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SDP: The Best Monthly Saving Scheme For Middle-Class Families

SDP: The Best Monthly Saving Scheme For Middle-Class Families
SDP: The Best Monthly Saving Scheme For Middle-Class Families
With growing awareness about financial planning, individuals, especially those belonging to the middle-income group are more inclined to proper monetary management today than before. As a means to achieve it, a large number of individuals now refer to savings tools such as Systematic Deposit Plans into their financial regime.

Though there are several savings tools available in the market, the Systematic Deposit Plan can be considered among the best monthly saving schemes. The reason for the same can be accredited to the features which have been formulated to promote savings while generating a steady income.

The following highlights how this savings tool facilitates both savings and income generation:

1. Can Be Started With A Small Deposit Value

The Systematic Deposit Plan offered by reputed NBFC Bajaj Finance as an additional with their Fixed Deposits is a monthly savings tool that requires individuals with a minimum deposit of only Rs.5,000. The low deposit value is vital for those who do not have lump sum funds available to initiate the investment. This enables individuals to jumpstart their savings without straining their available income and other financial needs.

It directly allows individuals to put their limited savings to better use and generate a steady income against it. Resultantly, it is among the best monthly saving schemes for the middle-income group.

2. Offers Risk-Free Higher Returns

Typically, traditional savings options offer individuals a fixed return on their monthly savings. On the other hand, under the Systematic Deposit Plan, each monthly pay-out is regarded as a different deposit, and hence, attracts a different rate of interest. Now, this rate of interest largely depends on the rates that are active in the market. In turn, such a unique feature facilitates the scope of earning higher returns in a favourable market.

Also, under this savings option, individuals benefit from guaranteed returns as their deposits are not exposed to the market-linked risks. This further ensures that even when the financial conditions are not rewarding, depositors’ revenue would not be in a negative value. This negligible risk and substantial reward feature further make Systematic Deposit Plan a viable monthly savings tools for families belonging to the middle-income group.

3. Helps Meet Financial Goals

This savings option comes with a maturity period that ranges between 1 and 5 years. Individuals are at liberty to opt for a maturity period that suits their respective financial goal. Depending on the estimated time required to reach their financial objective, individuals can opt for a suitable maturity period and investment sum.

Also, such a scheme allows them to choose a payment date to ensure that the monthly process of depositing their savings is convenient and less cumbersome.

In case, individuals find it challenging to select a suitable tenor, they may use a systematic deposit calculator to ease the process. With the help of such a financial tool, individuals would be able to gain a better idea of the maturity value and would be able to plan their finances better.

4. Helps To Adopt A Financial Discipline

Being a monthly savings options, individuals are required to put aside a fixed sum of money at regular intervals. By the time the deposits reach their maturity date, individuals develop a positive attitude towards savings.

Additionally, it helps them to curtail their unnecessary expenses and monitor them more carefully. On the whole, it allows depositors to adopt a financial discipline which directly benefits their financial management practices, crucial for middle-income groups.

5. Allows Joint Account Facility

A Systematic Deposit Plan can be opened by multiple individuals as a joint account, favourable especially for accessibility to more than one family member. Such a feature not just enables family members to build a robust corpus with their combined savings but also allows them to continue earning returns on their deposits cumulatively. Moreover, it enables account holders to keep their deposit account active even in the event of the death of their joint holder.

6. No Additional Charges

The Systematic Deposit Plan does not levy any penalty on the depositors when missing any payment. Since accountholders are not required to pay any extra charges or fine, their financial liability is significantly reduced. There are also no hidden charges levied.

7. Liquidity

The liquidity aspect of this savings tool is one of the most useful features for families belonging to the middle-income group. To elaborate, such families often do not have the strong financial backing to fall back on in case of any emergency. However, a Systematic Deposit Plan can help meet urgent financial requirements.

Individuals are entitled to withdraw from their deposits prematurely as per the RBI guidelines. Also, they are permitted to avail a credit against their deposits given they meet the associated rules. The Systematic Deposit Plan can be prematurely withdrawn after the completion of 3 months from the date of deposit.

In a nutshell, the high liquidity, assured and risk-free returns as well as joint account facilities makes the Systematic Deposit Plan one of the best monthly saving schemes available in the Indian market. Plan your finances and invest to build a large corpus for future with minimal monthly deposits.


Author Bio:
Gaurav Khanna is an experienced financial advisor, digital marketer, and writer who is well known for his ability to predict market trends. Check out his blog at Highlight Story.

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