How to Link Your RD to Your Savings Account

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.