A Savings Accounts could be the best choice for individuals and families. It provides a safe outlet to save funds and can be used to make payments, draw cheques, and make investments. The rate of interest on a Savings Accounts always been low. Currently, the rates are around 3.5% to 4% per annum. With these interest rates, there are some possible ways to get a higher interest rate.
Following are some ways to get the higher interest rate:
Ways to maintain minimum monthly balance:
It is not required for customers to maintain the minimum balance every day of the month. This especially helps those people who use the Savings Account to make their monthly expenditure. By adjusting the amount kept in the Savings Account, so that the minimum monthly balance is sufficient to avoid any penalties from the bank. If the customer has Insta Account, you do not need to maintain any minimum balance and will not be charged any penalty.
Open specific Savings Accounts:
Banks offer a wide range of Savings Accounts. Some types of Savings Accounts are Kids Savings Accounts, Senior Citizen Savings Accounts, Youth Savings Accounts and many others.
All these accounts have a higher interest rate and they also offer other benefits at the same time.
Opt for Sweep In facility:
A Sweep In facility is an automatic facility n which any amount above a particular limit is automatically converted into the Fixed Deposit. In case of fund requirements, the bank automatically adjusts the Fixed Deposit to fulfil the fund requirements. Moreover, the excess funds earn interest at Fixed Deposit rates.
Banks that offer the highest interest rate
YES Bank, Kotak Mahindra Bank and IndusInd Bank have been gathering customers by offering higher savings account interest rate. These banks have offers a huge increase in savings bank deposits as well as customer base. Private banks like HDFC, ICICI, Axis and nationalised banks are offering only at 4% interest rate.
Savings account interest rates can drop based on reducing interest rates for FDs. These banks have held on to the rates. YES, Bank is a good option, but it charges a closing fee for the savings account. Ratnakar Bank offers 5.5% savings interest but specifies a minimum balance of Rs 5,000. FirstRand Bank offers 7.25% interest for the Platinum savings account but needs a high minimum balance (Rs1 lakh).
A Savings Account is one of the most trusted places to keep funds. By following a few tips and tricks, it is possible to maximize Savings Account interest rates. With some FD and other facility, customers can earn the highest interest rate. And above-mentioned banks are still offering higher interest rate but with some conditions. Customers can choose according to their requirements and monthly incomes.