Create An Emergency Fund Of ₹5 Lakhs With A Recurring Deposit​

Recurring deposits are fixed-income investments which allow you to save regularly. You can also build an emergency corpus with them. Let’s decode how

Say you have just started earning and are planning to create an emergency fund of Rs.5 lakhs to deal with unforeseen medical expenses of your family members.

You estimate a basic emergency fund of 5 lakhs to be created in 2 years. Now, if you assume an interest of 6% p.a., you will need an RD of Rs.20,000/month.

Remember, the corpus needed and the tenure can change depending on your financial needs. If they do, the monthly investment will also change.

So, assess your needs and find out how much emergency fund you would need and when. Then, use the RD calculator to figure out how much you need to save.

RDs are suitable for emergency planning because they inculcate a sense of disciplined savings and also offer guaranteed returns on investments.

Choose IDFC FIRST Bank Recurring Deposits to build your emergency corpus. Earn up to 6.50% p.a. interest and choose from a flexible deposit tenure.