How to make the most of a flexi recurring deposit?

When it comes to financial investments, there is always a requirement for a disciplined, regular and systematic saving habit. While it may seem like a difficult process for many, several banks and financial institutes have introduces several flexible investment options to help you invest in the most convenient manner. One of the options includes the recurring deposit.

With the normal recurring deposit, you will need to invest a small amount on a fixed date and on a monthly basis. As opposed to this, certain recurring deposits will provide you with the freedom to deposit any amount of sum you require, at any time you want. Additionally, some financial institutes or banks also offer the freedom to skip an installment without worrying about any penalty about it. Some banks and financial institutes also offer flexible RD’s to appeal to the younger generation, so as they can start investing at a young age. All these features come under the flexible recurring deposit.

With all these offerings available, how can you optimize your investment? By being aware of certain features of this termed deposit, you can take advantage and create the ideal flexible deposit.

Here are some of the few features you need to be aware of:

• It is a high probability, that the more freedom one receives, the higher is the chance to misuse it. The Flexi recurring deposit is one way to avoid this chance. Through this deposit, you can use the recurring deposit calculator to calculate the ideal sum that needs to be invested. Once this is done, you can set up an auto debit instruction for your deposit. In this way, you can control how much of your funds will get deposited, while sustaining other financial requirements. Through this process, your fund will already be deposited after your salary has been credited to your account.

• The second condition you must be aware of is flexible investment amount. Through this step, you can easily save your funds, without much effort. With a Flexi recurring deposit, you can take a conscious decision as to when and how much you can invest on a monthly basis. However, banks or financial institutes that are offering this feature, often also provide certain caveats to this feature. One of the most common conditions is minimum or maximum investment amount. Therefore, if you want to invest with a flexible amount, you will need to invest an amount that is within the given investment amount range. Depending on the amount you will invest, the resulting interest rate is calculated.

• Added to this feature of the termed deposit is the tenure of the investment. Some banks offer a tenure that lasts between 6 months to 5 years. However, you must be aware that the rates for during this tenure will not remain the same. You can use the recurring deposit calculator to calculate the ideal tenure and investment amount as per your financial requirements.


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