How to Link Your RD to Your Savings Account

December 03, 2024

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When it comes to managing your finances, finding ways to ease the processes can help solve a lot of issues. Linking your Recurring Deposit (RD) to your savings account, makes it easier for you to manage both the accounts and helps in seamless transfers. 

 

In this article, we will explore the concept of linking your RD account to your savings account and discuss its benefits. 

 

Benefits of Linking RD to Your Savings Account

Linking your RD account to your savings account offers several benefits that can positively impact your financial management. 

 

1. Convenience and Automation

When you link your RD to your savings account, the amount you wish to save each month is automatically deducted from your savings account and transferred to your RD. This automation eliminates the need for manual transfers and ensures that you stick to your savings plan without any hassle.

 

By automating the process, you save time and effort, allowing you to focus on other aspects of your financial planning.

 

2. Higher Interest Rates

RDs typically offer higher interest rates compared to regular savings accounts. When you link your RD to your savings account, you can take advantage of these attractive interest rates and grow your savings faster.

 

The additional interest earned can make a significant difference in the long run, helping you achieve your financial goals sooner.

 

3. Goal-based Saving

Linking RD to savings account allows you to set specific financial goals and work towards them systematically. Whether you're saving for a down payment on a home, a dream vacation, or creating an emergency fund, this arrangement helps you allocate funds towards these goals with ease.

 

You can customise the deposit amount and duration of the RD based on the target amount and timeline for each goal, ensuring that you stay on track.

 

How to Link Your RD to Your Savings Account

Step 1: Choose a reliable bank or financial institution that offers both RDs and savings accounts. Ujjivan SFB provides a range of banking services tailored for urban and semi-urban Indians, making it an ideal choice for this purpose.

 

Step 2: After shortlisting the bank, open a savings account if you don't already have one. This can be done easily through the website or visiting a branch near you.

 

Step 3: Once your savings account is set up, inquire about the bank's RD offerings and choose a plan that suits your financial goals. 

 

Step 4: Provide the necessary documents, such as identity proof, address proof, and PAN card details set up your account.

 

Step 5: Request the bank to link your RD account to your savings account. The bank will guide you through the process and ensure the automation of transfers between the two accounts.

Final Thoughts

Link your RD to your savings account to enhance your savings potential. By automating deposits, taking advantage of higher interest rates, and setting goal-based savings plans, you can make significant strides towards achieving your financial goals.

 

Start small, dream big! Invest in Ujjivan Small Finance Bank’s Recurring Deposit and enjoy higher interest rates! Save for your long- and short-term goals with our RD and live a stress-free financial life. Start investing with just ₹100!

 

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FAQs

1. What is the process to link your RD to your savings account?

To link your RD to your savings account you can begin by opening a savings account, followed by a opening recurring deposit account and asking officials at the bank to link both. This way your bank account setup between the savings account and recurring deposit account is done. 

2. Is linking my RD account to a joint savings account possible?

Yes, linking your RD account to a joint savings account is possible, but would still depend on certain factors. Contact your bank to inquire about this feature

3. Are there any charges for linking my RD to my savings account?

Linking your RD account to your savings account may not entail any charges. It's advisable to check with your bank for any applicable charges.

4. What happens if I close my savings account linked to an RD?

If you close your savings account linked to an RD, the automated transfers between the two accounts will stop, and you may need to contact your bank to make alternative arrangements.

5. Can I change the deposit amount or tenure of my RD after linking it to my savings account?

Changes to the deposit amount or tenure of your RD may be possible but depends on the specific terms and conditions set by your bank. Contact your bank for more information.

6. What happens if I miss a monthly deposit in my RD?

Missing a monthly deposit in your RD may result in penalties or a reduction in interest earned. It's important to maintain regular deposits to maximise the benefits of an RD.

7. Can I withdraw funds from my RD before maturity?

Withdrawing funds from an RD before maturity is possible but may attract penalties or lower interest rates. Consult your bank for their specific policies on premature withdrawals.

8. Can I link my RD with a different bank's savings account?

The ability for linking your RD account with a different bank's savings account varies between banks and is subject to their specific policies. Contact both banks involved for more information.

9. How does linking my RD to my savings account benefit me?

Linking your RD account to your savings account offers convenience, encourages regular savings and allows for flexibility in investment.

10. Do I need to renew my RD after maturity?

No, you don't need to renew your RD after maturity. The principal and interest will be automatically transferred back into your savings account.

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