A bank savings account is the most basic account with which you begin your financial journey. It is the most uncomplicated and easy-to-operate bank account. Traditionally, bank savings accounts function was to keep your money safe. With changing times and financial needs, banks are now offering a variety of benefits and features on a savings account. And with new features and benefits, the interest rates have also increased in savings accounts.
Ways to Get the Highest Interest Rates on Your Bank Savings Account
- You can avail the best bank savings interest rates by comparing different savings accounts.
- The best bank savings interest rates can get you an interest rate as high as 6.50% per annum, which is credited to your account if you keep your money saved in the account for a decent amount of time.
- Additionally, you can open a digital bank account with zero balance to save yourself from the penalty applicable for non-maintenance of the savings account minimum balance.
- To gain more interest from your savings account, start a Systematic Investment Plan (SIP) or a Recurring Deposit (RD). You can start your investment with a minimum of Rs. 2,000 with your digital bank account zero balance.
What More Does Your Bank Savings Account Offer?
Along with high-interest returns, a savings bank account offers several other benefits to its account holders, some of which are listed below.
- Safety of the deposited money: Money is precious. So it needs to be kept safe. People have been depositing their money in bank savings accounts for as long as they can remember. Depositing money in a savings account of a trusted bank and get you peace of mind.
- Insurance coverage: A savings account is insured up to Rs. 1 Lakh by the DICGC (Deposit Insurance and Credit Guarantee Corporation), compensating your savings to a reasonable limit in case the bank defaults or goes bankrupt.
- Steady returns: The returns on a savings account are not exponential, but with the right bank, the depositor can enjoy high-interest returns, which add to your wealth slowly and steadily.
- Easy liquidity: The funds available in the savings account are highly liquid. The account holder can withdraw and deposit funds in their savings account as and when they want. This makes a savings account the best option to keep funds for emergency purposes.
- Inculcates financial discipline: Carrying cash makes you more prone to spending impulsively. But when you keep it deposited in a savings account, you would think twice before withdrawing it. You can see how much you deposited and withdrew in a month through monthly bank statements. Using them, you can see where you’ve been spending most of your fund and can discipline yourself. People open minor savings accounts for their kids to introduce them to the world of financial planning.
- Anytime and anywhere banking: Bank account holders do not need to visit the bank’s branch to make their banking transactions. Account holders can sit back and relax at their homes and transfer money through online banking services. You can make fund transfers through NEFT, RTGS, IMPS, and UPI without waiting for normal banking hours.
- Debit card facility: With the government backing the digital payment mode across the country, banks are offering debit cards with bank savings accounts to make cashless purchases. You can use your debit card to make cashless expenses at the shopping stores of your choice or withdraw cash from an ATM using your debit card. You can also enjoy great discounts and offers online shopping using your savings bank account.
- Helping with income tax returns: Account holders can receive salary payments in their bank savings account. With this, one can easily calculate the gross annual income and use the bank statements as income proof to file income tax returns.
Low-interest returns on a savings account are a thing of the past. Account holders can enjoy high-interest returns on their bank account deposits and get various other benefits on their deposited money.