short-term financial goals.
Short targets have a short period ranging from a year to three years, and with your returns, you cannot afford to take any chances. As its performance is unrelated to market conditions, RDs do not bear any risks and provide liquidity with assured RD interest rates. You can also check Fixed Deposits for Fixed Deposit interest rates to help you plan better.
Here are a few short-term objectives that you can easily accomplish with RD online:
- Save for new house down payment
- Wedding expenses
- Refurbishing or renovating your house
- Save for an international trip.
Attain ultra-short-term goals
Investors often spend all their time and resources focusing on big-ticket goals such as retirement, children education, and more, but they miss out on ultra-short-term goals that are possible within a few months. Some cases of ultra-short-term priorities include:
- Save money to purchase the newest smartphone on the market
- Buying your partner a unique wedding present
- Gifting your parents a trip
These are goals that, without preparation, is possible to accomplish. But, more often, these ambitions take a backseat because of a shortage of funds. As financial experts say, consistency is the key to successful investment. You save a fixed amount monthly for a period with RD interest rates, thereby helping you stay always invested, regardless of your varying monthly expenses. With the RD calculator, you can check how much you need to invest monthly.
Your returns rise over time, and your assets help you fulfil all your short-term financial ambitions and aspirations.
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