A Systematic Deposit Plan can be a potent savings tool that enables individuals to optimise their savings. One of the best SDP options would require individuals to keep aside a portion of their savings regularly over a period to generate substantial returns on it. Regardless, to maximise their savings with the said savings tool, individuals need to plan their deposits smartly.

Features that help maximise savings

The best SDP option comes with features, which enables depositors to maximise their scope of generating income through them. Here’s how one can benefit from them –

1. Small deposit amount

Individuals with a moderate income can also benefit from this savings tool. The systematic deposit plan requires its accountholder to deposit a minimum sum of Rs.5,000 to start the plan. Such a feature not only helps to mobilise small savings but also helps to inculcate a healthy savings habit without straining their purchasing power. Additionally, it will come in handy to manage their finances better and more effectively.

2. Maturity period

Typically, one of the best SDP tools comes with a flexible maturity period, usually ranging between 1 to 5 years. For example, the Systematic Deposit Plan extended by Bajaj Finance not only comes with a flexible maturity period but also allows deposit holders to choose a convenient deposit date.
Resultantly, account holders can mobilise a portion of their savings with greater convenience.

3. Substantial earnings

Unlike most savings tools, the systematic deposit plan does not come with a fixed interest rate. Since each monthly payment is treated as a separate deposit under this savings option, depositors are entitled to generate earnings on them at different rates.

Hence, individuals are more likely to generate a flexible income through their deposits. In turn, it enhances the scope of earning substantial returns on each deposit and helps maximise the savings significantly. Subsequently, depositors can use a reliable SDP calculator to understand how varying rates of interests would help generate a substantial flow of returns.

4. Risk-free savings option

Usually, the best SDP options tend to remain unaffected in a fluctuating market. For example, unlike market-linked savings tools, the deposits held with this savings tool would not undergo any changes even when the market is weak.

Such a feature shields account holders’ accumulated savings from being eroded, which in turn, serves as one of the best ways of maximising their savings. Resultantly, systematic deposit account holders are often able to meet their financial goals successfully.

5. Withdrawal and cash advance

Other than these, the liquidity aspect and loan against deposits facility tend to come in handy for accountholders during any financial crisis. To elaborate, account holders can withdraw money as per RBI’s guidelines from one or more of their deposits.

Every instalment made in this scheme is treated as a separate fixed deposit. So, it allows you to continue earning interests over certain deposits even when you decide to avail cash advances or withdraw emergency funds against the remaining ones.

6. Joint account facility

This particular savings tools also permit individuals to open and maintain a deposit account with another individual. Further, the steps involved to create a joint account are similar to opening a joint fixed deposit account. Such a feature enables account holders to park both their savings in the deposit account, thus enabling them to save more and earn more on their deposits.

Steps of application

By following these steps, individuals can open a systematic deposit account with ease –

Step 1 – Visit the official website of the financial institution which offers this savings option.
Step 2 – Look for the tab ‘Systematic Deposit Plan.’
Step 3 – Enter information related to your name, contact number and residential address.
Step 4 – Provide details like maturity date, deposit amount, etc.
Step 5 – Verify the information provided and print a copy of the form.
Step 6 – Submit the form at the nearest branch of the financial institution.

Notably, make sure to keep documents that serve as proof of address, identity and employment handy to proceed with the process smoothly.

In a nutshell, deposit holders can make the most of the features of a systematic deposit plan to maximise their savings successfully.

Subsequently, they can jumpstart the process by opening a deposit account online and making regular deposits towards it.

Gaurav Khanna is an experienced financial advisor, digital marketer, and writer who is well known for his ability to predict market trends. Check out his blog at Highlight Story