A savings account is a fundamental and essential financial tool that most people open at the beginning of their financial journey. This type of account is often an investor’s initial bank account that aids in managing funds for frequent transactions. Apart from that, one should not underestimate the ability of a savings account to generate maximum profits.
Depending on the interest rate banks give on savings accounts, numerous strategies exist to achieve higher returns. To enhance the potential of a savings account, follow the tips and financial planning outlined below.
5 Tips to Maximise the Interest Accrued on Your Savings Bank Account
A savings bank account ensures the safety and liquidity of your cash. It is a popular low-return method for saving money. Nevertheless, you may enhance the revenue from the savings account deposit using a few easy steps.
Look for Zero Charges
Hidden charges on ordinary savings account services may counter a high-interest rate. It’s advisable to carefully review the terms and conditions to avoid any future unexpected costs. IDFC FIRST Bank distinguishes itself by providing 28 commonly used savings account services without any charges, thus presenting a savings account option that prioritises customer satisfaction.
Maximising Interest Rate Benefits
IDFC FIRST Bank presents the best savings account interest rate and a monthly credit facility, accelerating the compounding of your interest earnings. Suppose you maintain Rs 10 lakh in your account, earning 4% interest on your savings. Over the span of one year, your interest income would be:
- Rs 40,000 with annual interest crediting,
- Rs 40,605 with quarterly interest crediting, and
- Rs 40,742 with monthly interest crediting.
Hence, opting for monthly credits results in a swifter compounding of interest.
Utilise Idle Funds Effectively
Utilise the sweep-out and sweep-in features within the savings account to optimise the idle funds and increase your interest earnings. With this facility, any extra funds are automatically transferred to any fixed deposit, where they accrue a high return rate. You can easily sweep the fund back into the savings account if you require immediate funds.
Moreover, the bank employs the same mechanism when the regular savings account balance is low. You can set a threshold within the savings bank account and direct the bank to transfer any excess funds to a fixed deposit account whenever they become available.
Choose a High-Interest Rate Account That Has an Effective Mobile App
The digital era we live in has brought banking closer to our fingertips. Managing your savings, transferring money, and keeping track of savings account interest rates are all made easy with an efficient smartphone app. With its innovative features and easy-to-use interface, the IDFC FIRST Bank mobile banking app offers a comprehensive banking experience right at your fingers. Through this mobile app, customers may also get in touch with IDFC FIRST Bank’s customer support representatives directly.
Consider Demography-Based Bank Accounts
Numerous banks provide specialised savings accounts tailored for different demographics, such as children, youth, and senior citizens. These accounts often feature higher interest rates than standard savings accounts, with senior citizen savings accounts particularly renowned for offering elevated interest rates. If you have a child, opting for a children’s savings account allows you to deposit your funds there and benefit from a higher return on your bank savings account interest rate.
Final Note
A savings account with a high bank savings account interest rate can significantly enhance one’s approach to saving money. It provides attractive returns and includes additional benefits and features that can streamline and improve your financial path. When selecting the ideal account, remember the aforementioned tips and prioritise banks such as IDFC FIRST Bank that resonate with your financial objectives and requirements. By opting for the right high-yield savings account, you can look forward to a promising future of financial well-being.
