Is your hard-earned money sitting stagnant in your savings account, barely earning enough interest to keep pace with inflation? It is a fact that while savings accounts offer security and 24/7 accessibility to your funds, their interest rates have historically been modest. This means that your money is not working as hard as it could be.
However, there are some strategic ways to earn more interest from your bank account. Read on to learn more about those valuable savings account tips.
1. Go for the best online savings account rates
Choosing a savings account with a high interest rate is crucial as it determines how much your savings grow over time. Consider the INDIE Savings Account by IndusInd Bank to earn an attractive interest rate of up to 6.75% p.a., which is one of the best in the industry. Your funds don’t just sit idle, they compound faster and significantly increase your balance over time.
You can open savings account online with INDIE from your home with a 100% digital process. Enjoy no minimum balance requirement, an exclusive 3-tier loyalty program, secure debit cards, and revolving loans in the form of INDIE’s MY Credit Line.
Give your savings the growth potential they deserve with INDIE. Download the app today!
2. Leverage auto-sweep facility to link your FD and bank account
An auto-sweep facility offers the liquidity of a savings account and the high interest rate of a fixed deposit. You set a threshold amount and any funds exceeding that get swept into an FD automatically, where they earn FD-like rates.
Moreover, you can access your FD funds whenever necessary, and the amount you need reverts to the bank account, often without penalty. This feature is highly beneficial for individuals who maintain higher balances in their accounts but want 24/7 access to their funds without losing out on the opportunity to earn more.
3. Capitalise on rewards and cashback offers
Choose saving accounts that offer high rewards in the form of cashback, discounts, deals, or gift vouchers for making transactions through their debit cards.
These rewards increase the earnings from your savings and make daily spending more rewarding. For example, getting 2% cashback on all utility bills and groceries means every ₹10,000 spent gives you ₹200 back. By using your bank account strategically, these initial small returns have the potential to accumulate significantly over time.
4. Open an FD with multiple payout options
An FD offers a higher rate than a regular savings account and offers stable returns over a fixed period. It is wise to opt for an FD that offers multiple payout options, such as:
- Monthly
- Quarterly
- Half-yearly
- Yearly/annual.
The interest payouts help you create an additional income stream that flows directly into your bank account and enhances its growth over time. You can use these funds for recurring expenses or reinvest them in other avenues. This way, you enjoy both stable returns and optimal cash flow management without waiting for the FD to mature.
5. Open more than one savings account
People usually associate diversification with investing, but it is equally important in the context of bank accounts. By distributing your funds across multiple accounts, particularly those offering varying interest rates, compounding frequencies, rewards, or additional benefits, you can capitalise on the best aspects of each.
For example, you can open different savings accounts for:
- Emergency funds: Allocate emergency funds to a high-interest account so that you can manage unplanned expenses without disturbing your other savings. This strategy helps to maintain financial stability while your contingency reserves accrue high interest.
- Senior citizens: A senior citizen savings account often provides higher fixed deposit rates, insurance perks, tax benefits, and other exclusive offers.
- Maximum rewards: By opting for an account that offers more rewards on transactions, you can convert regular spending into an opportunity to grow your savings indirectly.
To wrap up
Whether you are saving for a rainy day, a large purchase, a vacation, or your retirement, implementing these savings account tips today means giving your savings an opportunity to grow effectively. It all starts with choosing the right savings account that not only offers high interest rates but also a 100% digital account opening process, features like auto-sweep FDs, and attractive cashback and rewards.
For further insights, check out our other articles.
