Why You Should Automate Your Savings in 2025 – Expert Tips

Shreya started earning ₹60,000 per month and initially saved ₹3,000 manually each month. However, she struggled to stay consistent. So, she set up an auto-debit of ₹6,000 to her SIP and recurring deposit. This simple change helped her save ₹1.2 lakh in a year.

‘Ye kya hua… kab hua?... kaise hua?’ The simple answer is automation. ‘Kab, kaise?’ Let’s discuss in this blog.

1. Build Consistent Financial Discipline

‘Ek baar jo commitment krdi toh apne aap ki bhi mat sunna!’

Prerna had set a New Year's resolution to invest ₹2,000 into a digital recurring deposit every month. A year later, she had saved ₹24,000 plus ₹875 in interest (at 6.5% p.a.)

Automating transfers means savings happen before spending even begins. You should begin with just 5% of your monthly salary. It can be automated weekly or monthly, and increase this by 1% each year. This way, savings grow with your earnings.

For example, Neha decided to auto-save ₹1,000/month into a liquid mutual fund starting April 2022. She didn’t increase the amount, but never skipped a month. By April 2025, her ₹36,000 investment grew to ₹39,920. 

The table shows her investing journey via automation. 
 

2. Remove Impulse Spending

‘Ek baar dekho, hazaron ka kharido’

Vishal reminds me of that one phrase, ‘Out of sight, out of mind!’ He used to spend thousands on food delivery and online sales. In January, he automated ₹2,000/month into a separate “do not touch” account. In 3 months, he had ₹6,000 saved. 

With automated savings, money isn’t available for those “treat yourself” moments. Like Vishal, you should create separate auto-accounts, name them “Emergency,” “Vacation,” “Investments.” 

For example, Raghav used to spend ₹2,500/month on gaming subscriptions, instant food apps, and online deals. In Jan 2024, he auto-transferred ₹2,000/month to a separate "Goals" account for a new phone. In 6 months, he saved ₹12,000 and stopped 70% of his random spending.

Now, that looks like a good habit. Let me simplify his investment for you with the help of the table below.
 

3. Compound Interest

‘Samay bada balwan!’

Karan started automating ₹500 into a high-yield digital RD in 2015. At 6.5% annual interest, he now has ₹92,408 by 2025. The sooner money is saved, the more it benefits from compounding. 

Automating means your account grows month after month, earning returns on both principal and interest. If you are a beginner, start with automating ₹500/month into a high-yield savings or digital recurring deposit. In a decade at 6% interest, you’ll accumulate over ₹90,000 from just small contributions.

For example, Rajeev set an automatic transfer of ₹1,200/month into a digital recurring deposit starting in January 2020. The bank offered 6.75% interest compounded quarterly. After 5 years, he had invested ₹72,000 and earned ₹13,085 in compound interest. So, now the total was ₹85,085.

The table shows his compounding journey, which was automated by an app.
 

Conclusion

When you can automate your work with AI, then why are you being a ‘khadoos bua’ with your saving?. Let it grow, bro! Automate your savings; it’s essential these days. Savings need discipline, zero impulsive spending, and the power of compounding. Trust me, most of us lack these. So, use automation to create such good habits. ‘Mummy verified!’

Frequently Asked Questions

1. Should you automate your savings?

Absolutely. Automating savings helps you save before spending. Even ₹1,000 auto-debited monthly becomes ₹12,000 a year. It builds a habit and avoids temptation.

2. What is the 1% saving rule?

Increase your savings by 1% of your income every year. Start small and grow slowly. It aligns with income growth and makes saving effortless over time.

3. What is the 50-30-20 rule for savings?

Spend 50% on needs, 30% on wants, and save 20%. Automate that 20% right after payday so you don’t accidentally spend it. It’s a simple budgeting trick that works.

4. Which bank gives 7% interest on savings accounts?

As of 2025, Utkarsh Small Finance Bank (6%) and DBS Bank offer up to 7% interest. Rates vary by balance slabs, so check terms before opening a savings account.

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LoansJagat Team

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