Table of Contents
Savings Accounts offer security and liquidity, making them among the most popular low-return options for your funds. Gone are the days when you sacrificed interest for the sake of security. You can now open them digitally without too much paperwork, bank visits, or standing in queues. To increase the income earned from them, you need to follow some guidelines and proven ways:
1. Analyse bank offers
If you aim to earn a high interest on a Savings Account, choose the right bank. While most offer similar rates, some offer special incentives worth checking out. Before opening the account, you should compare the basic interest rates from multiple banks online. It is a simple and smart way to maximise your savings.
2. Sustain a high average monthly balance
Keep a certain average monthly amount in your bank account. You can earn higher interest if you can maintain a high average balance. Banks usually offer an incremental interest rate. Compounding is ideal when you have a high average balance. If you can save more, you can see your savings grow faster through compounding.
3. Select the sweep-in option
The sweep-in facility is a cool automated feature banks offer. If you have money in your account above a specific limit, it gets converted into a Fixed Deposit. Your funds can earn higher interest than they would in a Bank Account. The bank automatically liquidates the FD if you require access to those funds. The sweep-in facility is set up based on the standing instructions you give to your bank.
4. Look into age-based accounts
There are various accounts available for kids, women, and older generations. The Senior Citizen Accounts offer a higher interest than Regular Bank Accounts. Many reputable banks offer them to you if you are over 60 years old. It is worth considering if you want to boost the interest on your savings using the Banking app.
5. Create additional accounts
You should be wise with your finances. If you rely on one account for all transactions, you risk using up all your funds that could have earned you some interest. One of the most proven ways to earn a high Savings Account interest rate is to open multiple accounts and assign specific financial goals to each. You can easily track your money with the help of respective apps.
6. Open a digital account
Many Indian banks offer digital accounts on apps which you can quickly start using. You get high-interest rates, zero balance maintenance benefits, and access to your bank statements and other services conveniently throughout the day.
Conclusion
With a little bit of research and knowledge, you can get the best interest rates. Leverage Digital Banking when opening your account. It is the future of the financial sector.