Smart Habits-How to inculcate savings habit!

Do you often find yourself wondering were all your money is spent and you don’t have enough savings in your bank account?

Don’t worry you are not alone!

In this era were impulsiveness rule our mind, making calculated long-term decisions often take a back seat. Especially when it comes to saving money. 

Though in today’s fast paced world, were all the information is available at our fingertips, most of us get lost in the ocean of information available. We think we are in control but reality strikes at some point or another, and unfortunately for many it’s too late.

This can be controlled by contributing/investing small sum’s, which won’t hamper you significantly, rather will be helpful. There are numerous ways by which you can save efficiently. Choose a risk free and monthly payment investment options to start with for Example, recurring Deposit.

Recurring deposits are the ideal solution to get into the habit of savings, along with earning decent, risk-free and guaranteed returns. A recurring deposit is an investment which promises of the safety of principal and adequate return

Let’s understand further on the benefits of taking the Recurring deposit route.

Recurring deposit (RD) is a type of term deposit offered by banks through which a fixed sum can be deposited periodically. This is one of the exceptionally popular and risk-free investment opportunities for investors.

Every major bank in the country offers an alternative to open a recurring deposit account with different tenure options and providing people with the opportunity to pick a term according to their prerequisites. Attractive interest rates help investors to earn good interest on maturity.

Why it’s Smart to invest in recurring deposits!

  • Inculcates a savings habit

As rightly said by Warren Buffett – “Do not save what is left after spending; instead spend what is left after saving” Recurring deposits can generally help to inculcate a regular habit of savings among the new investors with low-risk appetite. The Interest earned is fixed. Investors can decide a premium that they want to invest and choose the tenure accordingly. This not only helps to save money but also develops a habit of saving it.

“Savings, remember, is the prerequisite of investment.” 

  • Simple documentation

The documentation required for opening a recurring deposit account is quite simple to arrange. Most banks offer an online platform to the investor’s book recurring deposit with their linked accounts. Generally, when the savings account is opened, no further documentation is required. This is the least complex and most problem-free approach to save money and earn guaranteed interest.

  • Safe and guaranteed return option

One of the attractive features is that interest rate, when decided, does not change during the tenure of the investment. On maturity, the investor will get a lump sum amount, which incorporates the monthly instalments and the interest earned on the equivalent.

  • Premature withdrawal option

The Interest earned is fixed and banks by and large don’t permit untimely and mid-term withdrawals. In any case, if the investor demands, the bank may enable one to close the account before maturity, with a penalty charge.

Hence, while investing in a recurring deposit account, select a bank which offers a high rate of interest and charges a low penalty on premature withdrawal. The RD interest rate in India can fluctuate from bank to bank and relies on the kind of scheme chosen, the tenure of deposit, and the monthly deposit amount. Also, some banks may offer high-interest rates for senior citizens and women.

Fincare Small Finance Bank, always encourages innovative ideas to save money and to start with Recurring Deposit is the ideal alterative for Individuals who do not have a sum of money to invest in a fixed deposit but can afford small portion of investment amount from income every month can opt for a recurring deposit instead of a fixed deposit.So, get ready to stay ahead of the curve and save smartly!

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