It is time for your friends and family to catch up, celebrate, and reconnect. It's time for a gift exchange. If you find yourself with a little extra money earned as gifts, why not use it rather than having it in your drawer lying around? Recurring Deposit (RD) is a simple, convenient, and efficient way to multiply your savings and help you meet your financial goals with high efficiency.
How does it work?
You will spend a fixed sum of money for a fixed tenure when you open an RD. You deposit a fixed amount into your RD Account on a specific date per month. The best part is, with an investment as low as just Rs 500 per month, you can begin an RD with the use of a banking app.
Why Recurring Deposits?
With ease, reach your short-term financial objectives
One of an RD's essential advantages is that it is a secure investment, meaning it is risk-free for your funds. If you are planning for short-term financial goals, this is a huge bonus.
Short-term targets have a short period of one to three years, and with your returns, you do not afford to take any chances. As its performance is not related to market conditions, RDs do not bear any risks and give you liquidity with assured RD interest rates.
Here are a few short-term objectives that can be easily accomplished with an investment in RD:
- Save for your new house for your down payment
- Expenses for marriage
- Refurbishing or renovating your house
- Save for a trip abroad and more.
Attain ultra-short-term goals
Investors often spend all their time and resources concentrating on big-ticket goals such as retirement, buying a home, schooling for children, and more, but they forget to accomplish their ultra-short-term goals that will soon come true.
There are objectives that you want to accomplish in the next six months to a year. 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
- Pay the fees for your child in a new school
- Gifting your parents, a weekend trip and more
These are goals that, without preparation, people think they can 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 every month for a period with recurring deposit interest rates, thereby helping you stay invested at all times, regardless of your varying monthly expenses.
Your returns rise over time, and your assets help you fulfill all your short-term financial ambitions and aspirations.