How to Earn More Interest Through Saving Accounts

A savings account is one of the most preferred methods for saving money. A saving account in a reputed banking institution can help you safely park your savings. One can earn interest on the amount deposited in the saving account. Though the interest rate in a savings account, however, it is one of the easiest ways to earn more. A saving account is safe, secure, and easy to maintain. The various facilities offered in saving accounts allow one to execute the desired financial transaction with zero inconveniences.
 

Savings Account provides several benefits to the account holder. The debit card, bank cheque, and overdraft help one to operate the account as required. One of the major criteria that one needs to consider while opening a savings account is the interest rate.

Every bank and financial institution has a different interest rate on bank accounts. The interest rate depends upon several factors, such as the type of account. It is imperative to do comprehensive research and opt for a bank or financial institution with a good reputation in the market and considerate interest rates.

One must also try to find the personal loan interest rates on the savings account. The personal loan interest rate on the saving account is generally higher than the other accounts. However, in case of an emergency or immediate need of finance personal loan on the savings account can be one of the most suitable options to obtain instant money.

Moreover, as much as a saving account provides you with the desired liquidity and an opportunity to safely keep your money, some ways can help you earn more interest through a savings account.

Let us discuss some of the widely recognized and useful tips to earn more interest on your savings account:

1. Maintain Monthly average balance: Generally, savings account holders are required to maintain a low or a minimum monthly balance. Having a fair or high monthly average balance can help you to earn more interest. If you are consistently maintaining a high monthly average balance then you can recoup the benefits of incremental interest calculations and earn more interest.

You must also acknowledge the power of compounding when you are operating your savings account. A compounding interest rate works well with a high monthly average balance. A 3% interest rate on Rs. 10,000 is 300 but, on the balance of Rs. 100,000 will come to around Rs. 3000.

2. Choose from a wide range of savings accounts: Banks offer different types of savings accounts. The interest rate on the savings account depends upon the type of account that you have with the bank. It is imperative to study the features of various savings accounts before opening your account. For instance, check what are the interest rate on the senior citizen savings account, children's account, NRI account, Women account, and much more. The personal loan interest rate on a saving account may also differ based on the account category. A detailed study of various types of saving accounts and personal loan interest rates can help you to make the right choice.

3. Link your Fixed deposits: The fixed deposit is one of the best ways to earn more interest.t Linking your existing FDs to your savings account with a sweep in the facility can help you to maximize your interest income without compromising your savings account. You can link multiple fixed deposits to your savings account. Linking your fixed deposits helps you to maintain the liquidity in your savings account.


4. Digital account: Some banks do offer some interest benefits on a digital savings account. A digital account not only helps you to keep a check on your savings account easily, but also helps you to perform various financial transactions instantly. Many banks do offer high-interest rates and zero balance facilities on saving accounts. Check for the same with your bank before you open a savings account.


5. Personal loan interest rate: A savings account holder generally gets a good deal on a personal loan. The personal loan interest rate for a savings account holder can be less. Thus, being a saving account holder you can enjoy the benefit of competitive interest rates and a hassle-free loan process.

The bottom line:

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Created on Aug 11th 2022 04:56. Viewed 168 times.

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