Savings accounts are quite popular and are frequently seen as the best way to save money and earn interest. In addition to serving as one of the best places to keep hard-earned cash, savings accounts are simple to manage and operate and offer several conveniences, including bank drafts, checks, debit cards, etc.
The interest rate is the only thing you might be worried about when putting your savings into a savings account. Compared to other accessible investment options, a savings account gives the lowest interest rates. However, there are many things that you need to understand on how to get more interest on money in a savings account.
Decide on a high-interest Fixed Deposit Account
The best strategy to increase your savings account’s returns is to create a Fixed Deposit at a bank that offers attractive interest rates. A greater interest rate automatically results in more significant returns. Before choosing the best bank to work with, compare fd rates online. You can make more return on the amount accumulated over time by taking advantage of even a small increase in the interest rate on Fixed Deposits.
Plan your monthly spending and utilize the auto-sweep feature
You might be wondering how setting a budget relates to generating income. This is among the oldest yet most practical methods for managing money to get the highest return on savings accounts. You can find several ways to save money by making a budget, which will also assist you in comprehending your monthly spending. When you know your monthly spending, you may make the most of the auto-sweep feature. Your savings account’s excess funds can be automatically transferred to a fixed deposit with the help of the auto-sweep feature. It is surely an efficient answer to how to get more interest on money.
Consider bank accounts based on demography
Many banks offer separate savings accounts for kids, youth, seniors, etc. These accounts could have interest rates that are higher than typical savings accounts. Savings accounts for senior citizens, particularly, are known to have a higher interest rate. If you have a kid, you can start a kids’ savings account, put money in it, and get a better rate of return.
Set financial objectives with FD
A lack of discipline is one of the main reasons why so many struggle to meet their financial objective of saving money. You can decide to save a specific sum of money in a set period. Fixed deposits are a secure investment option as they are insured by the government, up to a certain limit. In case of a bank failure, depositors can rest assured that their funds are protected. Additionally, fixed deposits are a flexible investment option, allowing individuals to choose the tenure of the deposit and the interest payment frequency. This can be monthly, quarterly, half-yearly, or annually.
Use the incentives provided by debit cards
Many banks provide debit card holders with a wide range of reductions, advantages, and other perks. Some debit cards even have free insurance coverage. Over time, these advantages and benefits can enable you to make considerable financial savings. Using such debit card incentives when making your regular purchases is thus one of the answers to the never-ending question: how to get more interest on money.
Have more than one savings account.
You can gain more advantages and manage your money simply by having two or more savings accounts. This is because you may find it challenging to prevent money from being spent if you only have one savings account. Many have their main savings account connected to digital wallets and AutoPay/BillPay for different bills. Therefore, keeping a separate savings account in which you put any money left over after monthly expenses is helpful. Avoid connecting this separate account to any payment systems, such as UPI, and preferably don’t use a debit card on it as well. This is among the most practical savings account strategy and a terrific approach to effectively setting money aside for a rainy day.
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Conclusion
Most people start a savings account as their very first bank account. Each bank has a different interest rate you can earn on your savings. Returns on savings accounts can be earned in a variety of ways. However, because they lack the necessary knowledge, many cannot take full advantage of a savings account. Savings accounts shouldn’t always entail giving up on interest rates in the name of financial security. A little foresight and research will make savings account the best way to save money and earn interest.
