We always have to balance our investments. Previously I had talked about stocks/shares which is a high risk high return investment. The Fixed Deposits and Recurring Deposits are no risk moderate return investments. For me there is no less return in any kind of investment. Any return is moderate to high. Just the though of investment make it more than less. So talking about Fixed deposits, it gives me a peace of mind at any point of time that I have some amount which I can use it during my mishaps. We never know when we might require cash. So My first investment would be to open a FD with the bank I have a saving account, so that I don’t have problems en-cashing it. Next would be an RD so that some money goes into saving every month just not pinching me hard on monthly expenses. It is good to have about at-least 20-30% of the income to RD. But any amount to start so that we get the habit of saving is more important. Later we will definitely realize its importance and increase the amount. Whenever I get some lump-some I put it in FD so that its safe and doesn’t allure me to spend it immediately. The best part of FD and RD is it hides my money just behind my back so that i don’t spend it upfront. And since I have an ICICI account, where I can create new FDs Rds just in moments online and also credit it back to account easily and even before maturity date without penalty. So I just blindly put all my extra money into FD and think of it later where to investment. Since I am not going to lose anything by creating and withdrawing before maturity I just do it blindly. This strategy has helped me alot for the past 4 yrs… Thanks to ICICI(http://www.icicibank.com) also, that I could do all this so easily online I am not sure about other bankc which offer these facilities. ICICI banking and demat seervices have helped a lot to juggle my investments accross FD,RD,Shares,Gold ETF, MFs .
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