5 ways to earn the best returns through your savings account
Most of the banks offer interest rates of up to 7 per cent per annum on savings accounts. By following a few strategies and tips, you can earn maximum returns from your savings account.
A savings account is a common and fundamental financial instrument that people usually open at the beginning of their financial journey. A savings account, which is mostly the first bank account of an investor, helps to manage money for regular transactions. Apart from that, one should also not overlook the potential of a savings account to earn maximum returns.
Based on the rate of interest that banks offer on savings accounts, there are several ways that can help you earn higher returns. To maximise the potential of a savings account, use the right strategies and financial planning.
How to earn the best returns from a savings account?
GST collection rises to Rs 1.67,929 lakh crore in November, records highest growth rate of 15% Y-o-Y
Brand Retention | 82% of existing Lava users likely to purchase next smartphone from same brand: Report
D-Street Newsmakers: Flair Writing, New India Assurance, Ashok Leyland among 10 stocks that hogged limelight today
India, Africa to be major contributors to 112 million barrel/day of peak global crude oil demand in 2030: S&P
Here are some tips that you can follow to get the maximum returns from your savings account:
High-interest rate: One of the best ways to earn the maximum returns from a savings account is by opening an account with a bank that offers the most attractive interest rate. Based on the interest, the earnings also double up and thus help in saving a lot of money after a certain period of time. Most of the banks are offering up to 7 per cent interest per annum on savings accounts.
Auto-sweep facility: One can use this facility to automatically transfer their excess money from the savings account to a fixed deposit. This can be done after you are sure about your monthly expenses. The auto-sweep facility will not only secure the money in FD accounts, but will also earn a higher rate of return.
High balance: With banks offering interest rates on savings accounts, one should ensure that they maintain a higher average monthly balance. Higher average monthly deposits can help you to earn more returns as banks often offer higher interest rates based on savings amounts.
Recurring deposits: Recurring deposits are also another excellent way to earn better returns through a savings account. While RD schemes involve depositing a fixed sum of money every month to earn interest at rates comparable to fixed deposits, one can opt for these through their savings account to build a disciplined savings habit.
Rewards and cashback offers: On your savings account debit cards, you can get a range of discounts, benefits, rewards, and cashback offers. Making proper use of these rewards can help save a significant amount in the long run. These benefits can be availed of by using the cards for everyday transactions, paying bills online, and exploring other banking services that come with rewards.