Auto Transfer Of Money For Saving.

Discussion in Personal Finance started by luckycharm • Feb 19, 2017.

  1. luckycharm

    luckycharmActive Member

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    I opened a recurring deposit with a bank a few months ago but the issue I faced was that I was not punctual in depositing the specified amount every month before deadline. Then I came to know that I can authorize the bank to debit the money directly from my bank account. Now once my salary is credited to my saving account a particular amount will be automatically moved to my RD account. I think that is really helpful for a person like me. It also acts as a check on my unnecessary spending habits and at the same time my money is growing as RD.

    Have you ever activated auto-transfer towards saving money?
     
  2. Jamille

    JamilleActive Member

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    Authorizing the bank to transfer a portion of your salary each pay day to another account is a good idea to enforce savings. This way, you never get to see the money in the first place so you're not likely to plan how you'll spend it. It then becomes part of your savings. I haven't done this though because I wanted to keep my savings off the bank that the company uses as its payroll processor. The bank offers relatively lower interest than other banks with branches in the same business district. Hence, I've decided to make a fixed deposit to a bank of my choice which is located just beside the bank branch that our company uses for payroll.
     
  3. tonyb

    tonybActive Member

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    It's a very wise move to mandate your bank to automatically transfer some amount of money from your salary account to a savings account. This will help you discipline yourself to ensuring you regularly service your savings account when due. Somehow you don't feel it that much paying to the other account since you aren't physically seeing the money. That said, this is a cool way to ensuring regular money to elderly parents if you live in different city.
     
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