You need money to live a comfortable life. Typically, your professional activities would be your primary income source. However, have you wondered what happens in case of a pay cut, lay-off, or retirement? You should create alternative income sources; investments can help you. Opt for an investment avenue that aligns with your investment objectives.
Recurring and Fixed Deposits are India’s most popular avenues. You need to make a one-time investment with an FD. You build your corpus over time by making small contributions with an RD. Both avenues are secure and offer decent interest returns.
When should you invest in FDs?
- FDs require you to make a lumpsum deposit. Hence, invest when you have a significant amount handy. Make sure you create a financial plan before investing. If you foresee a financial requirement, refrain from investing in FD, as you may need to break it prematurely.
- Investing in an FD is the most viable option if you want to earn a regular interest income. You can earn competitive FD interest rates on your deposit. Note that every financier offers a different interest rate. You should compare all offerings and invest with a financier extending the highest interest rate.
- Invest in an FD to create a contingency fund, secure yourself from job uncertainties, economic fluctuations, and finance last-minute travel plans.
- You can invest in FD within minutes using a Banking App. Just fill out the investment form, submit the necessary documents, and invest. The app also helps track your FD and other investments.
When should you invest in RDs?
- RD is a perfect option if you want to invest with limited financial resources. You can invest by making a nominal contribution of Rs. 100 per month. Generally, invest an amount that aligns with your investment goals.
- Like FDs, an RD earns you fair interest returns. RD interest rates vary for every bank. You should invest with a financier offering the highest interest rate to maximise your returns.
- Consider RDs to meet any goal systematically. Suppose yourchild aspires to become a pilot. You can save for their future educationfrom today with an RD. Note that a minor RD Account would be under a guardian until the child is 10 years.
- If you wish to plan your investments, an RD calculator is a fantastic online tool. You need to enter key variables, and the calculator projects your estimated returns within minutes. You can access the RD calculator on any leading bank portal or app. You can use the online tool any number of times, free of charge.