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Tips on Making Your Money Grow Through Bank Deposits

July 28, 2014  by: ushakiran  Points: 12   Category: Investment  Earning $0.80   Views: 1180

A few useful points and tips that help you invest wisely and make your money grow !

         

Money power
The power of money cannot be ignored since we need money to fulfill all our wishes - be it the basic necessities ,travel or luxury items. Money is most essnetial now for iving. So we need to earn and also save money to make most our dreams come through.

These days we find banks and ATMs springing up everywhere , in the smallest of towns and in villages too You have at least a local co operative bank in villages where people can deposit money and take loans and utilise other benefits.

Three is also the added facility of online banking which has further made our lives easier by providing almost all facilities which we can use sitting at home, bringing the institution of banking to our door steps.

However, many people are still unaware of what facilities are available to them and how they can use the facilities to their maximum advantage. Their bank usage remaining mostly to withdrawal and deposits and may be taking personal loans as and when required.




I am listing down a few useful points and tips that help you utilise the facilities to the maximum and make your money grow without much effort

1, Once you decide on having a bank account it makes sense to have at least two accounts in two different banks - one in State bank of India or any other nationalised bank and another in a reputed private bank . Having an account in SBI and other nationalised banks has an added advantage , in that it can be used as ID proof for any official documentation.

2, Having opened two accounts, try to get all the facilities that come with your account like an ATM card and online banking facility which will be very useful for your various money transactions.

3, Your salary may get remitted to one of the bank accounts After you have worked out the requirements for your monthly budget transfer the rest of the money into the second account which you make sure never to use for your daily transactions and withdrawals towards expenses .This money is your saving for the future . This is the money that you need to nurture and make it grow like a plant.

4, Suppose you save Rs 2000 on a monthly basis , at the end of 5 months you have Rs 10,000 in your second account which you should ideally put into a long term fixed deposit . Long term compounded interest added up over a period of time multiplies money faster than we think.

5, When you put money in a fixed deposit for a year you earn interest which may be paid to you either monthly, quarterly or half yearly. Most likely you may end up spending the interest amount. Instead, if this interest is reinvested you end up multiplying your money.

A simple table shows this

Rs 10,000 invested for a year at 9.5% earns Rs 950 at the end of the year.
If this amount along with the interest earned is reinvested ( 10,00 + 950 = Rs 10,950 ) again for another year at 9.5% you get 10,950 + 1,040 = Rs 11,990. If you keep reinvesting this money every year you can be sure that your money keeps growing. You dont need to do anything much about it since banks do it automatically if you instruct them to invest the money when the deposit matures.

6, When you have extra cash you can invest without feeling the need to use it, you should ideally make it into a long term deposit of either 7,8 or 9 years. At the end of the period you will see that your initial deposit has doubled.

7, Bank investments are probably the safest investments compared to others like Gold, where the prices fluctuate and shares , which if not invested wisely and monitored can be full of risks.

8, You cannot be careless with your money and money saved wisely can come in handy during your times of cash crunch or financial emergencies like childrens' education and buying property or household goods. Instead of taking loan or going in for monthly installment schemes where you end up paying more than double the amount, you can make an outright purchase and save money.

9, When you have children make them aware of the power of money and investment right from early childhood, by opening a junior account monitored by you , where they deposit their gift money or pocket money and watch it grow . Even if it is a small amount it gives them immense happiness and satisfaction to watch it grow. This also teaches them the importance of saving and letting money grow. Another important purpose served here is that, children being involved in saving money and having learnt the importance of money will become much more understanding and much less demanding.

Conclusions

Once you get into the habit of saving and investing your money, you start finding ways to save more by cutting down on unnecessary expenses. When the whole family is involved it becomes a pleasant task to save money and watch it grow through investments. It also gives you something to look forward and plan to make your future life comfortable and secure.




Comment(s)
Author: Joina        
Posted Date: 08/04/2014    Points:4    

We can''t live in this world without money. Without money we don''t get anything. So we should try our maximum to make money without depending others. Married women always have the habit to depend their husbands for money. Sometimes they get money from their husbands. But not always. In my opinion, each women must find out a way to make money. We all are created with some skills. We have to find out our skills and utilize this skill to make money. Start a bank account of their own and save the money. Then all ladies will be financially independent.
Author: ushakiran        
Posted Date: 08/05/2014    Points:3    

I totally agree with you Joina. Each one of us need to be financially independant, otherwise a person esp women tend to lack self confidence because of their dependance on either their parents, brothers or husbands. It is not at all difficult to earn at least some ppocket money even if it is not possible to go in for a full time job since many women have to look after their small kids and manage the home ..

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