As an employed individual, there is
more to earning an income. You will need to invest your funds in the right
account that will offer you plenty of benefits. But with so many options
available, how do you know which is the right choice?
The recurring deposit is one such
choice. This deposit is a termed deposit, offers you the opportunity to invest
a fixed amount on a monthly basis. Depending on your preference, you can invest
a small amount which is of a minimum value. Alternatively, you can invest a
large amount. Through this investment, you will earn a fixed return on
investment at the end of the maturity period. By
using the recurring deposit calculator you will be able to calculate the amount
you can invest or even the amount you would ideally want in return.
This type of termed deposit, is the
best choice for those who are earning and wish to save a small amount
regularly. This will help you grow your investment on a slow and steady basis,
especially if you have a sufficiently long tenure. However, in order to make
the most of this termed deposit, you will need to understand the features of
the account.
Features
of the recurring deposit account
The main features of the recurring
deposit is given as below:
- Like the other termed deposits, the recurring deposit schemes are designed to provide you with returns on a fixed investment.
- The minimum amount that can be deposited for this termed deposit varies from institute to institute. it can also amount to Rs. 100
- The minimum tenure of a deposit can vary from bank to bank. It can start of at 6 months and last for 10 years.
- The rate of interest is equal to that which is offered in a fixed deposit. This makes it one of the investment schemes that offers a high return on investment.
- You cannot withdraw any premature or mid – term funds. If there is any requirement to do so, there is a penalty you will need to pay.
- You can even use the funds in this account as collateral for a loan. Through this process, you can get at most 85% of the deposit as a loan amount.
- Standing instructions can be given to the investing bank so that the recurring deposit can be maintained by the funds getting debited from the required account.
How to use
this account to invest your income and savings?
Plan your income in such a manner
wherein you can set aside a small amount to invest. By using the recurring
deposit calculator, you can calculate the ideal amount that can be invested in
this account. You can even adjust the rates and tenure in such a manner that
will suit your financial needs. You can even plan your tenure that will allow
you to invest your funds for a particular financial requirement.
