Saving money is a simple and very powerful way to manage your finances. An average Indian simply believes that a savings account is somewhere they can keep their money safely and still earn modest returns. However, not everyone knows how they can make the most of savings accounts. We are going to share a few useful tips and tricks with you here in this blog that will help you get the most out of your savings account.
Look for High-Interest Savings Accounts
All savings accounts are not equal when it comes to interest rates. Each bank will provide you with different rates according to their policies, and certain accounts are meant to give a high return. However, it is advisable to check interest rates from bank to bank and pick one that offers you a competitive return.
You can compare interest rates online to find high-interest accounts.
Opt for Monthly or Quarterly Interest Payouts
Most banks have flexible payout options, and you can receive earnings on interest monthly or quarterly rather than annually. That way, your interest generates more interest earlier on, maximizing returns through the power of compounding.
Getting frequent payouts also means that you can access earned interest on a regular basis and potentially re-invest it or use it for your needs.
Utilize Sweep-In Fixed Deposits
A sweep-in facility is an option that connects your savings account with a fixed deposit (FD). If the balance in your account exceeds a certain threshold, then this excess will automatically be moved to an FD, which offers higher returns.
Sweep-in accounts also offer liquidity, as you can withdraw them anytime. It is the perfect place to invest when you have no financial discipline and, at the same time, offer greater returns.
Maintain a Higher Balance for Bonus Interest
Certain banks give you bonus interest rates for maintaining a higher balance in your savings account. This may be a wise move if you can generally maintain high balances.
Remember to ask the bank if they have a minimum balance requirement and penalties, as well as the type of accounts eligible for bonus interest rates.
Take Advantage of Bank Promotions and Offers
Banks often have offers and promotions to attract new customers. Special offers may include higher interest rates, cashback offers on transactions, or reward points with deposits. To take advantage of such promotions, keep an eye out for bank announcements and offers periodically.
Check out mobile banking apps to stay updated on these opportunities. Festival times come up with a great deal of such offers, so it is quite an apt time to get extra benefits for your savings account.
Automate Recurring Deposits (RDs)
Savings accounts often allow you to automate recurring deposits. RDs are easy to maintain with monthly contributions and offer better returns as opposed to regular savings accounts.
Plus, the act of making monthly contributions to the RD builds a healthy financial habit of saving.
Invest Through Linked Mutual Funds or SIPs
Modern savings accounts enable you to invest directly in mutual funds or Systematic Investment Plan (SIP). SIPs offer you better returns than the fixed interest rates on savings accounts.
These plans offer potentially higher returns due to market-linked growth and the flexibility of starting with small amounts. It’s an excellent means of keeping all your investments under the same roof, making it more manageable.
Earn Cashback and Rewards Through Debit Cards
Most banks provide cashback, reward points, and discounts on making transactions with debit cards linked to savings accounts.
Using debit cards for day-to-day expenses and bill payments will allow you to get more significant cashback benefits. You can redeem debit card reward points for gifts or vouchers and save more.
Explore Salary Accounts with Added Benefits
In case you are a salaried employee, salary savings accounts usually offer numerous added features such as zero balance requirements, free insurance coverage, and more interest.
Salary accounts provide quick access to money along with additional benefits such as free fund transfers. It is also preferred by customers since it offers complimentary services like free ATM withdrawals and checkbooks.
Use Mobile and Online Banking for Better Management
With mobile and online banking for your savings account, you can see your savings grow in real time, along with the interest you earn. Moreover, several banking apps offer insights into spending patterns and alternatives to save money effectively.
You can set up instant notifications for savings account activity, which will give you a clear view of how to control or use your money.
Final Thoughts
A savings account is not just where you put your money. It can be an investment tool if used correctly. With high-interest accounts, sweep-in facilities, auto-saving, and cashback offers, you can maximize your earnings while keeping it safe.
Learn about banks, banking products, and offers to make more informed financial decisions. Whether you have immediate saving needs or are on the path of building a financial safety net, these simple strategies can increase your savings.
