Asavings account is often considered the beginning of your financial journey. To enjoy any financial and banking service, you must have a savings bank account. Every bank in India offers savings accounts to individuals across financial backgrounds.
A savings account is a type of bank account that lets you deposit and save money safely while earning interest on your balance. While a savings account offers lower interest rates than other investment instruments like stocks or mutual funds, you can maximise its benefits by following a few tips.
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1. Shop around for the best interest rates
The most common way to get a decent return in your savings account is to look for a high interest paying bank. Different banks offer different interest rates, so you can choose an account that suits your goals. By shopping around and researching online, you can find the best rate and earn more money on your savings.
Modern banks like IDFC FIRST Bank offer higher-than-average savings account interest rates with monthly interest credits. With IDFC FIRST Bank, you get easily-accessible online services such as digital account opening, instant fund access, minimal documentation and more.
2. Set saving goals
A financial blueprint and outlining your goals can assist you in saving more. Setting specific saving goals can help you stay motivated and on track. It can also help you decide how much to deposit into your savings account each month.
3. Make regular deposits
Consistency and patience is the key to achieving your financial goals. Depositing money regularly into your savings account, even if it’s just a small amount, can help build your savings over time.
4. Avoid unnecessary withdrawals
Withdrawing money from your savings account may reduce your savings and lowers the interest you earn. Try to withdraw money only when necessary. Avoid frequent withdrawals as they can incur overuse charges since most banks offer a limited number of withdrawals.
IDFC FIRST Bank savings account holders enjoy unlimited ATM withdrawals at any bank in India as long as their average minimum balance is maintained.
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5. Use automatic transfers
Banks offer an automatic transfer feature which can help you send surplus money directly into your savings account. To make saving easier, you can set up automatic transfers from your salary account to your savings account.
6. Understand the various fees charged by the bank
Being aware of the various charges and fees linked to your savings account is critical. Higher charges can degrade your saving goals over the period. While most banks offer a specific number of free transactions and withdrawals, some accounts may have static charges like account maintenance fees, other ATM withdrawal charges, etc.
However, there are exceptions in the market with IDFC FIRST Bank’s zero-fee banking promise which ensures you don’t get charged for over 28 commonly-used services on a savings bank account.
Still, you should always read the account’s terms and conditions carefully to understand the fees, and how they may affect your savings. Note that it’s important to maintain the average minimum balance in your savings account to enjoy uninterrupted access to its benefits.
By following the tips mentioned above, you can maximise the benefits of your savings account and watch your savings grow over time. In addition to the high-interest rate, when opening a savings account, research and choose an account that aligns with your financial needs and is easy to maintain.
This article is generated and published by FPJ focus team. You can get in touch with them on [email protected].