Savings account interest rates have always been modest. Currently, rates vary between 3.5% and 4% per annum for most banks.
According to HDFC Bank, these are ways to get a better rate and earn more on a standard savings account.
Average monthly balance
Besides the basic savings account and zero balance accounts, there is a criterion for maintaining a minimum average monthly balance depending on the type of account you hold. This is especially useful for people who use their savings account to pay monthly expenses such as bills and other obligations. To avoid any penalties from the bank, adjust the amount held in the savings account so that it averages the minimum monthly value.
According to the HDFC Bank website, “If the average monthly balance is Rs. 10,000, there is no need for you to maintain this balance every day of the month. If you adjust your outgoings and inflows so that the average is Rs. 10,000, you can still earn the same rate of interest on your balance.
Open specific savings accounts
Children’s savings accounts, seniors’ savings accounts, and youth savings accounts are just a few examples of savings accounts.
These accounts pay a higher interest rate while offering additional benefits. Accounts for seniors, for example, typically pay a higher interest rate than regular savings accounts. It is easy to increase account returns by introducing a swipe facility.
In some accounts, you don’t need to maintain a balance if you create a fixed deposit of a certain amount. So make sure to choose the type of account wisely.
Offers on shopping sites and more
Choose a savings account that regularly offers promotions and offers to get the most out of your money. According to the HDFC Bank website, “HDFC Bank offers a wide range of benefits to its customers. From shopping/EMI offers on e-commerce sites and exclusive offers during festivals to discounts on food delivery apps and more; Having an HDFC bank savings account can be a rewarding experience.
Opt for the Sweep In function
Sweep In is an automatic facility where any money over a certain limit is automatically converted into a fixed deposit. In the event of a lack of liquidity, the bank automatically liquidates the fixed deposit to make up the shortfall. The bank will begin scanning based on your standing instructions. It is better to invest unused funds in fixed deposits and earn interest at those rates than to keep them in a savings account.