Customising your bank account
You can customise bank accounts so that your needs are exactly met.
Just remember that fixed deposits are for a fixed period and your deposit has to recur in
recurring deposit, where it accumulates to a tidy sum. A combination and permutation of
these accounts can meet most of your requirements. Here is one example:
I decide to go for a ULIP(Unit linked Insurance Plan) account. I select the target amount
as Rs.75,000/. It would require me to deposit Rs.7,500/ per year. Now this is a set
requirement of Rs.7,500/ per year. I have three options to chose from :
Save Rs.750/ every month in my savings/current account so that at the time of payment I
have Rs.7500/ to pay UTI.(Total payments: Rs.75,000/
Open a new Recurring Deposit account every year for one year with monthly deposits of
Rs.600/ and pay the premium every year (Total payments: Rs.72000/. I save Rs.3,000/)
Open nine Recurring Deposit accounts with my bank with one account maturing every year
This will require me to pay as follows:
Rs.7,500/ at the time of entering the scheme
Rs.600/ + Rs.300/ + Rs.180/ + Rs.130/ + Rs.90/ + Rs.70/ + Rs.60/
+ Rs.50/ +Rs.40/ total Rs.1520/ per month in the first year (Total Rs.18240/)
Rs.300/ + Rs.180/ + Rs.130/ + Rs.90/ + Rs.70/ + Rs.60/ + Rs.50/
+ Rs.40/ total Rs.920/ per month in the second year (Total Rs.11040/)
Rs.180/ + Rs.130/ + Rs.90/ + Rs.70/ + Rs.60/ + Rs.50/ + Rs.40/
total Rs.620/ per month in the third year (Total Rs.7440/)
Rs.130/ + Rs.90/ + Rs.70/ + Rs.60/ + Rs.50/ + Rs.40/ total
Rs.440/ per month in the fourth year (Total Rs.5280/)
Rs.90/ + Rs.70/ + Rs.60/ + Rs.50/ + Rs.40/ total Rs.310/
per month in the fifth year (Total Rs.3720/)
Rs.70/ + Rs.60/ + Rs.50/ + Rs.40/ total Rs.220/ per month in the
sixth year (Total Rs.2640/)
Rs.60/ + Rs.50/ + Rs.40/ total Rs.150/ per month in the seventh
year (Total Rs.1800/)
Rs.50/ + Rs.40/ total Rs.90/ per month in the eighth year (Total
Rs.1080/)
Rs.40/in the nineth year (Total Rs.480/+)
I save a goodly sum of Rs.15780/ (7500059220). In addition, a little bit extra will be
left every year as the target amounts of Recurring Deposits are slightly in excess of
Rs.7,500/ except in 5th and 6th year when it is less by Rs.100/ and Rs.126/. I am also
saved of interest change shocks in today's volatile times. (Rate of interest applied 10.5%
for 1 year:11.0% for 2 years 12% for 3 years and above. These amounts may change a little
with the change in rate of interest.)
If you come across a tough situation where you cannot customise, you
can seek help at banknetindia through our helpline.
