Investment Ideas in Recurring Deposit for Festive Season
December 12, 2018
It’s time to catch up, celebrate and bond with your friends and family. It’s time to exchange gifts. If you find yourself having a little extra amount of money, received as gifts, why not put it to better use, than having it lying around in your drawer? Recurring Deposit (RD) – An easy, convenient and efficient way to multiply your savings and highly effective in helping you achieve your financial goals.
How does it work?
When you open an RD, you invest a fixed amount of money, for a fixed tenure. Every month, on a particular date, you deposit the fixed sum in your RD Account. The best part is, you can start an RD with an investment as low as just Rs 500 per month.
Why Recurring Deposits?
- Achieve your short-term financial goals with ease
One of the most significant benefits of an RD is that it is a safe investment, meaning your funds are risk-free. This is a massive advantage if you are saving for short-term financial goals. Unlike other investment products like mutual funds and equities, that work better in the long run, RDs are an excellent way to meet your short-term financial goals.
Short-term goals have a short time horizon of 1 to 3 years, and you cannot afford to take any risks with your returns. RDs do not carry any risks and offer you liquidity with guaranteed returns, as its performance is not linked with market conditions.
Here are a few short-term goals that are easily achievable with an RD investment:
- Saving for the down payment of your new home
- Marriage expenses
- Renovating or refurbishing your home
- Saving for an overseas vacation and more.
- Achieve Ultra-Short-Term Goals
Very often, investors spend all their time and energy focusing on the big-ticket goals like – retirement, buying a home, child's education and more, but they forget to make their ultra-short term goals that come true soon.
These are goals that you want to achieve in the next six months to one year. Some examples of ultra-short-term goals include:
- Saving to buy the latest Smartphone on the market
- Purchasing a special anniversary gift for your partner
- Pay the admission fees for joining your child in a new school
- Gifting a weekend trip to your parents and more.
These are goals that people believe they can achieve without planning. But, very often, due to lack of funds, these goals take a backseat.
Investing in a recurring account or a flexible RD like the iWish from ICICI Bank is a great way to meet these goals. With iWish, you can have separate accounts for each of your goals. You can track and progress each goal, and allocate the required funds to each account. What’s more? You can choose the tenure for the iWish Account to match that of your specific goal.
RDs give a structure to your savings
As financial experts say, “the key to successful investment is consistency.” With RDs, you save a fixed sum, every month for over a period, thereby helping you stay invested at all times, irrespective of your varying monthly expenses.
Over time, your returns grow, and your funds help you achieve all your short-term financial goals and dreams.
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