A savings account is the best option for people to park their savings, and the interest rates on savings account are relatively low. There are some tips to earn more interest on savings accounts.
A savings account is a bank account that allows people to save their money, control their expenses and earn interest on their money. It is the safest avenue to park your savings and hard-earned money. The savings account is easy to maintain and operate and it also gives you various facilities.
The primary reason that people now want to open savings accounts is the interest rate. In this article, we are going to tell you about the ways of earning more interest on a savings account.
Interest rates of savings account
Before discussing the tips to earn the savings account more interest on savings account rate more, it is essential first to know what the interest rate is and how it is calculated.
Banks pay a specific amount of interest on the savings that are maintained in the savings account. They pay the interest to encourage the depositors to deposit more money in the savings account.
The concerned banks are also increasing the interest rates on the savings account if any changes are implemented amended byin the RBI.
Effective tips to earn more interest
Here we would like to give you some tips that will help you to earn more interest on your savings account. Do not stick to the fixed interest rates. Follow the given tips and get access to earn more interest.
1. Maintain the high monthly average balance
Today, the savings account holder needs to maintain a low monthly average balance in their accounts. However, you can easily earn good interest on the savings account at a higher rate if you properly maintain the monthly average balance.
2. Choose from the broad range of savings accounts
There are many banks that provide a broad range of savings accounts to their customers to target their requirements. The bank that provides the savings account provides a high-interest rate along with many benefits. So it is suggested to choose the relevant bank that meets your needs first.
3. Link your FD to get the sweep in facilities
You can easily link the multiple FDs to your savings account. Once you link the FD, you can easily activate the sweep-in facility on the linked FD, which permits you to withdraw the money without splitting the entire amount partially.
This is considered a proven method of earning the interest from the existing FDs without any compromise to the liquidity of the savings account.
4. Open a digital savings account
There are many banks that provide the facility of opening a virtual savings account through the digital banking app. By opening a digital savings account, you get the benefits of earning high interest.
A savings account does not mean compromising the interest on the storing funds. A little awareness towards the saving account helps you to earn good interest.