How to Save Money with PAYTM, Recurring Deposit (RD) and Flexible RD.

Many Indians are struggling to save money, I was one of them. In this post, I want to share experiences of my journey to save money with the help of paytm, Recurring Deposit and Flexible Recurring Deposit.

As I always say that I am not an expert, I am just sharing my experiences. With the help of these ideas I am able to save money and now I am happy to see the savings.

In this post I will discuss four simple steps that I followed to save money and I promise these ideas will definitely help you also to save money.

Within few weeks/months of following these tips, you will see the results and say "Wow! I have saved a lot."

Few months before I didn’t have any savings despite of earning good through My Regular Job, Training Sessions and AdSense Earning.I earned a lot of money within few years still My Deposits were 0 (Zero).

You all must be aware about PAYTM, Recurring Deposit and Flexible Recurring Deposits still I am giving you a brief description about these applications/features provided by the bank.

PAYTM

PAYTM is a website and mobile application founded by One97 Communications. PAYTM provides services like online shopping, online bill payments, online mobile recharge, TV recharge, and post-paid mobile bills etc including PAYTM Wallet in which you can keep the money for your daily/monthly expenses.

RECURRING DEPOSITS

Recurring Deposit is a fixed amount term deposit at every month provided by any bank in India. You can read about RD on Wikipedia - Recurring Deposit.

By depositing a fixed amount per month for given time period you can save a good amount with interest.

FLEXIBLE RECURRING DEPOSITS

I have an account with ICICI that provides the feature of flexible recurring deposits (other Banks might also be providing this feature). I am thankful to my Bank for providing such a great and helping feature.

In this feature, you will have to create a goal ( iWish Goal) with an amount. For example, you want to create a goal of buying a Car and want to deposit 2,00,000/- INR. Just sign in your ICICI main account, go to the i.wish create a goal for "Automobile" Category. Define Deposit Amount and Create Goal by depositing your first instalment (500/- INR is the minimum amount that one can deposit).

If you are thinking, when you can withdraw this amount? Do not worry. You can withdraw this amount any time after closing your Goal and within few working days (2 to 3) deposited money will be credited to your savings account. I have already closed two goals and got the full money with the earned interest.

In Flexible Recurring Deposit you can deposit money whenever you have the required amount, suppose you have 500 INR in the morning, you can deposit the amount in Flexible RD account/ Goal. If you get 1000 INR from somewhere in the evening, you can also deposit this amount instantly.

Here are the four simple steps that you can take for financial freedom.

1) Create an Excel Sheet to Track your Monthly Expenses

It is the best idea to create an excel sheet for your monthly expenses. You can analyse and compare various expenses on monthly basis.

Here is a sample excel sheet (snapshot) that I used.

By comparing the current and last month expenses you can reduce unnecessary expenses.

2) Manage Money with PAYTM Secured Wallet

How I reduced the unnecessary expenses by tracking payments through PAYTM wallet. Before using PAYTM, I never tracked my daily/monthly expense and my credit card bill was too high.

What you have to do?

In the starting of the month, add the amount (according to your budget) in your PAYTM wallet for your daily type expenses like Mobile Recharge, Restaurant Bills (Most of the restaurants accept PAYTM Money), electrically bill and other bills (Monthly Expenses), movies ticket booking, bus ticket booking etc.

Make sure the expenses should not exceed the amount you decided.

3) Save Money with Recurring Deposit

Open a Recurring Deposit; you can easily open it online. Transfer a fixed amount monthly for the RD; you will get a good return with good interest rate.

Before opening a recurring deposit, keep these points in mind:

• The time period which has high interest rate go for that.
• Does your bank provide a feature of closing it instantly?
• How much time it takes to get the deposited amount into your account after the term of RD ends.
• Is there any minimum time policy to close a recurring deposit - if yes, please think twice before opening recurring deposit in such banks?
• Are you able to deposit money till last month of the term - if not, reduce monthly fixed deposit but try to deposit all instalments?
• Are there any hidden charges to close Recurring Deposit before time period?
• What is the procedure after the term of RD end, how you will get money in your savings account.

No matter whether you are earning less or more, I would recommend opening a Recurring Deposit account according to your budget and save money for financially safe future.

4) Save Money anytime with iWish – A Flexible Recurring Deposit.

I really don’t know and I don’t want to know that which banks provide this feature. I have a Bank Account with ICICI and I am thankful to ICICI for providing such an amazing feature.

If you don’t have an account in ICICI Bank, consult with your bank or open an account in ICICI Bank.

Flexible RD is similar to RD but there is no time limit to deposit, you can create a goal (iWish Goal – in the case of ICICI Bank) with depositing minimum amount you have (500/- is the minimum amount one can deposit).

Within few minutes your goal will be created and then you can pay any time in a day, week, and month. I personally have three more iWish Goals for different future needs. When I get money from somewhere I instantly transfer into my Goals.

Same points (written with Recurring Deposit) to confirm with your bank, if another bank provide this feature.

Steps to open an ICICI iWish – A Flexible Recurring Deposit:

• You should have a savings account with ICICI bank .
• Sign into your account.
• Click on Open Deposit from My Shortcut menu (Left Menu Navigation).
• Click on Open iWish menu- A Flexible RD.
• Then follow the steps mentioned on the website.

Here is the link of ICICI iWish Account Details.

Thanks!

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