3 Ways to Score a Favourable Interest Rate on Savings Account
Stashing money in a savings account helps earn interest. It is credited to the account on a periodic basis. But inflation is the top risk concern of 2022. The November Consumer Price Index showed that annual inflation is hitting 6.8% which is expected to average 7% in Q1 2022. This is when the purchasing power can decrease and reduce the value of savings. The good news is that higher interest can balance the effects of inflation.
You are less likely to face a dent in your financial pot. Besides dodging inflation, better savings account interest rate can improve your earnings amid a pandemic. There are ample risk-free strategies that help earn a favourable rate on savings. Take a look.
1. Switch to a High Yielding Savings Account
Find a bank that offers a higher interest rate. This is especially necessary if you are unsatisfied with your current lender. The bank must be able to provide a rate of up to 5%. The best one will help accrue monthly interest credits versus the industry norm of quarterly interest credit. You can also earn ‘interest on interest’ with the top commercial banks of India. This can spike your overall income like a few others.
Do check the fees and charges beforehand. They should be transparent and minimal. Or else additional expenses might end up affecting your funds. Tick off the eligibility criteria and arrange the documents and consider an online saving account opening.
2. Criteria Based Savings Account
A savings account is designed to help earn more on your income. Customers can enjoy excellent perks and benefits while parking their money for long-term needs. You can check a few ways to receive higher interest on your funds. Bank savings interest rates can often depend on a number of factors:
- Higher minimum balance
- Senior citizen/child account
- A specific number of debit card transactions
Check if you can meet these criteria before opening new account. It will then help you enjoy better interest rates and enjoy higher returns on your savings. This way you can earn more, reach your financial milestones easily and live a quality life.
3. Sweep In Facility
It is a feature in which the excess funds are converted into a fixed deposit income. This money starts to earn interest at FD rates. It is usually higher than that of a savings account. You can ‘sweep’ the interest amount to the savings pot. Consider setting up an auto-transfer facility. Excess amounts will be transferred to the FD account whenever there is some extra cash above a certain limit. This is one of the smartest ways to make the most of idle funds.
Bank savings interest rates can be increased by paying attention to these details. Try to maintain a decent balance. Use the interest income to invest in other actively managed fund schemes. For example; and SIP can be a great way to boost your income. The amount can also be fixed for a particular time to help accumulate significant wealth over time.