Recurring Deposits: Bank on it for higher returns on your investment.

madathil mhanian By madathil mhanian, 5th Oct 2014 | Follow this author | RSS Feed | Short URL http://nut.bz/r24oxqz5/
Posted in Wikinut>Money>Investing

A convenient and simple way to increase your returns on investments. Open an Recurring Deposit for the amount and period you wish to invest in.

Recurring Deposits: Bank on it for higher returns on your investment.

What are the ways to increase my savings? If you put this question to people seven out of ten will reply you to invest in shares market, two will tell you to buy gold and one will tell you to invest in mutual funds. But none of them will tell you about the amount you require to start with and the technical support you need to do the same in first and third way. The security of the second also is a big concern. One avenue, through which you can increase your savings, within your own mite, is recurring deposits; yeah you heard me right, recurring deposits. Let us bank on the various benefits you will get when you opt to save through a recurring deposit.
1 No tech-support required: Unlike the share market or the mutual fund path, when you choose to invest through recurring deposits, you don’t need any technical support like Personal computer, laptop, high-tech mobile phone and the inevitable internet connection. All that you require is some leg work to walk into a nearest bank and fill up a form, support it the necessary documents, the amount for your initial deposit, Voila, it is done. If you already operate a savings bank (checking account) account then even the supporting documents are not necessary.
2 Start with what you can: The recurring deposit does not require you to start with a hefty amount unlike a share trading or mutual fund. You can begin with as low as five hundred per month. Then each month you can deposit, any working day from the first to last working day of that month, the same amount for the period you chose for the recurring deposit. Most people pitch-in for a two year (twenty four months) period so that there is a sizable amount accumulated in that account. You can even give a standing instruction to your Savings Bank account from which the money will be transferred to your recurring deposit account; saves time to visit the bank for this purpose.
3 Higher interest rate: you will get a higher interest rate for your deposit than the savings bank account. Normally this amounts to eight to nine percent as compared to almost half that percentage when compared to your savings account. This may differ slightly from bank to bank depending upon their marketing strategy. Find out with a little leg work which bank gives you the best return for your money.
4 Loan against your Deposit: depending upon the amount you have in your recurring deposit account, you can even avail a loan from it when you are in troubled waters. You can repay the loan with interest for the period till you deposited the amount back to the account.
Savings are the money that we set aside for the future use or to take out from the same when we need some money for additional, unforeseen expenses or to purchase something that we are longing for. Recurring deposits are the ideal way to increase your savings in small amounts, month after the other for a prescribed period, that too with some additional interest. Bank on it for higher returns for your money.

Tags

Higher Returns, Loan, Recurring Deposit, Regular Payments, Savings Bank, Share Market, Tenure

Meet the author

author avatar madathil mhanian
from Coimbatore, worked as a Zonal Sales Manager for a Pharma company. At present earns as a Freelance Trainer for Pharma companies.

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