Create An Emergency Fund Of ₹5 Lakhs With A Recurring Deposit
IDFC FIRST Bank
Recurring deposits are fixed-income investments which allow you to save regularly. You can also build an emergency corpus with them. Let’s decode how
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Say you have just started earning and are planning to create an emergency fund of Rs.5 lakhs to deal with unforeseen medical expenses of your family members.
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You estimate a basic emergency fund of 5 lakhs to be created in 2 years. Now, if you assume an interest of 6% p.a., you will need an RD of ₹20,000/month.
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Remember, the monthly investment and the tenure can vary depending on your financial needs.
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So, assess your needs and find out how much emergency fund you would need and when. Then, use an RD calculator to figure out how much you need to save.
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RDs are suitable for emergency planning because they inculcate a sense of disciplined savings and offer guaranteed returns on investments.
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Choose IDFC FIRST Bank Recurring Deposits to build your emergency corpus. Earn attractive interest and choose from a flexible deposit tenure.