Why automation is the secret to regular saving Automating your savings makes sure that you save consistently without skipping months. In today’s world, when expenses are on the rise and the modes of payment are many, being disciplined about saving can be difficult. Automating your savings can be an easy answer to keep you on track. You save money on a fixed date from your account through a recurring deposit or an SIP, allowing you to save money before you have an opportunity to spend it.
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Recurring deposits: Low-risk fixed returns Recurring Deposits (RD) can be applied for at post offices and banks. They allow you to deposit a fixed amount on a recurring monthly basis for a specific duration of time. Interest rates on RDs in 2025 vary between 6.5% and 7.5% based on the bank and duration. Since returns are guaranteed, RDs are apt for conservative investors or for short-term needs like holidays, equipment, or school admission. RDs are extremely easy to automate through net banking or mobile banking.
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SIPs: Cyclical, market-related growth You can put your money in mutual funds through a Systematic Investment Plan (SIP), scheduling them monthly, weekly, or every three months. You can start an SIP for 2025 for as low as ₹100 a month. While RDs give you a fixed return, SIPs give you returns from the market, and hence you can earn more in the long run but with a bit of risk. SIPs can be auto-debited through your mutual fund website or mobile app by you or your broker by giving standing instructions to your bank.
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What to invest in as per your objective If your primary objective is protecting capital and ensuring fixed returns, RDs would be ideal for you. Whereas, if you prefer saving for long-term objectives such as purchasing a house, financing the education of your child, or retirement, SIPs provide better growth. In 2025, when inflation is rising, SIPs in equity mutual funds can surpass traditional savings products, and thus are a good option for creating wealth keeping a time period of at least 5-10 years in mind.
How to automate and track your savings Automating your savings is easy. For RDs, log on to your bank's website or mobile banking platform and set up an e-mandate or standing instruction. For SIPs, register at your mutual fund or investment portal, choose a date and amount, and every month your bank will debit the amount automatically. Most mutual funds give you monthly statements of performance, which can help you to monitor your investments and make any appropriate corrections.
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Build a stable future Today, it is not only easier to automate your savings, it's also critical for your financial security. For fixed-goal, low-risk savers, RDs are ideal. For building wealth over the long haul, SIPs are better. Automating sets you free as far as remembering to save is concerned, it also avoids lifestyle creep, and helps you meet your financial targets on time. Choose whichever meets your time horizon and risk tolerance—and let automation do the heavy lifting.
