123ArticleOnline Logo
Welcome to 123ArticleOnline.com!

ALL >> Business >> View Article

4 Ways To Control Spending And Start Saving With A Recurring Deposit

By Author: Neha Sharma
Total Articles: 108

A recurring deposit is a great financial tool that allows you to invest on a monthly basis and at the completion of the tenure; you will gain more return based on the interest rate you have selected. The recurring deposit is an ideal way to reduce your unnecessary spending and increase your savings.

Invest monthly

With a recurring deposit, you must invest religiously every month where the amount will be transferred from your bank account to the recurring account. Once you manage to invest on a monthly basis, you will develop a habit to save, while also reducing the amount of unnecessary expenditure on other items. With this investment, you will earn a substantial interest on the amount you have invested which you can either reinvest, or save for further use.

Can be started on a low amount

A recurring deposit can be opened for as small an amount as Rs.100. Most public banks will start with a small amount, whereas private banks will start with amounts higher than Rs.500. This is highly beneficial as you can start investing at a young age even though you earn a small amount. This works as beneficially as a fixed deposit account as you will be earning with the same interest as a fixed deposit.

Ideal for short term goals

If you have plans to buy a car, house or even invest in other options in the near future, this can be easily done with a recurring deposit. All you have to do is decide the amount you would like to invest every month, which does not have to be a big amount. Plan it in such a way that your tenure period matches with the execution of the short term goal. At the end of the tenure, you will receive the deposit with additional interest, which can be sufficient for a tablet, car down payment or a smart TV as well.

No tax deduction at the source

If you invest in fixed deposit account, there is a chance you will be subjected to the TDS, which is also known as the tax deduction at the source. In this case, the source is the bank which would deduct the tax from the interest you earn. At the end of the year, you would have to file a claim in order to claim this deducted amount. All this hassle can be avoided with a recurring deposit. Thus you need not run about wondering whether you will have to file claims or be prepared for loss of finance when you invest.


Author Bio :- Neha Sharma is a finance student who loves writing about Recurring Deposit and more. She is delighted to share her knowledge with the public and to those who are interested.

Total Views: 93Word Count: 454See All articles From Author

Business Articles

1. Advantages And Disadvantages Of Concrete Staining
Author: Ben Lager

2. What To Look For When Hiring An Ocean Freight Shipping Company
Author: William Santos

3. Top 4 Advantages Of Concrete Coating
Author: Ben Lager

4. Centrifugal Blower Manufacturer In India|centrifugal Blower Fan
Author: sara

5. Building A Modern Architecture Homes- Planning And Concept
Author: Leila Adam

6. Thorough Proofreading Finesses Documents, Raises The Organization’s Reputation
Author: NetZealous LLC, DBA TrainHR

7. Design And Build Contractor Singapore – Get The Best Services From Interior Renovation Contractor!
Author: James Han

8. Meishen–a Bright Star In Magnesium Oxide Industry
Author: hu Allen

9. Grow Customer Base And Market Presence With Pharmacist Email Lists For Your Business Campaign
Author: Adam Tyson

10. Adapt New Forms Of B2b Communication With Infection Control Directors Mailing List
Author: Andrew Rayel

11. Moby Wrap Baby Carrier
Author: babycarriersaustralia21

12. Care For Your Deck
Author: Blue Star Carpentry has been specializing in custom decks for over a decade. When you sit outside wi

13. How Does A Small B2b Company Increase The sales?
Author: Mohit Yadev

14. Latest Job Vacancies In India
Author: careersresults

15. Why Are Aap And Congress Supporters Opposing A Tax Reform Like The Gst? Are They Anti-nationals?
Author: Mohit Yadev

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: