Posted by A savings account is a great place to park your cash. Especially in India, they are the first choice when opening bank accounts. However, only some people know the lucrative benefits they can earn through it. Savings accounts are easy to maintain and operate; you can enjoy various facilities with them.
But if you’re looking for a way to get more out of your savings account, consider some different ways. The most basic thing is to look for the banks which offer the best savings account interest rates. A savings account is a preferred deposit account and can be opened quickly digitally.
Even small amounts of interest on your savings account can add up over time, making a big difference in how much money you can earn. Did you know that what is ekyc for account opening can save you time and effort, and also help you start earning interest faster? Instead of gathering physical documents and visiting a branch, you can securely verify your identity electronically through Aadhaar. It’s quick, convenient, and lets you start enjoying the benefits of your savings account sooner.
Here are some different ways to earn higher interest through your savings account.
Understand the Bank’s Conditions
People often need to pay more attention to the terms and conditions before opening a savings account. Understanding the terms and conditions can benefit you in meeting your needs and establishing saving goals. When you know the conditions well enough, you’ll be encouraged to save and earn interest. By avoiding this common mistake while opening a savings account, you can earn a higher interest on your deposits.
Choose A Bank Providing Higher Interest:
An ideal way to earn higher interest on your savings account is to choose the bank meeting your requirements. First, compare the interest rates that various banks offer on a savings account. Then choose the one offering the best savings account interest rate.
Auto-Sweep Facility:
Another way to earn high interest on a savings account is by activating the auto-sweep facility. The excess money in your savings account will be automatically transferred to your Fixed Deposit account through an auto-sweep facility. With this, you will earn higher interest. To avail this facility, link your Fixed Deposit account to your savings account. After linking both accounts successfully, activate the auto-sweep facility on your FD. It is the best way to earn higher interest through your Fixed Deposit without any loss to your savings balance.
Recurring Deposit:
Opening a recurring deposit account can be one of the best choices to earn high interest with a savings account. The minimum amount needed for an RD is comparably low. With a recurring deposit, you can invest a fixed sum regularly to earn variable interest on your savings.
Investing in Certificate of deposits:
Investing your savings in a certificate of deposits (CDs) is similar to Fixed Deposits. It can help you earn more interest in your savings account. For this, you will need to invest the idle funds of your savings account in a Certificate of deposits. Banks issue CDs with a tenure between three months to one year.
Multiple savings accounts:
The best option to maximise your benefits is to own multiple savings accounts. You can easily divide your funds as per your usage by having more than one account. “Consider splitting your financial goals by dedicating different accounts for each. For long-term objectives like retirement or a child’s education, a women savings account can be a great option. These accounts often come with features like higher interest rates or special benefits tailored towards women’s financial needs. Put aside your surplus funds in this dedicated account and avoid linking it with UPI to minimize unnecessary spending temptations. For shorter-term goals like a vacation or gadget purchase, you can use a separate savings account with UPI access for easy transactions.”
Conclusion
A savings account is a way to ensure the safety of your money. However, you can maintain high interest with the tips mentioned above. Several banks offer different types of savings accounts which you can choose from. Moreover, you can enjoy numerous other facilities with digital banking, such as instant account opening online. You can get the best savings account interest rates with just a bit of knowledge and understanding.