Recurring Reassurance
The taxman cometh. And as sure as the new calendar on your wall, it is time to cough up some of what you have earned. As one bank explains, the Recurring Deposit is the perfect scheme to ’save small and earn large’, with as little as Rs.50 at some (Rs.500 at others) for anything from six months to 10 years. Ground rules vary across banks and the post office, so check interest rates and liquidity lifelines. But basically, you earn interest every quarter on your deposit, so the party’s on the bank! Some banks even allow you a loan of up to 85-90 percent of your deposit amount.
It is not just the taxman you will meet with a smile. Other commitments also get easier when an RD matures – use earning from an RD to buy jewelery, renovate your house, etc. That excitement, after months of being good, is tough to beat! If you have a windfall and chose prematurely, you get your money back (at a trifle less interest). But those who see it through to maturity actually get paid for being good.
Man i’m so stoked about Gomi, he is one of my favs of all time