In these recession times, it is very important to plan spending. Every penny you spend will be important. The tough times will not be end within another couple of months, it is expected to continue for another few years at least. If you read everyday newspaper, there is millions lost job and don’t have work to do. The people who saved some money while they are in the good times will survive till they get good job. Think about those who are not planned their savings and now job less. So, it is always good to spend your money with plans. In our previous articles, we have covered about Tax Planning Tips and Investment Plans. In this article I will be writing about the Fixed Deposit scheme for earning some extra income. This will help you to utilize your money appropriately without losing any potential income.
Don’t Use Saving Account
Most of the people keep the large amount of money in the Savings Account. Normally banks provide 3.5% for the Savings Account which very less interest rates compare to other form of investments. The savings account is only for salaried account when you keep less money in the account. The interest money will be credited to your account on the quarterly basis for all the savings account.
Fixed Deposit Interest Rates
Compare to the savings account, Fixed Deposits are providing the high rate of interest. It was very high when Dec, 2008. beginning this year, all the banks have reduced the FD interest rates to 1%-2%. But, even then it is good interest rates compare to the previous two years. So, it is wise to invest on the Fixed Deposit rather than losing money in other form of investments like Shares and Mutual Funds.
Link to Savings Account
Banks like ICICI, HDFC, etc. providing the options for creating Fixed Deposit through online. One restriction for this is, they will not give you any receipt if you are creating it through online. For example, if you have Rs.200000 in your savings account, then it is easy for you to create FD from your savings account money. There will be option to credit your interest money like Monthly, Quartely, Half Yearly or at the time of Maturity Period. if you select any time period like monthly, you can link your savings account, so that they will credit your interest money into the savings account. This will help you to earn some extra money from your savings on the monthly basis. Below is the sample form for creating FD in ICICI net banking.
Nowadays this facility is available with most of the banks which has the net banking facility.
I hope this article would be more useful for utilizing your money without losing any potential income. So, please don’t keep your money in your saving account, it will loss you a good interest income. If you have any doubts regarding this article, please post comments, I will reply to your comment. Thanks for reading this article. !!!
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