The amount saved for six or more months should not be kept in saving account.
We should convert it to fixed deposits. It is easy to break the deposits as and when there is any emergency and the fund is required.
We have an option of sweep-in and sweep- out wherein the excess money is automatically converted to the fixed deposits. The last deposit is broken if there is any withdrawal.
Recurring deposits can be initiated where a fixed amount is deducted from the savings account and credited to recurring deposit account every month on a scheduled date for a certain period.
The principal amount along with interest is credited to the savings account on maturity of both fixed and recurring deposits.
