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How to Save Money with PAYTM Recurring Deposit and Flexible RD? Research Team | Posted On Thursday, April 25,2019, 04:19 PM

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How to Save Money with PAYTM Recurring Deposit and Flexible RD?



Most of us struggle finding ways to save money. Saving money is easier said than done. Saving is not everyone’s cup of tea. Saving money is extremely important for all citizens of India. Your savings would come in handy at times when you are short of cash. If you have not saved enough, then you will have to look out for loans to save your skin. You must save some part of your income and invest in liquid instruments or make deposits in a savings bank account.

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

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

1) Manage Money with Paytm Secured Wallet

Paytm is the most popular mobile wallet in India. Paytm was founded by One97 Communications Ltd. It has services like online mobile recharge, post paid mobile bill payment, TV recharge and so on. Paytm has good penetration across the country and many shops accept payments made through Paytm. Vendors and dealers offer discounts and cashbacks on paying with Paytm. You can save a decent sum of money on shopping with Paytm.

SEE ALSO: Is Interest on Recurring Deposit Taxable?

2) Save Money with Recurring Deposit

In India, fixed deposit (FD) and recurring deposit (RD) are the most popular investment schemes. Investing in FD and RD are considered very safe investment options as there are hardly any instances of banks defaulting on these. If you have saved a considerable sum of money, then you can invest in FD. Not everyone would have saved enough to invest in FDs, and hence banks have come up with the RD scheme, in which you invest certain amount each month.

Recurring Deposit is a fixed amount term deposit under which you invest a certain amount each month. Money deposited in RD earns annual interest. All banks and some non banking financial companies (NBFCs) offer the facility of RD.

You can choose the tenure of the deposit and the minimum monthly deposit you wish to make as per your convenience. RD schemes are usually more flexible than FD schemes and are generally preferred by those who want to save and build a sizeable corpus for the future.

The Below Table Shows the Key Features of RD:

Interest Rate

4.00% to 8.00%

Minimum Deposit Amount

Rs 10

Investment Tenure

6 months to 10 years

Interest Compound Frequency


Partial and Midterm Withdrawal

Not Allowed

Premature Closure

Allowed, but with charges

Post office RD can be opened with an amount as low as Rs 10.Note:

  • Interest on RD is compounded on a quarterly basis.

All banks in India offer RD schemes, and interest rates are highly competitive. Interest rates on RD vary between 4% to 8%. RD tenure can vary from 7 days to 10 years. For this reason, RD is a popular investment option for salaried individuals earning a fixed income.

The Table Below Shows the Interest Rate Offered by Various Banks on RD:


Normal Citizens

Senior Citizens

State Bank of India

6.50% – 6.95%

7.00% – 7.45%


5.75% – 6.90%

6.25% – 7.40%


6.25% – 7.10%

6.75% – 7.60%

Axis Bank

6.50% – 7.00%

7.00% – 7.50%

Kotak Mahindra Bank

6.25% – 6.75%

6.75% – 7.25%


6.75% – 7.25%

0.00% – 0.00%

Bank of Baroda

6.50% – 7.00%

6.50% – 7.00%


7.00% – 7.15%

7.50% – 7.65%

Indian Bank

5.25% – 6.50%

5.75% – 7.00%

PNB Bank

6.70% – 7.00%

7.20% – 7.50%

Allahabad Bank

6.50% – 7.00%

0.00% – 0.00%

Andhra Bank

6.25% – 7.00%

6.75% – 7.50%

Bank of India

6.75% – 7.00%

7.25% – 7.50%

Canara Bank

7.00% – 7.35%

7.50% – 7.85%

Central Bank

7.00% – 7.15%

7.50% – 7.65%

Union Bank of India

7.00% – 7.25%

7.50% – 7.75%

Corporation Bank

7.00% – 7.10%

7.50% – 7.60%

RBL Bank

7.00% – 7.85%

7.50% – 8.35%

Syndicate Bank

6.00% – 6.80%

6.50% – 7.30%

3) Save Money anytime with iWish – A Flexible Recurring Deposit

Flexible recurring deposits offer convenience and total flexibility to customers. Flexible RD allows customers to deposit a lump sum, unlike normal RD. A Flexible RD, also referred to as flexi RD, comes with two sections. This includes the core amount, which are deposits made by the account holder at the time of opening the RD, and the flexible amount, which can change with each monthly installment, depending on funds available with you.

ICICI Bank offers flexi RD in the name of iWish. You can invest in iWish, if you are looking to go on a dream vacation, planning to buy a new bike, car or jewelry. Setting a goal, motivates you to save.

Following are the features of iWish:

  • Convenience in choosing when and how much to save.
  • iWish flexible offers the same rate of interest as that of RD/FD.
  • Multiple deposits can be made within a month.
  • Option of online tracking of Recurring Deposits.
  • No penalties on missed deposits.

Steps to open iWish account:

  • You must have a savings account with ICICI Bank.
  • Login to your netbanking account.
  • Click on ‘Open Deposit’ from My Shortcut menu.
  • Click on ‘Open iWish menu- A Flexible RD’.
  • Follow all steps that are displayed on the screen.

4) Create An Excel Sheet To Track Your Monthly Expenses

You can make use of Microsoft Excel to track your monthly expenses. Predict your monthly expenses and note it on an excel sheet. Allocate budget for each expense and try to stick to it.

Compare current expenses with previous month’s and check if you have reduced spending. Try and eliminate unnecessary expenses. In this way, you can track your expenses and understand requirements in a better way.

SEE ALSO: Recurring Deposit Revised Interest Rates

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