What are the Benefits of Automating Your Savings?

Want to grow your money without constantly thinking about it? Automating your savings is one of the smartest ways to stay consistent and build wealth over time. One easy way to do this is by investing in a Recurring Deposit (RD). With RDs, you can save a fixed amount every month and earn interest on it—without worrying about market ups and downs.

In this post, let’s look at how automating your savings with RDs can make your financial life easier and more rewarding.

1. Builds a Saving Habit

Automating your savings helps turn saving money into a regular habit. It keeps your spending in check because the money is moved straight into your RD before you even get a chance to use it. This helps you save smarter, stay disciplined, and grow your money steadily.

2. Keeps You Consistent

One of the biggest benefits of setting up an RD is the consistency it brings. When you use auto-debit, the bank automatically takes out the set amount from your account each month. You don’t have to remember to do it or worry about spending that money elsewhere. It just happens—like clockwork!

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3. Flexible for All Goals

RDs are super flexible. Whether you’re saving for something small or planning for the long haul, there’s an RD that fits your goal:

• Short-term RD (6–12 months): Perfect if you’re saving for a trip or a new gadget.
• Medium-term RD (1–5 years): Great for goals like your child’s school fees or buying a bike or car.
• Long-term RD (5–10 years): Ideal if you’re planning for retirement or buying a home.

You can even use an RD calculator—available on most bank websites—to see how much you’ll earn based on your deposit amount and duration.

4. Safe from Market Ups and Downs

Unlike stocks or mutual funds, RDs are not affected by market changes. The interest rate is fixed when you open the RD and stays the same until the end. So, even if the market crashes, your savings grow safely and predictably.

This makes RDs a reliable option—especially during uncertain times when other investments may feel risky.

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How to Set Up an Automated RD

Setting up an RD is simple. Here’s how:

1. Pick a Bank: Choose one that offers good interest rates and solid customer service.
2. Open an RD Account: You can do this online or by visiting your bank branch. Already have a savings account with Ujjivan? Then it’s even easier—no extra documents needed.
3. Log in to Internet Banking: Use your bank’s online or mobile banking app.
4. Go to the Deposits Section: Find the part of the app or site where you manage savings or investments.
5. Select Recurring Deposit: Choose the RD option to begin setup.
6. Choose Tenure & Amount: Decide how long you want to save (6 months to 10 years) and how much you want to deposit each month.
7. Enable Auto-Debit: Set it up so the money is automatically taken from your savings account every month.
8. Review & Confirm: Double-check everything—amount, tenure, auto-debit setup, and nominee details.
9. First Payment: Usually, the first payment is made right away, and the rest will follow monthly on the same date.

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Final Thoughts

Automating your savings with a recurring deposit is a stress-free way to build wealth. With fixed returns, flexible terms, and the power of compounding interest, RDs make it easy to stay on track with your goals—big or small.

💡 Start small, dream big! With Ujjivan Small Finance Bank, you can open an RD with just ₹100 and earn higher interest rates. Whether you’re planning for a vacation or your future, start saving today and enjoy peace of mind.