Recurring Deposits – A Good Way To Save Your Money For Handsome Safe Returns.

Discussion in Bank Accounts started by luckycharm • Oct 17, 2016.

  1. luckycharm

    luckycharmActive Member

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    Have you ever had a recurring deposit in your bank? I think it is a very good way to save some money for a safe return at the end. This is ideal for salaried people as you need to deposit a fixed amount every month in your account.

    As the name denotes you will be paid interest on the accumulated capital+interest every month. But you are allowed to withdraw it only after the specified period or else you may not get any interest on your capital and in some cases it would attract a penalty too. It varies from banks to banks.

    However, you will end up getting a good sum of money after the tenure of deposit. Usually its period varies from 6 months of 10 years and you need to pay the fixed amount every month without fail. The rate of interest depends on the tenure you choose while starting your recurring deposit.
     
  2. Ray1

    Ray1Well-Known Member

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    Yes my wife is a regular saver by recurring method. She has at least 20 deposits in one year to 10 years schemes ranging from monthly to quarterly deposits. It is sometimes hard to pay the installments but she manages them with the funds which comes on maturity.
     
  3. biege

    biegeActive Member

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    I guess you are pertaining to compounding interest. It's pretty good if you no longer want to worry about other stuff like monitoring your savings and stuff. Me personally, I already have stopped saving money on banks, I mostly use them on different investment vehicles that offers better compounding that of savings.