Looking for ways to earn higher interest on your savings? While traditional savings accounts may offer modest interest rates, there are ways you can employ low-risk strategies through savings accounts to help boost your returns.
Earning good interest rates on your savings account can be a great way to make your money work for you. With the right strategies, you can earn higher interest on your savings without taking any risks.
How to earn high interest on your savings?
Here are some effective methods to maximise the interest on your savings account balance:
- Open a high-interest-rate savings account
One of the most popular low risk ways to earn higher interest on your savings in India is through a high-interest savings account. These accounts are similar to traditional savings accounts but offer a higher interest rate. Research and compare interest rates, fees, and features to find a high-interest savings account.
- Maintain a high monthly average balance
Merely having a high-interest savings account is not enough. To benefit from this feature, it is essential to maintain a sufficient balance in your account. The higher your balance, the greater the interest you’ll receive on your savings. Depending on the bank, a minimum balance requirement may be required to earn high-interest rates. In contrast, some banks don’t have any such conditions. Ensure that you choose the right bank that suits your needs.
- Cashbacks and rewards
In addition to high-interest rates, many savings accounts in India also offer cashback and rewards programs. These cashback and rewards programs are a great way to earn extra money on top of the interest you are earning on your savings. When choosing a savings account, compare the cashback and rewards programs offered by different banks to find the best one for your needs.
- Opt for a zero-balance account
If you are unsure whether you can maintain the required balance for the month, you can choose a zero-balance account. This will allow you to earn interest on your balance without worrying about penalties for not maintaining a minimum balance. It’s an excellent choice for individuals who are starting to save and cannot afford to keep a high balance.
- Open more than one savings account
Another effective strategy is to open more than one savings account. By diversifying your savings into multiple accounts, you can separate your funds based on specific goals or purposes. This approach helps you better manage your savings and ensures that your high-interest account continues to accrue interest. Using separate accounts for daily expenses and savings goals will keep your earnings intact.
To wrap up
Earning higher interest on your savings doesn’t have to be a daunting task. By following these low risk strategies, you can make your money work harder. Remember, diligent research and comparison of savings account options will help you find the best fit for your financial goals. Start maximising your earnings today and watch your savings grow.
