A savings account is a deposit account
where you park surplus money. You can encash this amount at any time without
penalties. It is different from a checking account which you may use to fund
purchases, write cheques or for ATM withdrawals. This is why it is considered
to be one of the most liquid investments compared to regular ones. The best
banks understand the benefits of saving for the future for yourself and your
loved ones.
This is why they offer industry-best interest rates. One can save more and live
life to the fullest. The account is convenient to operate with an app. Look at other
perks and how much interest one can expect if they open a savings bank account.
High-Interest Rate on Savings Account
The top Indian bank offers interest up to 6% for a maximum balance of ₹50 lakhs. A high-yielding savings account can grow your money with zero risks. It provides returns that help adjust for inflation in future. This means you do not have to battle the reduction in the purchasing power of money. One can accumulate significant funds in the savings account to avoid compromising on their lifestyle or tick off a few financial goals. You can use a robust bank interest calculator to get an idea of the interest and the additional interest that is earned if you invest a certain sum in the savings account.
There are several ways to earn high interest. Here’s a look.
- Pick certain types of criteria-based savings accounts. This will include a minimum balance or a number of card transactions to offer higher interest.
- Consider opening online bank account for senior citizens or children that offer a significantly higher rate than the regular one.
- Sweep-in from your fixed deposit to the savings account to increase the balance. It can help ensure better returns in future.
- Sweep-out the surplus funds, if any, to your FD account. This is another way to ensure big returns.
Your funds continue to be liquid even if the income increases. There is an option of monthly interest credit versus the industry norm of quarterly interest credit. So, do consider one of the above methods for better ROI before opening an online bank account.
Other Benefits of a Savings Account
A good savings account comes with a series of perks to ensure an exciting experience. You can get a VISA Signature debit card with an average monthly balance of ₹25,000. This comes with complimentary domestic airport lounge access twice every quarter with free unlimited ATM transactions at any bank anywhere in India. Other benefits are a higher POS limit, ₹35 lakhs free personal accident insurance cover and ₹1 crore free air accident insurance. You can also download the mobile app to track spends and rewards and check your risk-profile and see the cash-flow analysis.
A savings account is a boon for first-time bankers. If you look around, you will find different types with unique features and benefits. Try to explore each one and talk to your bank experts to pick the most suited one as per your goals. Savings are less-complicated, quick and readily accessible. Make sure to read the terms and conditions beforehand for an informed decision.