Savings account interest rates have historically been modest. Currently, the rates range between 3.5 percent and 4% per year 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
Other than basic savings account and zero balance accounts, there is a criteria to maintain minimum average monthly balance depending on the type of account you hold. This is especially helpful for people who utilise their savings account to pay for monthly expenses like bills and other obligations. To prevent any penalties from the bank, adjust the amount held in the Savings Account such that it averages to the minimum monthly value.
According to the HDFC Bank website, “If the average monthly balance is Rs. 10,000, it is not necessary for you to maintain that balance every single day of the month. If you adjust your spends and inflows in such a way that the average is Rs. 10,000 you can still earn the same rate of interest on your balance.
Open specific savings accounts
Kids Savings Accounts, Senior Citizen Savings Accounts, and Youth Savings Accounts are just a few examples of savings accounts.
These accounts pay a greater interest rate while also providing additional benefits. Senior Citizens Accounts, for example, typically pay a higher rate of interest than regular Savings Accounts. It is easy to increase the account’s returns by introducing a sweep in facility.
In some accounts, you need not 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 offers you promotions and offers on a regular basis to get the most out of your money. According to HDFC Bank website, “HDFC Bank offers a wide range of benefits to its customers. From shopping/EMI offers on e-commerce sites and exclusive deals during festivals to discounts on food delivery apps and more; having an HDFC Bank Savings Account can be a rewarding experience.”
Opt for Sweep In facility
Sweep In is an automatic facility in which any money beyond a certain limit is automatically converted to a Fixed Deposit. In the event of a cash shortage, the bank automatically liquidates the Fixed Deposit to meet the shortfall. The bank will begin the sweep in facility based on your standing instructions. It is preferable to invest idle funds in Fixed Deposits and receive interest at those rates rather than keeping them in a Savings Account.