Looking for a Smart Way to Save Money? Invest in a Recurring Deposit

Posted on Thursday, December 3rd, 2020 | By IndusInd Bank

The Indian investors are always looking for investment options that are safe and can offer guaranteed returns. And, in this line of investment options, fixed deposits, the most popular choice, is closely followed by recurring deposits (RDs). However, for people having a lower risk appetite, RDs may prove to be a more prosperous and smart investment option. Want to know how? Well, let’s see what a recurring deposit is and how you can benefit from one.

What is a Recurring Deposit or RD?

Recurring deposits are a special class of term deposits that are well-suited for people with fixed incomes. They enable you to consistently save your money while earning returns on it at fixed interest rates. The smart investment tag of the RD is attributable to the flexibility of investment it offers. You have the freedom of investing low deposit amounts for tenure as short as 1 year!

What are the Features of an RD?

Apart from becoming financially sound by saving a part of your income every month, you also inculcate a habit of saving regularly through monthly instalments. Also, you can easily avail a loan against your recurring deposit by using it as the collateral.  Here are some other benefits that you can acquire from a recurring deposit.

1. Earn Returns on Your RD Investments: Being a low risk or nearly risk-free scheme, you can earn high-interest rates and save money simultaneously. Almost all banks offer respectable interest rates on RDs that may be compounded annually. We offer competitive interest rates for your investments which may go as high as 7%. Also, senior citizens can earn even better returns on their RD investments. So, you can yield the maximum benefit out of your income upon maturity with IndusInd Bank.
2. Invest for Short Tenures or for as Long as You Want: Grab on the opportunity to invest money for a short duration, depending on your financial investment goal. When you are banking with IndusInd, you can deposit the amount for up to 10 years. This translates into a steady investment of a set amount for ten years, given you will receive due returns, in conjunction with the principal amount upon maturity of the RD. Our minimum tenure of merely 12 months for RDs enables you to enjoy liquidity.
3. RDs are for everyone: Unlike market investments, a recurring deposit is particularly a favourable investment option for investors who cannot park their money in a high-risk situation. Besides, even if you cannot invest a huge chunk of your funds at once, you can go about investing a suitable amount on a monthly basis with RD.
   With IndusInd Bank, you can enjoy the flexibility of investing an amount starting from just Rs. 500 in an RD. This allows us to cater to a broad range of income groups.
4. RDs as Rainy Day Funds: If you are investing in a recurring deposit and can no longer fund the investment, you can withdraw your money. However, it must be noted that not all banks allow premature withdrawal. However, with IndusInd Bank’s Recurring Deposits, you can avail the facility of premature closure, in case of an unforeseen circumstance.
   A rainy day fund is money that is kept aside for financial emergencies. So, it is essential to offer liquidity of the funds, and we understand that and thus, provide you with the option of premature closure as well.

As mentioned, you can enjoy several benefits from arecurring deposit. Besides, applying for an RD is exceptionally effortless. Youcan visit an IndusInd Bank branch and fill out a form. Alternatively, you canvisit our website, or apply through our IndusNet portal or phone banking fromthe comfort of your home. Your money, your choice!

Smartly save your money through IndusInd Bank’s Recurring Deposit and yield attractive returns while your savings grow constructively. So, if you are not already investing your money in an RD, now is the time!

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.