Imagine sipping your morning coffee, knowing your Savings Account isn't just sitting there—it's growing, working for you, creating a cushion for your dreams and a safety net for your future.
With the right approach, your Savings Account can evolve into a robust foundation for your financial freedom. Wondering how to get more interest on your Savings Account? Don’t worry, in this guide we'll walk through strategies to enhance your Savings Account return, transforming your financial plan into one that's as bright and promising as your aspirations.
Maximising returns on Savings Account
The journey to enhancing your Savings Account return begins with choosing the right bank that offers competitive
interest rates and innovative features. A high return Savings Account is not just about the rate; it’s also about
how you manage and optimise your account to suit your financial goals.
Effective tips for maximising Savings Account returns
To turn your savings into a powerful asset, consider implementing the following strategies:
High-interest rate
Seek out Savings Accounts that offer a significantly higher interest rate than the average. Financial institutions
often provide tiered interest rates, where the rate increases with the amount saved.
Axis Bank provides competitive interest
rates on Savings Accounts, ranging between 3% and 3.5%, depending on the balance maintained. This tiered
interest rate system ensures that higher balances earn higher interest rates, making it beneficial for customers to
maintain a significant balance in their accounts to maximise returns.
Auto-sweep facility
The auto-sweep facility is a smart feature that links your Savings Account to a Fixed Deposit account.
When your balance exceeds a certain threshold, the excess is automatically transferred into a Fixed Deposit, earning
a higher interest rate. This arrangement offers the perfect blend of liquidity and high returns.
Axis Bank's Auto Fixed Deposit feature exemplifies the auto-sweep
facility, blending the flexibility of a Savings Account with the high-interest earning potential of a Fixed Deposit.
When your Savings Account balance exceeds ₹25,000, the auto Fixed Deposit kicks in, automatically transferring
surplus funds in multiples of ₹5,000 into a Fixed Deposit. This savvy tool enables you to earn higher interest rates
akin to those of Fixed Deposits while still maintaining the liquidity you need for everyday transactions.
High balance
Maintaining a high balance in your Savings Account can lead to higher interest earnings. Many banks offer
preferential rates for accounts with substantial balances, turning your savings account into a lucrative investment
option.
For example, the Prestige Savings Account
encourages maintaining a higher average quarterly balance, offering numerous benefits, including unlimited ATM
withdrawals, cashback, and discounts on various transactions.
Recurring deposits
Pairing your Savings Account with a recurring deposit (RD) is a disciplined approach to saving. An RD allows you to
set aside a fixed amount regularly, which earns interest at rates comparable to Fixed Deposits. This strategy not only builds your savings but also
maximises the interest you earn.
Axis Bank's Recurring Deposit is designed to enhance your savings
through consistent monthly contributions. With a minimum investment starting at just ₹500, it's tailored to be
accessible for everyone. The interest rate climbs higher based on the instalment amount and the tenure of the
deposit, incentivising you to save more. You can open an RD online, and with the flexibility of tenures ranging from
6 months to an impressive 10 years, you're equipped with the freedom to plan both, short-term and long-term
financial goals.
Moreover, as part of the Axis eDGE Rewards program, saving regularly not only secures your financial future but also
rewards you in the present, offering a gratifying banking experience that cherishes your commitment to saving.
Rewards and cashback offers
Banks often reward customers with bonus interest rates, cashback offers, and other incentives for using their banking
services. Engaging in these programs can enhance your overall returns, making every transaction more rewarding.
The Liberty Savings Account is an excellent
example of how customers can benefit from rewards and cashback offers. With this account, customers can enjoy flat
5% cashback on weekend spending across food, entertainment, shopping, and travel, as well as quarterly gift vouchers
worth ₹750, among other benefits.
Also Read: Complete
guide on how to open a Savings Account in 5 easy steps
Conclusion
Maximising your Savings Account returns is an achievable goal with the right banking partner and the appropriate
financial tools. Begin by exploring Axis Bank's offerings and select the product that best fits your financial
landscape. With the convenience of online banking and the assurance of competitive interest rates, there's no better
moment than the present to start shaping your future. So why wait? Embark on your journey to financial success with
Axis Bank today and watch your savings soar.
FAQs
How do I increase my Savings Account interest rate?
To increase your Savings Account interest rate, consider switching to a high-yield Savings Account, maintain a higher balance, negotiate with your bank and explore promotional offers. Regularly review interest rates to ensure you get the best savings return.
How can maintaining a higher balance affect my Savings Account returns?
Maintaining a higher balance in your Savings Account can lead to increased interest earnings. Many banks offer tiered interest rates, where higher balances attract better rates. This means that the more you save, the more interest you earn, maximising your returns over time and enhancing your overall financial growth.
Are there specific types of Savings Accounts that offer better returns?
High-yield Savings Accounts, Fixed Deposit-linked Savings Accounts and Sweep-In Accounts tend to offer more competitive returns. High-yield accounts feature interest rates better than traditional bank accounts, while Fixed Deposit-linked accounts merge savings with Fixed Deposits to boost returns. Sweep-In Accounts automatically shift surplus funds into Fixed Deposits, maximising interest gains.
Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.
