You may be wondering if there’s anything you can do to earn more interest on your savings account. There is! Read this article to learn how.
Interest rates on savings accounts vary by bank, so you should always compare rates before opening an account.
Some banks offer higher rates for customers who maintain a minimum balance in their account.
On the other hand, bank provide a system to earn FD rates on savings Bank account with the help of multi options deposit.
MOD is quite useful to those who has a regular inflow of money in the Bank account. Excess amount keeps on converting to fixed deposits.
When in need, these FDs will break out in last in first out manner. It means that whenever you have less balance in your savings Bank account, the FD which was created recently will only breakout.
The older FDs will ne intact earning better interest than SB rate.
You may also consider setting other avenues to earn more through savings Bank account.
Below are few areas you should address to.
Checking account and savings Bank account.
Set up an automatic transfer from your checking account into your savings account.
If you have a checking account at a bank, you can set up an automatic transfer from that account to your savings account.
This will help you avoid paying fees when transferring money between accounts. It also helps you build up a larger savings balance.
Invest in mutual funds or ETFs.
Mutual funds and exchange traded funds (ETFs) are both ways to invest in stocks and bonds. They offer diversification, so you won’t lose too much if one stock goes down.
They also provide tax advantages because you pay taxes only on dividends and capital gains, not on the original investment price.
SIPs are one of the best ways to expose yourself to stocks and bonds. It may guide you to build a large corpus from the scratch.
Start saving for retirement.
If you’re looking to start investing for retirement, consider opening an online savings account with SBI, ICICI, HDFC Bank etc.
It offers competitive rates and no minimum balance requirements. Plus, you can open an account without a credit card.
Life insurance and Mutual funds are the main investment options that you have. Get a good plan and secure your post retirement expenses.
Retirement Annuity plans are something to watch out. This will help you build huge corpus when you attain 60 years of age.
SIPs will also serve the purpose if you choose the right product.
Pay off high-interest debt like student loans.
One of the easiest ways to make money with a savings account is by paying off high-interest debt.
Student loan, business loans, personal loans debt has been one of the biggest financial burdens for young people.
These loans also bear higher interest rates. If you have availed these kind of loan, think of a way to pay down the outstanding amount.
It would really give a push toward your saving plans.
Save money for big purchases.
If you’re looking to save money for a major purchase, such as a car or home, consider using an online bank instead of a brick-and-mortar bank.
Online banks offer higher rates than traditional banks, so you might be able to earn more interest on the same amount of money.
This thing is visible only in certain countries. Countries like India, does not have any variation. But there may be better offers in online platform.
Loan interest rates at discounted rates are mostly seen in online mode.
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