ROI up to 6.75%* on FD


How to put your appraised salary to good use

  • Highlights

  • Channel your salary hike into savings

  • Repay existing debts faster

  • Invest more to grow your wealth

  • Consider investing in low-risk FDs

Your annual appraisal is an excellent opportunity for you to improve your personal savings. While you might be tempted to use the increase your salary to splurge, in the long run, you will benefit from utilising it more practically.
Here are a few strategies that you can use to when you get an appraisal.

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Save more, spend less:

As you progress in life, you will notice that your spending increases to keep pace with your increased salary. While this is natural, don’t let it get out of hand. Instead of spending the salary hike without a second thought, create a budget for it. You can use 30% of your hike on personal luxuries, and the rest for personal goals.

This may be saving to buy an asset, saving to pay for a course you want to do (be it a hobby or something to add to your career prospects), or even for a vacation you want to go to. This way, you will be investing in yourself or in broadening your horizons rather than in material goods that won’t enrich your life.

Focus on investments:

Choosing a diverse mix of investment instruments, use your salary appraisal to strengthen your kitty. You could consider a variety of options for investment like fixed deposits, equity, mutual funds, PPF and recurring deposits. With every appraisal, rebalance your portfolio and re-invest in schemes that give you good returns. This way you can create a good fund for yourself by the time you reach the age of retirement.
So, with every annual appraisal, use your salary increment smartly. This is the time when you can dedicate more money towards investments and savings and also to meet personal goals with greater ease.

Use it to become debt-free:

Use your salary increase to make part prepayments on existing loans, be it a car loan, a personal loan or even credit card debt. Clearing your dent faster will improve your credit score and give you peace of mind. This way you can plan to take on a larger loan when you need it, say to buy a home for yourself in the future. Creating a budget will also help you amp up your lifestyle while also creating a nest egg for convenient access to money when you need it most.

DISCLAIMER: The mentioned fixed deposit interest rates are indicative only, and may be subject to change periodically. Please check the interest rates on our website.

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End Use

A couple’s guide to prudent investments