When you receive some cash as a gift, your parents recommend putting it in the piggy bank. Over the years, home security locks, steel containers, and piggy banks have been replaced with Bank Accounts, which are more secure, easily accessible, and extend a range of banking benefits.
There are different types of Bank Accounts. Savings Account is the first Bank Account opened by most individuals. It encourages you to save a decent amount. It earns you a moderate interest rate and lets you carry out daily banking systematically. You can refer to the following to save a substantial amount and maximize your interest earnings from the Savings Account:
Scout for the highest interest rate
A Savings Account is a common financial instrument offered by banks. Every bank has different account features, benefits, and interest rates. Do your homework about various bank offerings. Open a Savings Account with a bank offering the highest interest rate and maximum banking benefits.
Maintain the minimum balance
You need to maintain a minimum balance in your Savings Account. The minimum balance requirement is different between banks. Reach out to your bank for specific information. You are liable to pay a penalty for the non-maintenance of the minimum account balance. You should keep up with the minimum balance as it helps you save some money and avoids exorbitant penalty charges.
Contribute to the account regularly
Make savings a habit. Contribute an amount to your Savings Account, no matter how small it is. This way, you can build a significant financial corpus over time. Furthermore, a higher account balance attracts higher Savings Account interest rates. This helps maximise your interest earnings.
Open multiple Savings Account
Since the Savings Account is suitable for everyday banking, most individuals rely heavily on it. There is no harm in doing so. However, you should consider opening multiple Savings Accounts. This way, you can segregate your spending, savings, and investments better. Not to forget you earn interest from every Savings Account.
The procedure to open one is very simple. You need to meet basic eligibility criteria, submit necessary documents, and complete the Know Your Customer requirement. You can open an account by visiting the nearest bank branch or via the Banking App.
Make use of auto-sweep-in facility
You set a threshold limit for your Savings Account balance. Once your account balance exceeds the threshold limit, the surplus amount gets automatically transferred to a Fixed Deposit. This is known as the auto-sweep-in facility. It helps you earn a higher interest rate on your surplus money. You can approach the bank to avail of the auto-sweep-in facility and set the threshold limit.
