Recurring deposit can help in building a house | Owning an asset with the recurring deposit
Everyone is having the responsibility to save some amount in the income and the savings should change in to the asset. For example, if the income is Rs.20,000, then they should take Rs.3000 as saving in the recurring deposit. They can directly transfer the amount in to the recurring deposit through bank. If they inform the bank about it through a letter or application, the computer will automatically transfer of amount. The recurring deposit amount can be changed in to Rs.2,20,128 in five years with an interest of 7.75%. If they buy the plot which will increase its value in the next five years, they can easily own the land in ten years with the increased amount of five lakhs. They can also get the amount of recurring deposit Rs. 2,20,128 in the next five years and they can keep this as margin money and they can build a house by taking housing loan from bank. They should make the good use of the recurring deposit by using properly and changing it in to an asset.