Ways to Earn Higher Savings Account Interest Rate
05 Jun 2023

Ways to Earn Higher Savings Account Interest Rate

Simple methods to earn a higher Savings Account interest rate

Key Takeaways

  • Your Savings Account is a personal bank account on which you earn nominal interest.
  • You can park your funds and earn interest on your Savings Account deposits.
  • Strategies to increase Savings Account interest are simple and easy.
  • Higher Saving Account deposits converts to higher interest earnings.
  • You can choose certain Savings Accounts with high average monthly balances to earn higher interest rates.

A Savings Account is a type of deposit account wherein you can park your savings and enjoy liquidity. You can use the funds in this account for all kinds of payments, withdrawals, investments, etc. The purpose of the account is to encourage savings and provide easy access to your funds. Banks typically offer nominal interest on your Savings Account deposits. But you can earn higher returns as well. Read on to understand how to earn interest on Savings Accounts deposits.

Ways to Increase the Saving Account Interest Rate

Consider these strategies to earn high Savings Account interest rates.

  • Compare Bank Offers

    The best way to earn interest on Savings Account is to choose a bank that offers the maximum interest. While most banks offer more or less similar interest rates on Savings Account deposits, some of them have special offers. You can compare the base interest rates on Savings Accounts of different banks online before opening your account to select a higher interest-generating Savings Account.

  • Use Auto-Sweep Facility

    An indirect method to earn a higher interest rate with Saving Bank Accounts is to opt for the Fixed Deposit sweep-in facility. This way, you can transfer your surplus Saving Bank deposits amounts to a Fixed Deposit account and earn higher returns than those offered on your regular bank account.

  • Maintain Sufficient Deposits

    Your Savings Accounts are the most liquid type of investment. During emergencies, you can access these funds at a moment’s notice through your ATM cards, cheque books, etc. Maintaining a higher account balance, not only gives you access to lump sum cash when you need it, but also converts to higher interest earnings. This trick makes it one of the easiest ways to earn interest on a Savings Account.

  • Consider Specialised Accounts

    There are multiple types of Savings Accounts designed to fulfil the specific needs of different types of account holders. They not only fulfil distinct requirements but also offer specialised interests. Savings Accounts for senior citizens and women are some examples that offer the highest interest rate on savings. Some banks also offer higher interest rates if you maintain deposits exceeding certain amounts. For instance, maintaining deposits exceeding INR 1 lakh can earn you a 1% or 2% higher interest rate than the standard interest rate offered by a bank.

  • Open Multiple Accounts

    Having just one account makes you rely on it for all your financial needs. As a result, you may deplete the savings on which you could have earned interest. However, opening multiple Savings Accounts and setting specific financial goals for them proves helpful. You can track your various accounts easily via their individual banking apps.

Final Note:

The above-mentioned strategies can help you earn high interest on Savings Account. You can combine different strategies to enhance your Savings Account interest earnings. Ensure you research about the various bank accounts and also consider their features and benefits before opening your account.

With DBS Bank app, you can open a new savings account in a few minutes! Download the app to get started.

*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.