If you spend too much every month and because of this you are not able to plan big savings, you do not have anything to regret. But if you feel that you should save a large amount every month and there is no benefit in saving Rs 500 or 1000 every month then do change your attitude, because you can start saving just by Rs 10.
If you are working and there are many responsibilities to handle, then it is possible that you do not set aside a large amount of money to save for the future. For this, if you deposit money in a house piggy bank by saving a little bit from the daily expenses, you can transform your small savings into big savings after some time.
After this, the Post Office Recurring Deposit Scheme can prove to be beneficial for you, which is very helpful in maximising small savings. Under this scheme, you need to deposit money at every interval.
More Profitable Than The Bank's Recording Deposit
Post Office Recurring Deposits, i.e. RD, now earn 7.3% of annual interest. In comparison, SBI (6.80 - 6.85 per cent), Kotak Bank (6.50 - 7.30 per cent), Bank of Baroda (5.75 - 6.85 per cent), IDBI Bank (6.00 - 7.05 per cent) are paying interest. So, the Post Office’s Recurring Deposit is more beneficial than a banks' RD. At the same time, if you keep these funds in the bank's savings account, most banks give interest only up to 4%.
Open Your Account With Just Rs 10!
Opening a Post Office RD needs only Rs 10. You can collect as many as Rs 10 per month and in multiples of more than Rs 5. With this small savings, you won’t even have any financial pressure and you will be able to collect a large amount of money in a small amount each month easily.
Savings Like A Piggy Bank
The way women set aside some money for daily savings in a wallet or piggy bank, in the same way you can save from this scheme and get interest on it.
How Beneficial Are These Schemes?
If you save Rs 100 every day by saving some money from your expenses, in the Post Office Recurring Deposit scheme, your monthly savings will be Rs 3000. With this, a fund of about Rs 2.25 lakh will be ready in 5 years. In such a way, you get an additional benefit of about Rs 43,000 on the total deposits in 5 years. If you deposit Rs 3000 every month, you get benefitted in this way (the amount of total value can vary slightly depending on the interest rate).
How To Open An Account?
You can open an RD account by depositing a small amount of Rs Rs 10 in any nearby post office. The good thing is that you can open one or more accounts. This account can also be opened under your kids’ name. Children 10 years of age or older can operate it themselves. In this, two people can also open joint accounts.
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Benefits Of The RD Account
- The advantage in the recurring deposit is on the basis of the investment amount. Investment of a fixed amount can be done every month. From the time of depositing the amount under the lock-in feature of RD, the interest rate remains the same and the interest rate on the deposit gets locked in the beginning. So it is beneficial to deposit money in an RD when the interest rate is low.
- Saving management is easy with a recurring deposit, and there is less hassle in it rather than a fixed deposit.
- The money can be collected for small financial goals in RD.
- You can make an RD for up to 10 years.
If women pay attention to saving regularly and keep enough amount of money for all kinds of needs then definitely their financial condition can be better. Having a strong financial position this way, women can feel more empowered and better prepared to face the ups and downs of life.
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