Saving is a choice, not a task. We’ve been exposed to quite a few ways of saving money throughout our lives from the good old piggy bank to chit funds to bank accounts. However, people have this notion that Recurring Deposits provide you with a staggering amount of savings in equal portions. Reality however paints a different picture; recurring deposits constrain your savings in such a way that you save the exact same amount every month.
If you are one of many who has opted for Recurring Deposits because of the supposedly high rates of interest, the disadvantages outweigh the advantages unfortunately. You can’t even withdraw the money as and when you want to. Imagine you’re desperately in need of some money and you’ve exhausted all your funds except the part of your salary stashed away in an RD. The irony will be that you won’t even be able to access your own money. Strike One!
You won’t be earning the same monthly salary in the days to come. That appraisal that you’ll be waiting for year after year will arrive. A few months down your career path, your employer decides to hike your pay. Being financially responsible, you decide to put some extra money in your RD, only to find out that YOU CAN’T! Recurring deposits don’t allow flexible investments. Strike Two!
Truth be told, these “high” interest rates given by other banks are actually low. On average, the interest rate is around 6% which is lower than the interest you get on Fixed Deposits with most banks and even lower than the interest provided on savings by some banks. Strike Three!
Lost in thought? The 101 Account by Fincare Small Finance Bank is the best option available currently. Fincare 101 Digital Savings Account offers 6% for balance up to Rs. 1 lakh and 7% for Savings account balances above Rs. 1 lakh and is completely flexible. You can save as much as you wish when you get that salary hike at a higher interest rate than an RD. SEE FOR YOURSELF! https://www.fincarebank.com/fixed-deposit. No other bank offers such high interest rates in India! Online banking with Fincare 101 account is seamless and you can obtain maximum returns with minimum effort at your end.
The question is, how well do you understand your INVESTMENT PATTERN? We make it easy for you with a tabular representation-
|Features||Savings Account with Fincare 101 Account||Normal Recurring Deposit|
|Do I save for a goal?||Yes||No|
|Can I track my progress||Yes||No|
|Minimum deposit amount||Not Applicable||500|
|Next Deposit amount||Not Applicable||Multiples of 100|
|Next deposit date||Not Applicable||Fixed date every month|
|Penalty for not depositing any month||Not Applicable||Not Applicable|
|Number of deposits allowed every month||Not Applicable||One on a fixed date only|
|Duration||Not Applicable||6 months – 10 years|
|Interest rates*||Up to 7%||6.00% – 7.00%|