Simple ways to earn higher Interest on your Savings Bank Account
A Savings Account offers security and liquidity, making it one of the most popular low-return options for your funds. To increase the income from your Savings Account, consider the following tips:
Look for trusted banks to open a Savings Account
Choose a bank that offers a high interest rate Savings Account. However, a high interest rate comes with exorbitant maintenance charges. ICICI Bank offers an interest rate of 3% to 3.5% on Savings Account without levying any maintenance charges.
Use idle funds effectively
The sweep-out and sweep-in facilities benefit of a Savings Account ensures idle funds can be swept out to a Fixed Deposit Account bringing you a high rate of return. The money can be swept back into your Savings Account during emergency. The Bank will advise you to set a limit on your Savings Account and transfer extra cash to your Fixed Deposit when surplus funds come in.
Consider age-based Savings Accounts
Different types of Savings Accounts are available for the youth, children and senior citizens. These Savings Accounts tend to have an interest rate higher than that of a standard Savings Account. A Senior Citizen Account with ICICI Bank or the ICICI Young Stars Account and the ICICI Smart Star Account are accounts offering higher interest rates. Calculate Savings Account interest for Accounts like these and receive better returns.
Indirect earnings through Standard Interest Credits
When you have adequate balance in your Savings Account, the monthly interest credit may be utilised for other investments. For example, you can go for SIPs and get the interest income deposited every month. Interest income earns a higher return through fund schemes actively managed by experts.
Investments in Certificates of Deposit
Use your Savings Account to make investments in CDs (Certificates of Deposit), which are a lot like Fixed Deposits. Every scheduled financial institution and commercial bank in the country is eligible to issue CDs. CDs come with a tenure of three months to one year and in the event of an emergency, a matured CD can be reinvested to earn higher interest.
These tips warrant higher interest income while letting you enjoy the benefits of a Savings Account.
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